How Hong Kong’s role in China’s economic strategy may evolve in the next 5 years

As China drafts its 15th five-year plan – the next entry in a line of expansive blueprints that have set the tone for the country’s development over more than seven decades – we examine how these documents inform and reflect high-level policy priorities, what to expect in the coming iteration and how Hong Kong could strengthen its position as a “superconnector” linking the mainland with global markets.

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In a LinkedIn post earlier this month, Phil McManus, innovation and technology chair at the British Chamber of Commerce in Hong Kong, declared: “Hong Kong bounced back. It always has. It always will.”

Not long ago, the script was the opposite. Many wondered if the city had lost its allure as an international financial centre, its halo dimmed by intensifying US-China tensions, a prolonged economic slowdown and the influence of regional rivals like Singapore.

But these doubts have eased in the wake of a rising stock index, a surge in fundraising and the city’s growing appeal to global businesses and talent. As Beijing drafts its 15th five-year plan, the country’s main socio-economic development blueprint, analysts said the special administrative region could play a unique role in China’s evolving economic strategy.

“Put simply, Hong Kong’s position in China’s next five-year plan will determine the policies and resources Beijing directs its way,” said Raymond Yeung, chief economist for Greater China at ANZ.

Like other regions in China, Hong Kong, along with Macau and Taiwan, has seen its economic trajectory shaped in large part by Beijing’s policy decisions.

South China Morning Post