As China’s economy grapples with sluggish growth, the Chinese Communist Party (CCP) has called on Hong Kong’s elite families to spearhead an economic revival. However, the city’s wealthiest appear hesitant to answer this call, raising questions about the effectiveness of Beijing’s strategy in integrating Hong Kong into the broader Chinese economic framework.
In a meeting on September 20 with Hong Kong’s Chief Executive John Lee during an investment conference in Beijing, Xia Baolong, the head of the ruling party’s Hong Kong and Macao Work Office, urged Hong Kong’s business community to play a more active role in stimulating economic growth. Xia conveyed Beijing’s hope that all sectors of Hong Kong society, particularly entrepreneurs and business magnates, would unite to seize opportunities for development and contribute to the prosperity of both Hong Kong and China. “[Hong Kong’s business community should] transform their love for their country and for Hong Kong into concrete and practical action,” Xia told Lee, emphasizing that their collaboration was crucial for Hong Kong’s continued success.
This rallying call is consistent with a broader effort by Chinese President Xi Jinping to encourage private sector participation in national economic recovery under his “public-private partnerships” framework. While these partnerships are framed as beneficial collaborations, some analysts caution that they could be a covert attempt by the government to gain greater control over private assets.
The Hong Kong administration has been keen to highlight the importance of local business leaders in the city’s development. “The private sector in Hong Kong are not bystanders, but participants, contributors, and beneficiaries of the city’s economic rewards,” Lee said, echoing Xia’s sentiment. Yet, despite the government’s optimism, signs of meaningful engagement from the city’s business tycoons have been sparse.
Wealthy Families Divided Over Beijing’s Economic Vision
Many of Hong Kong’s most prominent families trace their wealth to the city’s colonial era, building vast business empires in industries like shipping, real estate, and finance. However, historical ties to British rule and personal experiences with the CCP’s policies have made some of these families wary of Beijing’s overtures.
In a move seen as part of a broader strategy to leverage familial and historical ties, Xi Jinping wrote to the descendants of the “Ningbo Gang”—families with roots in the eastern Chinese city of Ningbo who became pillars of Hong Kong’s economic rise—urging them to contribute to China’s rejuvenation. Prominent figures like Anna Pao, daughter of shipping magnate Sir Pao Yue-kong, and Ronald Chao, son of industrialist Chao Kuang-piu, were among the recipients of the letter. Xi’s message was clear: the wealth and influence of these families could be crucial in achieving China’s long-term economic ambitions.
However, responses to Xi’s overtures have been muted. Li Ka-shing, Hong Kong’s wealthiest man, has continued to focus on his overseas ventures. In recent months, Li’s CK Infrastructure Holdings made several significant investments in the United Kingdom, including a £350 million acquisition of a wind farm portfolio from Aviva Investors, and the purchase of renewable energy generator UU Solar for £90.8 million in May. These moves suggest that Li, along with other prominent Hong Kong business figures, may be seeking safer investment opportunities abroad rather than doubling down on their Hong Kong or mainland Chinese assets.
Exiled Hong Kong businessman Elmer Yuen, whose family also hails from Ningbo, expressed deep skepticism about the CCP’s calls for loyalty. “Maybe a small number of people will invest, but the rest already know who they’re dealing with,” Yuen said, referring to the Chinese government’s history of control over private enterprises. “You can lump all of us together, us Shanghainese, most of whom are from Ningbo, and say that we have absolutely zero trust in the Chinese Communist Party.”
Xia Baolong’s appeal comes against the backdrop of broader efforts by Beijing to more tightly integrate Hong Kong into mainland China’s economy. Since the implementation of the National Security Law in 2020, which curbed many political freedoms in the city, Hong Kong has been increasingly aligned with mainland governance and economic policy.
According to Xia Ming, a political science professor at the City University of New York, John Lee’s role as Chief Executive is to push for greater economic integration with mainland China, specifically with neighboring Guangdong province and Macau. “Policy in today’s Hong Kong is clearly about how to perfectly integrate Hong Kong into what Xi Jinping calls the China rejuvenation strategy,” Xia Ming said. The ultimate goal, he argues, is to “sell Hong Kong off to Beijing and Xi Jinping,” under a framework that sees Hong Kong gradually adopting more mainland Chinese economic characteristics.
This drive for integration has sparked concerns among Hong Kong’s business community, which has thrived under the city’s traditional free-market policies and transparent legal system. “The goal of Xi Jinping’s reforms is not that mainland China will become more like Hong Kong, but that Hong Kong will become more like Yan’an,” Xia Ming added, referring to the revolutionary stronghold of the Chinese Communist Party during the 1940s, often associated with tight state control over resources.
Chinese Stimulus and Panda
In addition to policy pressures on Hong Kong’s wealthy, Beijing has rolled out a series of measures aimed at propping up the flagging Chinese economy. Chinese leaders recently announced a set of stimulus initiatives to boost demand in the real estate market, including reduced mortgage rates, relaxed restrictions for homebuyers, and tax cuts. These moves are part of what has been described as “a new model” for real estate development, with the hope that reviving this critical sector will have spillover effects on the broader economy.
On the monetary front, the People’s Bank of China, along with top financial regulators, announced a raft of monetary stimulus measures and policies designed to support property markets, stabilize capital markets, and foster what state media calls “high-quality economic development.”
The central government is also placing a significant emphasis on boosting consumption among low- and middle-income groups, an effort seen as critical to sustaining domestic demand. However, whether these measures will be enough to reverse China’s economic slowdown remains uncertain.
In a more symbolic gesture of goodwill, China recently sent two giant pandas to Hong Kong as a sign of continued support. A ceremony was held at Hong Kong International Airport on September 28 to welcome the pandas, An An and Ke Ke, who are expected to be a major tourist attraction at the city’s Ocean Park theme park. The arrival of the pandas coincides with celebrations marking the 75th anniversary of the founding of the People’s Republic of China, and images of the pandas will feature prominently in a drone and light show over Victoria Harbour on October 1.
Hong Kong’s Chief Executive John Lee expressed his enthusiasm for the pandas’ arrival, saying the entire city looked forward to welcoming them. “Citizens will join in welcoming the two giant pandas to Hong Kong, and the whole city is looking forward to it,” Lee said.
Tourism and Economic Prospects
With an expected influx of up to 1.2 million mainland Chinese tourists set to visit Hong Kong during the National Day celebrations, Lee has pinned hopes on a short-term economic boost from tourism and related business activities. “We hope that everyone can celebrate the 75th anniversary of National Day together, and also bring in many business activities to increase business and tourism revenues,” he stated.
Nevertheless, beyond the temporary surge in tourism, Hong Kong faces significant challenges in maintaining its role as a global financial hub. As Beijing continues its push for greater economic and political integration, the city’s business elites must grapple with the trade-offs between loyalty to the CCP and safeguarding their own economic interests. While some may choose to invest domestically, the lack of widespread enthusiasm among Hong Kong’s wealthiest suggests that many remain cautious, if not outright skeptical, of Beijing’s long-term intentions.
The question remains whether Hong Kong’s entrepreneurial spirit can coexist with Beijing’s vision of state-led economic development, or whether the city’s unique economic dynamism will erode in the face of increased political control. For now, the wealthiest families seem content to keep their distance, watching carefully as Beijing reshapes the future of Hong Kong.
