In the press
Updated: 2013-07-23 07:23
(China Daily)
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Protect biz environment
The news that Hutchison Whampoa Ltd (HW) plans to sell its ParknShop (PnS) supermarket chain drew citywide attention and some people are concerned this move may signal divestment by HW. Hong Kong is a highly-commercialized city, where significant changes in the scale of commerce directly affect the overall economy and people's livelihood. In this respect the investment intent of leading businesses can indeed be seen as a weathervane.
Li Ka-shing, chairman of HW and a celebrated patriotic entrepreneur, has publicly denied he is reducing investment in Hong Kong. To be absolutely fair and honest, it is quite normal for HW to examine the pros and cons of selling the PnS chain. The conglomerate has done this multiple times before. Chief Secretary Carrie Lam also spoke out on behalf of the SAR government and asked members of the public not to over-interpret the news, saying Hong Kong's business environment remains healthy and Li still supports the city as always.
Although Li is not leaving any time soon, no one can deny the fact that Hong Kong's business environment is under increasing threat from some serious problems that, if not addressed effectively, can erode the city's appeal to investors and overall competitiveness. The main causes of the threats to Hong Kong's business environment are soaring operational cost fueled by increases in land and labor expenditure and widespread weak demand resulting from the slow recovery of the global economy as well as human meddling in the form of indiscriminate politicization, which divides and destabilizes society.
Healthy business environments require social stability, harmony and rule of law; while indiscriminate politicization destabilizes society, creates conflicts and weakens rule of law. If left unchecked such human meddling will no doubt drive investors away and destroy Hong Kong's economy.
This is an excerpted translation of a Hong Kong Commercial Daily editorial published on July 22.
(China Daily 07/23/2013 page1)