Monetary Chief Asks Financial Giants to Read Less From the International Press

The Global Financial Leaders’ Investment Summit, which Monetary Authority Hong Kong hosted, took place at the Four Seasons Hotel in Central on Nov. 2.

During his speech, Chief Executive John Lee Ka-chiu declared that the event was a summit of Hong Kong returning to the center stage. He also told the guests that “the worst is over.”

Meanwhile, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, criticized that foreign media has been shortsighted and partial in their coverage of China.

He suggested to the international attendees to avoid reading too much from global media; he also called on foreign investors to understand China and its policies on their own instead.

Scholars criticized John Lee Ka-chiu’s remarks as being of a low level. They said the worst has just begun, thanks to the Hong Kong National Security Law and the brain drain due to its pandemic prevention policy.

During the 2022/23 Budget released in February this year, Financial Secretary Chan Mau-Bo announced the event of the International Financial Leaders Investment Summit.

Due to Hong Kong’s fifth pandemic wave and strict coronavirus prevention policies, the public has been raising questions in the last few months about how the Hong Kong government could hold the event.

Eventually, the President of the Monetary Authority, Yue Wai-man, confirmed the summit on Sept. 29, and the summit started at the Four Seasons Hotel in Central Hong Kong on Nov. 2.

Yue and the Chief Executive, John Lee Ka-chiu, were the first to deliver a welcome speech.

Speaking in English, Lee described the summit as a summit of “Hong Kong Returning to the Stage.” Lee also claimed that “Hong Kong has embarked on the journey of becoming normal again.

Lee told the guests that the streets of Hong Kong have become livelier than before, as “Social unrest and the worst are in the past.”

What he said at the end of the speech was mocked by netizens for having low English standards as the city’s leader. “Go for it. Get in front. Not behind.” In reality, Lee meant it was time to grab these fantastic opportunities instead of falling behind.

‘Read Less International Media’

The summit’s first session was mainland policy—Perspectives of China’s Financial Regulators. The guests watched a 40-minute video.

Hosted by Yue, he interviewed Yi Gang, president of the People’s Bank of China, Xiao Yuanqi, chairman of the China Banking and Insurance Regulatory Commission, and Fang Xinghai, vice president of the China Securities Regulatory Commission (CSRC)

In the video interview, Fang Xinghai of CSRC claimed he exchanged words with foreign investors ‘daily.’ He said the foreign investors’ proper understanding of China had been impacted, as he noticed that they would read or watch news about China from foreign media channels.

Fang blamed foreign media for their incomplete and shortsighted coverage of China, reflecting that they did not know much about the Chinese market.

Fang continued to share his advice with foreign investors: “Don’t read too much of this international press. Do not overinterpret China. Foreign investors should carefully comprehend Xi Jinping’s report on The 20th National Congress of the Chinese Communist Party on their own. So they can see what is happening in China and Beijing’s true intentions.”

Finally, reminded the investors, “Do not bet against China and Hong Kong.”

After the luncheon, Mark Carney, former President of the Bank of England, talked to Norman Chan Tak-lam, the former President of the Monetary Authority, in another discussion at the summit.

Mark Carney praised the international media when mentioning Britain’s earlier “mini-budget scandal” and said he believed in global media reporting.

Chan then asked if it was the right time to buy English pounds. Mark Carney laughed and joked that it was an excellent opportunity to purchase pounds—two weeks ago.

The Worst Has Begun

Scholar Wong Wai-kwok, a former assistant professor of politics and international relations at the Baptist University of Hong Kong, retorted regarding the government officials in an interview. Wong responded that Lee’s speech at the summit was childish. “The worst had already begun. The National Security Law and Dynamic Zero Policies have driven Hong Kong’s talents away.

The professor reckons that while Lee thought he was selling Hong Kong well, Lee was treating the attendees, who are financial leaders, like idiots. Besides, Wong said, “Besides the intelligence insult, Lee embarrassed himself with his poor English as the city’s chief.”

Wong also criticized the government for using the financial leader summit to promote their political propaganda and “Tell Hong Kong stories.” Still, he questioned when the government ever responded to the global economic crisis and China’s instabilities.

“This kind of brainwashing propaganda is counterproductive and may backfire and further reduce investment in China and Hong Kong,” Wong stated.

Wong believes it is time for foreign investors to decide whether they will continue plowing their money into China and Hong Kong.

“Foreign investors might have to pay a huge price to avoid any tragic loss of their assets due to unstable political situations in China and Hong Kong, as well as the continuous tightening of foreign investments,” Wong warned.

On Oct. 17, twenty Hong Kong people’s organizations wrote to the president of the United States, secretary of state, secretary of treasury, members of the U.S. House Committee of Financial Service, members of the Senate Banking Committee, members of the Foreign Affairs Committee of the House of Representatives and members of the Senate Foreign Relations Committee.

In their letters, the organizations criticized many U.S.-funded finance giants for attending the finance and investment summit in Hong Kong. Signatures mainly included Hong Kong organizations in the United States, Hong Kong Democracy Council, and Chicago Solidarity with Hong Kong.

The joint letter stated: “Citigroup, JPMorgan Chase, Morgan Stanley, Blackstone Group, Goldman Sachs, and other financial institutions that intend to attend the summit will be violating the human rights of Hong Kong people.”

The letter continued by meeting with sanctioned Hong kong officials to form financial strategies and carry out social activities to support the Hong Kong government, which would make them accomplices in violating Hong Kong human rights.

In the joint letter, the organizations asked the U.S. government to warn financial institutions who were to participate in the summit, including Jamie Dimon, board director and CEO of JPMorgan, Citigroup Executive Director Jane Fraser, and other financial institutions. The groups also reminded the economic giants of violating U.S. policies which may result in legal and regulatory consequences.

Eventually, five guests announced their absence from the summit before the summit due to confirmed diagnosis of COVID-19 or other reasons, including Executive Director Jane Fraser, CEO of Barclays, C.S. Venkatakrishnan, CEO of Capital Group Timothy Armour, CEO of Oriental Huili, Valerie Baudson, and President and Chief Operating Officer of Blackstone, Jonathan Gray.

Paul Chan’s Exemption from Quarantine after COVID-19 Diagnosis

Meanwhile, Paul Chan, the HK Financial Secretary, was diagnosed with COVID-19 positive during his visit to Saudi Arabia. However, he was listed as a “recovery case” after returning to Hong Kong. Once he arrived in Hong Kong, Chan was not quarantined. The government did not release or explain Chan’s test results to the public, so there is no need to be quarantined, but there was no explanation for the test results until Nov. 2.

The government finally issued a news release on Nov. 2, addressing Chan’s health concerns. The news release stated that when Chan arrived on Nov. 1, he tested positive for a nucleic acid test at the airport. However, his C.T. value was said to be within that of a recovery case with no symptoms. The government also noted that before boarding the plane, Chan obtained a negative test result. Therefore, the evaluation was a recovered case, and there was no need to be quarantined or restricted by the “red code.”

The Hong Kong government announced that between Sept. 26 and Nov. 1, 2022, 455 arrivals in Hong Kong reported that they had been infected with COVID-19 within three months. These cases tested negative before boarding. They received negative rapid antigen tests before boarding the plane and tested positive after the nucleic acid test when they arrived in Hong Kong. None of the people concerned had symptoms, and the C.T. value of nucleic acid testing was relatively high.

The Department of Health evaluated that Chan’s recovery case should not be infectious, which was why it was not listed as a newly infected input case or still contagious. Hence, there is no need for quarantine or enforcing red code restrictions.