The eagerly awaited “Insurance Connect” scheme remains on hold, with no indication of when it might be launched. However, Hong Kong’s Insurance Authority (IA) and the central government’s China Banking and Insurance Regulatory Commission (CBIRC) are inching forward with cross-border initiatives to spur integration within the Greater Bay Area.
This was made apparent by comments from senior officials and executives at recent forums, in Hong Kong and Shenzhen. Most prominent of these were speeches given by IA chairman Moses Cheng Mo-chi and CBIRC Chief Counsel Liu Fushou.
Speaking at the Asian Insurance Forum in Hong Kong on December 10, Liu said that the key would be to establish regional regulatory mechanisms for insurance institutions to operate across the GBA. “Our next step is to facilitate the set-up of insurance institutions in the GBA through various approaches, particularly to help those with the expertise and features suited for GBA development.”
Continue reading ‘Insurance Connect’ delays; GBA integration goes on
It’s hard to see where Hong Kong is headed, now that the government has decided to invoke emergency powers to ban the use of face masks at protests. There are at least two evident certainties: that protesters will be energized, leading to a rise in violence levels; and that arrest numbers will climb. Beyond that, however, it remains to be seen whether the announcement will hasten a decision in Washington to restrict financial flows through Hong Kong or result in any other damage to the city’s economy caused by a loss of investor confidence.
Key to monitor is whether the decision can be effective in quelling the protests. This, too, is hard to guess at the moment. It will likely embolden the more radical protesters, and radicalize others who had previously been hesitant to commit acts of violence. Yet it will also likely result in violent protesters being taken out of action quicker, blunting the protests as their more charismatic leadership is neutralized. Whether this turns out to be net positive or negative will take time to ascertain.
In the meantime, and apologies if this sounds Cyclopian, but the Greater Bay Area is not likely to be able to chug along as normal and pretend that what’s happening in Hong Kong won’t affect the rest. Putting aside the damage inflicted on the region by plunging international tourism – especially business tourism – it is important to be realistic about the effects of the Hong Kong crisis on the pace and scope of reforms being implemented in the GBA.
Continue reading Bracing for a drop in Hong Kong