Hong Kong’s status is also being undercut by China’s financial opening, which is setting Shanghai up as a competitor. Initial public offerings have boomed in both Shanghai and Shenzhen, China, and Hong Kong’s homegrown investment bankers are rapidly losing their status as go-to dealmakers, supplanted by mainland Chinese rivals.
Still, Hong Kong remains the region’s financial capital for now, and the durability of other global hubs can’t be ignored.
“London has faced invasion, fire, plague, cholera epidemics and world wars over the centuries, and has always recovered,” said Tony Travers, a professor of government at the London School of Economics. “These cities will recover. The question is whether it takes six months, six years or 25 years.”
-With assistance from Jack Sidders, Denise Wee, Jenny Surane, Shawna Kwan and Erik Schatzker.
This article was provided by Bloomberg News.