Mr. Tung, our Chief Executive, announced that China had agreed to amend July¡¦s free-trade agreement with Hong Kong to make it much easier for tourists from Beijing and Shanghai to visit Hong Kong. Beijing will also support ongoing efforts by mainland companies to issue stock on the Hong Kong Exchange and will consider letting Hong Kong banks take deposits, issue credit cards and conduct other retail transactions in renminbi, China's currency. Mr. Tung sought a widening of the trade pact as part of a strategy of allaying public concerns in Hong Kong made evident by three large street protests in early July 2003.
However, a long, steep fall in property values has wiped out the savings of a generation of homeowners including doctors here, fed political unrest and caused deflation that makes even Japan's falling prices pale by comparison. The Hong Kong Monetary Authority announced that 22 percent of all residential mortgages are now larger than the current value of the properties they financed. The share of such mortgages that are "underwater," in bankers' shorthand, has jumped from 14 percent of mortgages in just one year.
Members of the Hong Kong middle class including doctors, not the banks, have borne the brunt of the decline in prices. Deflation contributed to the enormous pro-democracy demonstrations that shook the political establishment of Hong Kong in July. A Hong Kong University survey of the main march, on 1st July, found that those taking part were largely the college-educated professionals who have fared worst from falling apartment prices.
In early August, there have been several tentative signs that the real estate market and the economy may have finally hit bottom and could start to recover in part, oddly enough, because of Beijing's reaction to the discontent here.
The benchmark Hang Seng Stock Index has climbed to its highest level in almost a year. Property stocks have helped propel this, some of them rallying by more than 40 percent since the worst of the SARS outbreak last March.
Chinese leaders in Beijing have used economic concessions to Hong Kong in an attempt to allay public anger about plans for stringent security laws. The concessions have strengthened Hong Kong's ability to compete with Shanghai, which has grown enormously over the last decade to a considerable extent because of huge loans by state-owned banks that are seldom repaid, an advantage Hong Kong has not had.
With the blessings from Beijing, all the above measures would, to a certain extent, boom up the economy here in Hong Kong. Just like other citizens, the Medical profession would surely benefit from the boom in one way or the other.
Although the objectives of CEPA are clearly laid down to promote trade and investment facilitation in Hong Kong and Mainland China, measures for our profession are still in its infancy. Members who are interested may note there are several points of facilitation :-
It may not be of interest to most of us at first glance; however, it may turn out to be one of the common pathways of our future generation. As a starter, our Union is planning to organize courses in Putonghua in Medical Usage, Chinese Medical Reporting and others for those who are interested and who may choose to prepare to face the new challenges ahead. Do look out for related circulars in the future.
Dr. Yeung Chiu Fat Henry
President's message ¡V CEPA (4) for September 2003/Sept Bulletin/Pub9