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Bold Vision but Lots of RisksHong Kong's Establishment sees big opportunities in further integration with China. Are they missing the downside?
OPPORTUNITIES
THE CHINA Hong Kong would become the hub for
FRONTIER developing China's remote provinces,
creating a decades-long boom for
companies and financiers.
GREATER Hong Kong would exert much greater sway
HONG KONG over all of neighboring Guangdong province. Some leaders see
twin cities in Hong Kong and Guangzhou. Goal: Cheaper housing
and manufacturing sites and lower-cost labor.
FINANCIAL Arrival of dozens of China's biggest com-
CAPITAL panies, or ''red chips,'' would make Hong Kong Asia's
financial capital for the 21st century.
DOWNSIDE
A CHINESE With political freedom curtailed, an obedient
CITY press, and government intervention, Hong Kong starts to lose
its freewheeling edge. The global companies move out.
THE CASINO Regulators are unable to control China's big
EFFECT companies, which ignore Hong Kong's financial rules. Market
manipulation and corruption rise.
UNMANAGEABLE With over a million immigrants due to arrive
ECONOMY from China over the next 15 years, education, welfare,
housing, and police come under stress. Hong Kong's budget is
strained, and taxes rise.
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Updated June 15, 1997 by bwwebmaster
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