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"Hong Kong Risks Losing Its Role As A Financial Capital," Deutsche Bank Chief Economist Warns

Tyler Durden's picture




 

"Hong Kong clearly has its work cut out holding on to its role as the entry way to [investing in] mainland China," warns Deutsche Bank's Chief Economist Taimur Baig as he reflects on the civil disobedience this weekend. Even before this weekend's riots, Baig believes "Hong Kong will have to shape up," and while his base case suggests the unrest will not have a major detrimental effect on the economy per se, he fears it will add to investor angst - and along with macro uncertainty - leaves Hong Kong more precariously positioned than Singapore as Asia's major financial capital.

 

 

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Mon, 09/29/2014 - 13:42 | 5267540 laomei
laomei's picture

aaand then shanghai takes over and hong kong goes back to being a fishing village.

Mon, 09/29/2014 - 13:45 | 5267568 pods
pods's picture

Isn't Douche bank the most over leveraged bank on the planet?

So 100k protestors is going to ruin your standing in the financial sector, but 100 gabzillion in derivatives should not.

Got it.

pods

Mon, 09/29/2014 - 13:53 | 5267612 Latina Lover
Latina Lover's picture

We now have confirmation from the banksters that China is being targeted for regime change via another phony color revolution.  Unfortunately for the protestors, Xi will give the pigs a message that the monkeys will never forget.

Mon, 09/29/2014 - 14:11 | 5267664 Divided States ...
Divided States of America's picture

HK will just be a tourist shopping site for the rich Chinese.....its such a great place to live...if youre loaded. The young people in HK should start doing something before they have to do guided tours or scoop ice cream for the rich Chinese tourists who go visit there.

Real tough luck for the people who stayed behind in HK...knowing darn well that China most likely wont and cant keep their promise of autonomy....and with immigration abroad just getting harder and harder for people nowadays...I am sure there will be mail order brides from HK now for the desperate females who want OUT of there.

Mon, 09/29/2014 - 14:19 | 5267735 ersatz007
ersatz007's picture

what's crazy is that i'm reading your post and just to the right is an ad for 'Chinese-Lady.com' ... 

Mon, 09/29/2014 - 14:21 | 5267741 Divided States ...
Divided States of America's picture

LOL...it will soon be Hong-Konglady.com....especially if you love flat chested Asians with an attitude...HK is well know for those.

Mon, 09/29/2014 - 14:27 | 5267764 ersatz007
ersatz007's picture

what's crazy is that i'm reading your post and just to the right is an ad for 'Chinese-Lady.com' ... 

Mon, 09/29/2014 - 13:54 | 5267630 Mike in GA
Mike in GA's picture

HK is protesting for freedom from the totalitarians on the mainland and DB is worried about order execution.

Same here in the US...vote for $$ not principle.  This is why freedom is doomed. 

Mon, 09/29/2014 - 14:41 | 5267810 Milestones
Milestones's picture

Bingo! Nail meet hammer. This is about as stupid an article I've read here.            Milestones

Mon, 09/29/2014 - 13:54 | 5267628 Bloppy
Bloppy's picture

Bingo - maybe this China's goal, shift it to Shanghai. But it will go to Singapore instead.

Also: Wet wipes banned at halal KFC

Mon, 09/29/2014 - 14:08 | 5267693 anita22
anita22's picture

That's what happens when the government decides to enter into something that really works well: it trashes it. At least we'll libertarians have Singapore (and New Zealand, maybe?) yet.

Mon, 09/29/2014 - 14:37 | 5267797 BigJim
BigJim's picture

The ACT party in NZ got less than 1% of the vote. I think we can safely say Kiwis are as Statist as everyone else in the 'free' world.

Mon, 09/29/2014 - 14:11 | 5267711 Joenobody12
Joenobody12's picture

Ha Ha Ha ! 

Shanghai take over .Ha ha ha .

You mean like Shanghai Husi Food Co. ? Like ruining the expensively cultivated reputation of the US company OSI Group of Aurora ?  

Mon, 09/29/2014 - 15:10 | 5267924 laomei
laomei's picture

if you thought that was bad, you should probably stay clear of the industry in the us... orders from the top afterall.  there are reasons most of the world bans meat from the us.

Tue, 09/30/2014 - 00:01 | 5269607 IronForge
IronForge's picture

That was the Plan from the beginning, wasn't it?

There's less of a need to "go through the middle man" who also backs up foreign connected fifth column movements.

Mon, 09/29/2014 - 13:41 | 5267546 Took Red Pill
Took Red Pill's picture

Speaking of demonstations filmed by drones, check out what John Oliver had to say about them;

http://gizmodo.com/john-oliver-wants-you-to-know-drones-are-terrifying-1...

Mon, 09/29/2014 - 14:08 | 5267697 Jack Burton
Jack Burton's picture

Nice video! Thanks.

Mon, 09/29/2014 - 13:42 | 5267547 i_call_you_my_base
i_call_you_my_base's picture

Banker threats.

Mon, 09/29/2014 - 13:42 | 5267549 yogibear
yogibear's picture

The Wall Street bots don't care. The stock market is hardly down.

Mon, 09/29/2014 - 13:44 | 5267554 FieldingMellish
FieldingMellish's picture

Conform or we won't piss on you.

Mon, 09/29/2014 - 13:44 | 5267561 _disengage_
_disengage_'s picture

You can not beat them at their own game, general boycott/occupy yourself and cut off their funding.

Money talks, bullshit walks.

1. If money is power, why do we spend it so easily on fleeting "goods"?

2. Disengage the thieves' economy on all non-essential functions. (Make food at home and pay rent, but no more going out, netflix, new car, etc (middle-class lifestyle))

3. Deploy your capital today on solutions for tomorrow that require no dollar inputs. (good time to plant fruit trees right now, in a few years you got dollar-free fruit (companion planting instead of chems))

4. Spend you new free-time with loved ones pursuing goals to improve your quality of life.

Mon, 09/29/2014 - 13:45 | 5267577 OldPhart
OldPhart's picture

Does anyone really give a shit what DoucheBank thinks?

Mon, 09/29/2014 - 14:09 | 5267699 anita22
anita22's picture

Isn't it the most broken bank in Germany?

Mon, 09/29/2014 - 13:46 | 5267580 stinkhammer
stinkhammer's picture

warns Douche Bag's Chief Economist Taimur Baig

Mon, 09/29/2014 - 13:51 | 5267604 Cacete de Ouro
Cacete de Ouro's picture

All I can say is phooey - Hong Kong Phooey
http://www.youtube.com/watch?v=Va_Rmpd3PZI

Mon, 09/29/2014 - 13:56 | 5267635 Kirk2NCC1701
Kirk2NCC1701's picture

What, ANOTHER "The Place To Be" that Simon Black recommended*, that's now falling under The Bus?

* Baltic States, Ukraine, Georgia, Lat. Amer., Africa, Australia, Thailand, Hong Kong...

Simon, are you sure that the US Gov is not simply using you as a Leading Indicator of places to target libertarians?  If so, then please recommend that the DC, NY and LA, London and Tel Aviv are "The Places To Be".  [Said with incredulity and a tad of sarcasm]

Mon, 09/29/2014 - 13:56 | 5267639 monkman
monkman's picture

Kowtow or we leave!

Mon, 09/29/2014 - 13:56 | 5267640 The Reich
The Reich's picture

Hongkong here, London there, I DON'T GIVE A SHIT !!!

Mon, 09/29/2014 - 13:57 | 5267648 boeing747
boeing747's picture

UK is fully responsible for hk's finance crisis in 1998.
Right before 1997, hk goverment under UK ruling adopted super loose monetary policy and spent all tax revenues for mega public infrastructure projects. HSBC, Swire Pacific and other UK interests earned big time from that crisis.

Mon, 09/29/2014 - 14:00 | 5267658 pcrs
pcrs's picture

The tree of liberty has to be refreshed once in a while with the blood of tyrants

Mon, 09/29/2014 - 14:03 | 5267671 anita22
anita22's picture

It's like when an article talks about Putin. People in this blog seems sometimes to forget we, here, defend freedom above all.

Calling "pigs" the people who want to defend their own liberty, makes me think if this guy really defends freedom or he is just anti-US (and, as a result, pro-everything-anti-US).

Good point Mike!

Mon, 09/29/2014 - 14:03 | 5267672 Captain Willard
Captain Willard's picture

This douchebag says that HK needs to get its act together or risk losing its private banking anf financial center status? FFS, if they don't protest, they won't have anything at all in a few years. They can already kiss the financial stuff good-bye.

All the rich Chinese are buying up Manhattan and Vancouver and leaving as fast as they can. They are not stopping in Hong Kong except to change planes maybe. 

Mon, 09/29/2014 - 14:07 | 5267684 anita22
anita22's picture

I think the only reason of being of HK is that it was the only truly free place in China. If the Communist Party decides to finish their special status, what'll happen to Hong Kong??

Probably it will stop being the city with the biggest amount of Multi-millionaires.

Mon, 09/29/2014 - 14:06 | 5267687 Jack Burton
Jack Burton's picture

Indeed! What finance capital most craves is a city or state with iron clad security and enforced social peace. London and New York are ideal centers for finance capital being backed by powerful central governmenets. Hong Kong was once backed by the UK, but now it is China who oversees the city state in it's unique position as a member of China. I suspect, in fact I am sure, that the unrest has good reasons for springing up, as these people are used to a western type of freedom after a century as part of the UK, but I also am sure that the USA has deep roots, or should I say, the UK MI6 acting with USA money backing. MI6 has a century of deep experience of Hong Kong, and you can bet the west is interested in spreading unrest to China just as it has blown the east Ukraine up into a full scale civil war, and proxy East West conflict. The USA and UK would love nothing better than to begin to chip away at social harmony inside the Chinese State, Hong Kong is ideal place to start!

Mon, 09/29/2014 - 14:51 | 5267827 sylviasays
sylviasays's picture

"What finance capital most craves is a city or state with iron clad security and enforced social peace." "The USA and UK would love nothing better than to begin to chip away at social harmony inside the Chinese State, Hong Kong is ideal place to start!"

There is "social harmony" inside the Chinese State only because of iron clad security and brutally enforced social peace. The ChiComs don't have racially divided cities like Ferguson and they would never allow their country to be flooded with millions of illegals from third world countries like the USA and UK have. The USA and the UK have been destroyed from within and will never be able to "chip away" at the ChiCom state.

Mon, 09/29/2014 - 15:49 | 5268058 pcrs
pcrs's picture

The reason for London and New York being centres of capital is because of a relative liberty once, which created wealth through investment, which unfortunately created an empire, which burned away and destroyed most of the capital. Downhill from there. The future of capital will not be centres of power, but centres of liberty. Power is what plunders capital.

Mon, 09/29/2014 - 14:07 | 5267689 aliki
aliki's picture

but is it enough to get FXI to convicingly break 38

Mon, 09/29/2014 - 14:21 | 5267739 Son of Loki
Son of Loki's picture

This police action is a direct slap in the face to Xi Jingping who was working hard to increase ties with Taiwan. That ain't gonna happen in my lifetime after this HK police stuff. This has to scare the crap out of Taiwanese and Singaporeans. My guess is the police acted on orders from the far right to embarrass Jingping and try to scare people back into the Communist Party. That probably ain't going to happen either.

 

Mainlanders flood with their money into HK to get away from the Communist Party, not to embrace it.

Mon, 09/29/2014 - 14:21 | 5267743 In.Sip.ient
In.Sip.ient's picture

Finance capital prefers a state with natural security

and a population inclined to social peace.

 

Canada(?) Anyone?

 

Might add Australia and NZ in there as well...

 

Helps when you don't have to rely on politicos so much!

 

Mon, 09/29/2014 - 14:27 | 5267766 ajax
ajax's picture

 

 

REPEAL FATCA

Mon, 09/29/2014 - 14:23 | 5267753 SilverIsMoney
SilverIsMoney's picture

Starting to wonder if the US isn't behind this...

Mon, 09/29/2014 - 14:37 | 5267796 q99x2
q99x2's picture

Can't have FRAUD in a democratic society. Go HK.

Arrest Jamie Dimon if he ever shows up on your shores.

Mon, 09/29/2014 - 14:36 | 5267798 vegas
vegas's picture

So now I know why St. Louis isn't a financial hub; it's because of Ferguson right?

 

www.traderzoo.mobi

Mon, 09/29/2014 - 14:50 | 5267850 Bunga Bunga
Bunga Bunga's picture

Douche Bank, go to Communist China, problem solved.

Mon, 09/29/2014 - 14:51 | 5267852 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

It is not like they were talking the same book about Wall Street when Occupy Wall Street was protesting.

Speaking of them you'd think they would be roaring back to life and clogging up the streets by Goldman Sachs and the Federal Reserve Bank of NY protesting over this latest regulator fiasco so all them Congress folks running for re-election calling for hearings into the American Life tapes can get their photo ops for midterms.

Mon, 09/29/2014 - 15:09 | 5267923 reader2010
reader2010's picture

WW3 stated simultaneously on both the Russian and Chinese front. 

Mon, 09/29/2014 - 15:29 | 5267989 Armed Resistance
Armed Resistance's picture

Says the guy holding $75 TRILLION in derrivatives exposure.  Pot, meet kettle.  Kettle, pot...

Mon, 09/29/2014 - 17:11 | 5268294 The Abstraction...
The Abstraction of Justice's picture

Exactly. Frankfurt is Deutsche Bank town, everyone and everything is owned by them.

Mon, 09/29/2014 - 17:54 | 5268424 Coldfire
Coldfire's picture

This culturally ignorant court economist has it exactly backwards. If Hong Kong does not protest and win, China's capital formation mechanism goes down the drain. China needs Hong Kong more than Hong Kong needs China. And Hong Kong needs a CP-dominated China like a hole in the head. Crawl back into your derivatives bunker, Baig.

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