Letters | Hong Kong’s Carrie Lam is right about ‘two systems’: that’s why she must ask Beijing to extend 2047 deadline

Uncertainty over life post-2047 is at the heart of the Hong Kong protests. Lobbying to extend ‘one country, two systems’ and the rule of law beyond 2047 could help Lam safeguard the city’s capital markets and young people’s future

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Chief Executive Carrie Lam leads the way for delegates from Hong Kong and Macau, as Chinese President Xi Jinping meets representatives from the two special administrative regions, in Beijing in November 2018. Photo: Xinhua

Published: 1:05pm, 3 Nov 2019Updated: 1:05pm, 3 Nov 2019

Chief Executive Carrie Lam Cheng Yuet-ngor in her policy speech emphasised the importance of “one country, two systems” for Hong Kong, but this arrangement comes with an expiry date of 2047.

For Hong Kong youths, the uncertainty over what will happen 28 years on is a very visible concern. The underlying message of the protest movement is loud and clear – Hong Kong’s youth do not want authoritarian China as their overlords post-2047.

I think they would totally agree with Lam on the importance of maintaining “one country, two systems” and the rule of law in Hong Kong post-2047.

Hong Kong’s rule of law is one of the main pillars of its capital markets, globally recognised by international investors. Much capital (bank loans, bonds, equity issues) has been raised by mainland Chinese companies through Hong Kong. It is doubtful whether, under the “rule of man” system, the capital markets of Shanghai and Shenzhen can ever rival that of Hong Kong in terms of appeal to global investors.

Given China’s fast dwindling current account surplus, foreign capital inflows will be increasingly important over the coming years. A vibrant capital market in Hong Kong is therefore very much in China’s strategic long-term interest.

Since the rule of law is the basis for the functioning of a vibrant capital market, there should be a strong argument in favour of a solid extension of the “one country, two systems” arrangement beyond 2047.