Prof. Grimes on Hong Kong Protests
Prof. William Grimes of the Frederick S. Pardee School of Global Studies at Boston University believes that ongoing citizen protests in Hong Kong have the potential to seriously change the relationship between mainland China and Hong Kong, but they are not likely to change Hong Kong’s status as one of the world’s most important financial markets and global business centers.
Speaking to International Business Times (October 1, 2014) Prof. Grimes explains why Hong Kong has such a special status as a financial market, and why it is difficult to dislodge that status:
“Hong Kong has very low transaction costs, a very sophisticated financial system, and is highly technically developed… Geographically, it is a good place for intermediating regional capital flows.”
Moreover, Prof. Grimes explains, no financial center within China has the ability to rival Hong Kong’s market clout: “Because China maintains closed markets and is a young financial system, it just isn’t a major competitor yet,”
Read the full story from the International Business Times here.