Category Archives: Economy and Chinese Capitalisms

What does it mean to be middle class?

What does it mean to be middle class?

Li Xueying
The Straits Times, March 11, 2013

The people of Hong Kong had a good laugh two weeks ago when Financial Secretary John Tsang asserted that he understands well the worries of the middle class – being a member of it himself. The next day, Tsang, who earns HK$302,205 (US$38,957) a month and lives rent-free in a government house at the Peak, generated more derisive mirth as he sought to clarify his statement. What defines the middle class is not so much one’s income but lifestyle, he said.

“I have read articles that say the middle class are people who drink coffee and like French movies. I like movies and tea, so there’s not much difference (in my life) with the lives of the middle class.”

Tsang has a tin ear. Beneath the sniggers was a bitterness over how middle class status – and its entitlements – seems to be slipping many Hong Kongers by.

The Economist magazine, in a report in 2009, characterised the middle class as having a reasonable amount of discretionary income. Diana Farrell of the McKinsey Centre for Government defined it as beginning at the point where people – after paying for basic food and shelter – have a third of income left for consumer goods, health care and education.

In Singapore, there is no official definition, although two National University of Singapore academics, who published a study on the subject last November, defined the middle class as those whose household income falls between S$2,001 and S$5,000 – 40 per cent of the citizen population.

But other criteria – including yes, lifestyle – hold sway as well. In Hong Kong, they include, besides income, accumulated wealth (such as assets like property), social status and lifestyle, says Professor Francis Liu, head of economics at Hong Kong University of Science and Technology.
With the economy today latched to the mainland, one key way of moving up the ladder is to tap the burgeoning Chinese market – from finding ways to supply milk powder to mainland mothers, to seeking business opportunities in the rising Pearl River Delta.

But few want to. A recent survey of post-1990s youth found that 60 per cent are unwilling to work or study on the mainland. Says Hong Kong University sociologist Hayes Tang: “They are less pragmatic. Emotionally they are less attached to – even against – the Chinese identity. Some want the British National Overseas passport which can enhance their cultural status, but is less useful than the Hong Kong Chinese passport for travelling without visa.”

In that sense, he adds, the local identity may pose a “structural obstacle” for the younger generations in becoming socially mobile.

So that leaves lifestyle.

That, by contrast, is relatively easy to attain. HK$100 buys one a middle class night at the movies with a Starbucks latte in hand.


Why are Hong Kongers so unhappy?

Why are Hong Kongers so unhappy?

Li Xueying, The Straits Times

August 29 2012

In Hong Kong, there are nine Fortune Courts, four Rich Courts and three Wealthy Courts – mostly built in the 1980s and 1990s.

In more recent years, in vogue are projects named after overseas locations: Residence Bel-Air, La Maison Du Nord, Sunrise Cannes.

Any marketing student knows that in selling anything, it is essential to pitch it to the aspirations of one’s clientele.So the shift in residential name fads may be a case of evolving aesthetic taste. But it also points to something deeper that has changed in Hong Kong.

A people who used to pride themselves on being go-getters, who believed they could become rich/wealthy/make their fortune if they put their minds to it, have become anxious that they can no longer succeed in Hong Kong. Far better, it seems, to dream of living in a paradise away from here.

According to the Global Barometre of Happiness, just four in 10 Hong Kongers said they felt happy, sending the territory to No. 42 on the list of 58 polled. The most recent survey, the Happy Planet Index, had Hong Kong at No. 102 among 151 – the lowest-ranked Asian entry. Singapore was the second-lowest, at No. 90.Such findings, together with a record number of protests – 6,878 last year – were probably what prompted Taiwanese writer Alice Yang to point to Hong Kongers’ “collective anxiety”.

Her article in the Yazhou Zhoukan, noting the same trend in Taiwan, Singapore and the mainland, was cited by Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday, as he spoke of how the anxiety is due to the “Four Asian Dragons” searching for a new development path after an era of rapid growth.

Hong Kongers are down in the dumps for a variety of reasons.

Material success – and having more of it compared with one’s peers – has always been key to happiness in Hong Kong, noted Hayes Tang, a sociologist from Hong Kong University (HKU).

But this Hong Kong dream is being thwarted by structural obstacles, most notably the dominance of vested property and banking interests in the economy, and by extension their hold on the government, given that half its revenue comes from land sales.

On a more visceral level is Hong Kongers’ sense of powerlessness over their destiny. Delays in implementing universal suffrage have deepened this angst, as has having to adjust to being “just another southern Chinese city”.A new path for Hong Kong means fixing all these various issues. There are no easy answers: For instance, would Hong Kongers give up their status as the world’s freest economy to prevent foreigners from buying their homes? Would they pay higher taxes to shake off the shackles of the property developers?

Reacting to the foreign influx

Reacting to the foreign influx

More people are crossing borders to live and work in another country. While they might help plug gaps in their host countries’ labour force, their presence in large numbers can also be a strain on public resources and trigger local resentment. Governments have responded in various ways, and some have cut back on rights for foreigners, as The Straits Times’ correspondents found.

By Li Xueying, The Straits Times, 2 Jun 2012

Subscribers of The Straits Times can view the original report in full at

BRITISH-BORN Alex Lombardo, 46, has called Kuala Lumpur his home for six years. He has long got the hang of local lingo like ‘alamak’, mastered fiery sambal belachan and last year, settled down with his Malaysian wife, a freelance writer.

But when the couple went shopping for an apartment, Mr Lombardo, who is also a writer, found that he would have to hew to a new restriction: Like all foreigners, he can buy only more expensive property valued at at least RM500,000 (S$205,000) – up from RM250,000 two years ago.


Across the Causeway, something similar is brewing. Over the past year, Singapore has been sharpening the distinctions between citizens, permanent residents (PRs) and non-resident foreigners, in response to growing disgruntlement among Singaporeans over the influx of foreigners.

In recent months, this stance has extended from education (priority will be given to Singaporean pupils enrolling in Primary 1) to entry to tourist attractions (Singaporeans will pay $20 to enter the new Gardens by the Bay; foreigners $28).

Across the world, other governments are taking steps in the same direction.

In Australia, for instance, non-citizens have seen their entitlements, particularly access to health benefits and social security, shrink. From the late 1990s, PRs have had to wait two years before they can claim unemployment benefits. There is also a 10-year wait for disability handouts.

Globally, more people are crossing borders – an estimated one in every 35 people at the beginning of the 21st century was an international migrant. At play are two factors: globalisation, propelling labour to follow the flow of capital and goods; and demographics, which has forced countries with ageing labour forces to open their doors to foreigners.

But this also has domestic populaces baulking at the increased strain that public resources are coming under. In Britain, for instance, public housing is open to all, including foreigners. There are no restrictions, so long as they fulfil needs-based criteria such as low income levels, and are legally settled.

But with five million people on the waiting list, the scheme is now under debate, with Mr Frank Field, a senior MP from the opposition Labour Party, preparing to table a Bill that gives priority to citizens.

Hong Kong has also seen a reversal in a specific area in recent weeks following the election of Chief Executive-elect Leung Chun Ying. Traditionally liberal in extending public services to foreigners, whether PRs or non-PRs, Hong Kong – bowing to public pressure – will next year ban mainland Chinese mothers from giving birth there unless they are married to a local.

Currently, they are entitled to do so, with their babies reaping benefits such as permanent residency, subsidised health care and free education.

This has given rise to what sociologist Hayes Tang of the University of Hong Kong describes as ‘the discontent of Hong Kongers that mainlanders enjoy the benefits at the expense of Hong Kong taxpayers’.

‘Culturally, the different habits of mainlanders and Hong Kong residents also pose some ‘cultural shock’ to Hong Kongers, whose public space has been transformed due to the large number of mainland tourists and migrants in Hong Kong,’ he adds.

In Japan for instance, where only 1.5 per cent of the 128 million population are foreigners, the latter enjoy privileges similar to the locals. Foreigners can enrol in the national medical insurance scheme and pay only 30 per cent of medical bills, just like the Japanese. They are also allowed to buy property of any sort, even land.

China, which also has minuscule benefits for its 600,000 foreigners, is also mulling over giving them more, as part of overall efforts to attract foreign talent. In April, a Ministry of Human Resources and Social Security spokesman said it will provide ‘effective social security to an increasing number of foreigners who stay permanently and enable them to enjoy equal treatment’. He did not give details.

New Book: Hong Kong Movers and Stayers: Narratives of Family Migration

Hong Kong Movers and Stayers: Narratives of Family Migration

Book Talk
Speaker: Professor Janet W. Salaff (University of Toronto)
Moderator: Professor Lui Tai-lok

Date: 13 May 2010 (Thursday)
Time: 7:15-9:00 pm
Venue: Special Collections, 1/F Main Library, University of Hong Kong

Language: English


About the Book
An intimate account of what migration means to Hong Kong families
Half a million Hong Kong residents fled their homeland during the thirteen years before Hong Kong was returned to China in 1997–and nearly half of those returned within several years of leaving. Filled with detailed, first-hand stories of nine Hong Kong families over nearly two decades, Hong Kong Movers and Stayers is an exhaustive and intimate look at the forces behind Hong Kong families’ successful and failed efforts at migration and settlement.
This multi-faceted study was begun in 1991, when migration was attributed primarily to the political anxieties of the time and the notion that Hong Kong residents were seeking a better life in the West. Defining migration as a process, not a single act of leaving, Hong Kong Movers and Stayers provides an antidote to ethnocentric and simplistic theories by uncovering migration stories as they relate to social structures and social capital.
With an approach that melds survey analysis, personal biography, and sociology, Hong Kong Movers and Stayers provides a depth of understanding by comparing multiple families and gives voice to the interplay of diverse family roles, gender, and age as motivating factors in migration.

“There is no other study like this in the China migration literature, nor in the literature on emigration from Hong Kong. The thoroughness of this longitudinal research provides a highly nuanced account of how changes in family life over a period of fifteen years have affected motivations and outcomes for migration.”–Nicole Newendorp, author of Uneasy Reunions: Immigration, Citizenship, and Family Life in Post-1997 Hong Kong

About the Authors

Janet W. Salaff is Professor at emerita, the Department of
Sociology, University of Toronto. She received her Ph.D. in 1972 from
the University of California ( Berkeley). She is a visiting scholar,
Centre of Asian studies , University of Hong Kong. She is on the
international editorial board of a number of scholarly journals. Salaff
has studied Chinese family formation and especially the Chinese family
economy throughout her career She started studying Chinese families
while perched in Hong Kong, which got her interested in Hong Kong
itself, especially family life and position of women and men. Her best
known book is WORKING DAUGHTERS OF HONG KONG, which applies
the life study method to this previously overlooked population. This
manuscript was published as a winner of the Arnold and Carolyn Rose
American award to the American Sociological Association. She turned
to international migration research in Hong Kong in 1992 in a project
with SL Wong. The resulting manuscript, which is co-authored along
with A. Greve, is titled, HONG KONG MOVERS AND STAYERS:
NARRATIVES OF FAMILY MIGRATION, University of Illinois press, 2010.
She is currently studying return migration to China.

Siu-lun Wong is a professor of sociology and director of the Centre for Asian Studies at the University of Hong Kong.

Arent Greve is a professor of organization theory at the Norwegian School of Economics and Business Administration in Bergen, Norway.

The World in 2010 Gala Dinner in Hong Kong

The Economist, for the first time in Asia. will present The World in 2010 Gala Dinner in Hong Kong this December. Daniel Franklin, executive editor of The Economist and editor of The World In series, will share his bold and unapologetic predictions for the year ahead. Other visionary leaders drawn from politics, business, science and the arts will also provide an entertaining and insightful view on global issues on the horizon. For details, please visit here.

Hong Kong: Becoming a Chinese Global City

New Book

Hong Kong: Becoming a Chinese Global City
Stephen Chiu and Tai-Lok Lui

This new addition of the Routledge “Asia’s Transformations” series examines the developmental history of Hong Kong, focusing on its rise to the status of a Chinese global city in the world economy. The chapters contain 1. Global Connections: Centre of Chinese Capitalism 2. An Industrial Colony 3. The Building of An International Financial Centre 4. A Divided City 5. Decolonization, Political Restructuring, and Post-Colonial Governance Crisis 6. The Return of the Regional and the National 7. A Chinese Global City? … Read more

Education Hub in Pearl River Delta

City University’s Shenzhen Applied R&D Centres

The City University of Hong Kong has extended its research platform to the PRD through the establishment of applied R&D centres in Shenzhen since 2001. In so doing, the University aims to capitalize on the respective strengths of the PRD and Hong Kong, hoping to contribute to the economic development of both areas. The centres will tap into the talents, facilities and opportunities for commercialization of research outputs available on the Mainland and will help strengthen our collaboration with sister universities, research institutes and business enterprises there. Their overall objectives include developing of advanced technologies, offering training to research staff and students, providing consulting services and commercializing research results.

CUHK Shenzhen Research Institute

CUHK Shenzhen Research Institute, the first research base to be established in the mainland by the Chinese University of Hong Kong, is sited at Shenzhen Virtual University Science Park. On completion at the end of 2010, the 25,000 square meters building of the Institute would serve as a research and training center, providing various degree and non-degree courses in the fields of engineering, management and health care. The Institute will become a centre for collaborative projects with Shenzhen companies, enabling research achievements to be transformed into products.

In its Strategic Plan 2006, five major research areas have been selected and the University strives to complement this breadth of scholarship with focus on them. Two State Key Laboratories had been set up since 2006; two new research institutes will be established in Shenzhen by CUHK.

The HKUST Shenzhen Research Institute

The HKUST Shenzhen Research Institute (SRI) was established in April 2001 as the representative office of the Hong Kong University of Science and Technology (HKUST) in Shenzhen. The University is among the first group of 38 universities that were invited to join the Shenzhen Virtual University Park. Other member universities include top universities in Mainland China, such as Peking University and Tsinghua University etc. SRI assists in the University’s student recruitment efforts in Mainland China, and provides liaison, project management related and other services to the companies and laboratories of HKUST. It serves as the local liaison office of HKUST in Shenzhen to facilitate communication with government departments and other relevant units.

Links to:
Shenzhen Virtual University Park