The many misleading statements made by Deputy Director of the Hong Kong and Macau Affairs Office Zhang Xiao-ming cannot stand up to the slightest scrutiny.

He has claimed, for example, that Hong Kong’s capital market is not a Hong Kong market but a China and an international market. His rationale is the ratio of market capitalization of all publicly traded companies to GDP is typically around 1:1 in major international financial centers, but the figure for Hong Kong is 1:14, meaning that there is an additional 13 dollars coming from Chinese and international investors.

I am no financial expert, but isn’t it common sense that ‘international financial centers’, by nature, broker major deals by attracting global investment? Do the financial markets in New York and London handle only local money?

Shanghai has failed to achieve its long-time goal of becoming an international financial center precisely because China has restrictions on the influx of foreign capital.

Contrary to Zhang’s claim, Hong Kong’s status as an international financial center is not built on Mainland money. In fact, the reverse is true: private and state owned enterprises of China invest in Hong Kong because Hong Kong is an established international financial center where they can raise capital. If Hong Kong does not already have the infrastructure essential for global financial transactions, including such factors as a robust legal system, the unfettered movement of capital, the abundance of professional expertise, and the free flow of information, would international companies have invested in Hong Kong, and Mainland capital followed suit?

Does Chinese capital come to Hong Kong for the purpose of making Hong Kong an international financial center? Of course not. If money alone can make an international financial center, Communist China will have invested all its capital in Shanghai and make it an international financial center a long time ago. Hong Kong is totally out of the question.

Mainland companies go public in Hong Kong in order to raise funds for their developments in China. They do not bring money to Hong Kong and spend it here. The money raised in Hong Kong are private capital of Hong Kong and international investors who hope to profit from their investments. It is hardly charity donation. Zhang, however, sees the funds raised through Mainland companies’ equity offerings as Chinese money. Such ignorance is extraordinary.

When Communist China first launched its reform and opening-up policy, it was in a miserable plight. Hong Kong capitalists were the first to invest in China and were the driving force behind China’s economic growth. Zhang has forgotten the history. Instead of being grateful to Hong Kong, he has casted himself as Hong Kong’s savior.

We are going to see who plays a key role in determining Hong Kong’s status as an international financial center very soon. The United States is considering sanctions against Hong Kong over the proposed national security law. If the Americans are serious, Zhang will get his chance to ‘save’ Hong Kong.

(Ngan Shun Kau is a veteran publisher and writer. His publications and works are award-winning.)

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