The Changing Investment Environment And Strategies In Post-1997 Hong Kong: Responses To The Transfer Of Sovereignty

Abstract

The sovereignty transfer of Hong Kong to China in 1997 has inevitably affected perceptions of entrepreneurs and local business executives/managers toward the investment climate and investment strategies. Business Views remain quite optimistic through the year 2000. But, a modest amount of risk premium has been incorporated in computing the expected rate of return and in designing the firms investment strategies. In the year 2000, increasing concerns were shown towards government bureaucracy and political climate in Hong Kong.