HONG KONG: The vibrant atmosphere in Hong Kong has returned this month, showcased by a series of exhilarating events—from the energetic Hong Kong Sevens rugby tournament to the esteemed Art Basel international art fair. These events are reigniting the city's cultural and economic vitality.

In addition to the sports and art spectacles, finance has taken center stage with significant gatherings. Recently, the second Milken Institute Global Investors’ Symposium captured the attention of global investors, highlighting Hong Kong’s strategic position as a financial hub. Following that, the second HSBC Global Investment Summit drew finance leaders from around the world, while the World Economic Forum chose Hong Kong for its first event focusing on financial services.

Paul Chan, Hong Kong's Financial Secretary, affirmed the city’s status as a dynamic junction for global finance. "Hong Kong remains one of the world's most open, dynamic and globally connected financial centres," he stated, emphasizing the city's resilience and potential to attract international investment. His remarks come after a visit to Beijing, underscoring the importance of maintaining strong ties with mainland China as a pathway for growth.

Yet, despite the buzz, concerns linger over Hong Kong’s economic recovery, which has been sluggish post-COVID-19, particularly in sectors like tourism. Local residents often prefer to spend their money across the border in Shenzhen, adding to domestic consumption worries. Furthermore, the growing influence of Beijing over the city under the national security law has left some investors apprehensive about Hong Kong's level of autonomy and its long-term implications for business.

While Hong Kong's property market continues to struggle, the Hang Seng Index has shown resilience, emerging as the top-performing market globally since President Trump took office in January. Oliver Weisberg, CEO of Blue Pool Capital, described Hong Kong as "a global broker," emphasizing its efficiency as a business hub and discussing opportunities in diverse sectors like education, healthcare, and access to the Greater Bay Area during an investor panel discussion.

Goodwin Gaw, chairman of Gaw Capital Partners, argued that negative perceptions of Hong Kong, particularly in Western media, do not reflect the city's capabilities. "Hong Kong is the easiest window for the world to invest in China and for Chinese companies to access global capital," he asserted, suggesting that the city just needs a bit of polish to reclaim its glory.

However, caution is warranted. Analysts like Steven Okun, CEO of APAC Advisors, identify serious risks tied to U.S.-China relations. The Trump administration's tariffs, which now apply to goods from both China and Hong Kong, create an atmosphere of uncertainty that could hinder Hong Kong's business landscape. The sale of two Panama Canal ports from Hong Kong's CK Hutchison to a U.S.-led group is just one example of how blurred lines between these regions could pose challenges.

Some experts advocate a measured approach for businesses. Vaidhyanadhan Iyer, a senior partner at corporate law firm AZB & Partners, noted the ongoing tariff wars as a source of unpredictability. Meanwhile, Gaw suggested viewing these tariffs as "solvable issues," encouraging investors to keep a long-term perspective amid the challenges.

Ultimately, despite the complexities and geopolitical vulnerabilities, Hong Kong's unique role as a bridge between China and the rest of the world remains clear. The city's resilient spirit suggests that it may once again shine as a preeminent global financial and cultural hub.