Hong Kong (2): o novo administrador aceito por Pequim

Hong Kong’s New Chief Vows to Create More Equitable Society

Kelvin Wong and Simon Lee

Bloomberg News, July 1st, 2012

Leung Chun-ying, the former property surveyor who was a surprise choice to be Hong Kong’s new leader, vowed to boost public housing and build a “more equitable society” as he was sworn in today.

Leung, 57, took office in a ceremony attended by Chinese President Hu Jintao, who said Hong Kong should expand cooperation with China and develop a harmonious society. The leaders were also celebrating the 15th anniversary of the former British colony’s return to Beijing’s control.

The challenges facing Leung include tackling Asia’s biggest wealth gap, now the worst in Hong Kong since records started being kept in 1971, and demands for direct leadership elections by 2017. At the same time, China seeks to bind the city’s economy more closely to the mainland’s and maintain stability ahead of its own once-a-decade leadership transition this year.

“Housing tops the list of livelihood issues that are of public concern,” Leung said in Mandarin, adding that he’d seek to meet the expectations of both the central government and the people. “We need to provide more public housing and assist low- income groups to secure flats.”

With his term only beginning, Leung already faces a challenge to his authority. The Democratic Party says Leung misled the public about illegal structures built at his home, and is seeking to overturn his election in March. About 70 percent of 529 people surveyed by the University of Hong Kong on June 25 and 26 said perception of Leung’s integrity was negatively impacted by the findings.

Government’s Ear

“C.Y. does have the ears of central government, but even central government is going to find it difficult to support a chief executive whose credibility in the eyes of the Hong Kong community is tarnished even before he takes office,” said Anson Chan, former chief secretary under Tung Chee-hwa.

Leung, who said last month he was “disappointed in himself” over the structures, must restore the Hong Kong people’s trust in him while he also fosters closer ties with Beijing, which backed his candidacy.

The latest allegations may make it more difficult for Leung to restore the public’s trust in the city’s leadership after his predecessor, Donald Tsang, acknowledged taking trips on yachts and planes owned by billionaire businessmen. He must also win over tycoons including Li Ka-shing, Asia’s richest man and founder of Cheung Kong Holdings Ltd. (1), who had supported a rival for the chief executive position.

Speaking Mandarin

Leung delivered his speech in Mandarin even though the majority of Hong Kongers speak Cantonese, the official language along with English. He said he will seek to develop Hong Kong’s economy, promote democracy and build a “more equitable society.”

Hours after the ceremony, protesters began to gather in central Hong Kong for a march held on the handover anniversary each year. As many as 100,000 protesters may take to the streets, according to organizers, and will call on Leung to introduce plans for full democracy in 2017, Eric Lai, a member of the Civil Human Rights Front, said in an interview.

As Hu delivered his speech at the ceremony, a heckler shouted that China must end one party rule. Security guards removed the man from the event and Hu didn’t acknowledge him.

‘Tremendous Achievement’

“While we recognize Hong Kong’s tremendous achievement in the 15 years since the handover, there still exists much deep- rooted conflict and issues in the society,” Hu said in his speech. “Hong Kong needs to take part in the rapid economic development of the motherland, to deepen and widen mutual cooperation and interaction.”

Tsang, 67, leaves office after serving as chief executive for seven years. He became chief executive in 2005 after mass protests led his predecessor to quit, and with the economy smaller than when the city was returned to Chinese rule eight years earlier.

While gross domestic product grew 28 percent since then, he wasn’t able to prevent the wealth gap from widening even with the introduction of a minimum wage last May.

Tsang struggled to diversify Hong Kong’s economy, and plans for a bridge linking China, Hong Kong and Macau were delayed by an environmental lawsuit. In March, he apologized for undermining public confidence as the anti-corruption bureau started an investigation into his trips with tycoons.

Growth Forecast

Hong Kong may cut its 1 percent-to-3 percent growth forecast for the year should the euro-zone economy deteriorate, Financial Secretary John Tsang said June 4.

The city will mark the handover anniversary with fireworks, a performance by paratroopers from the People’s Liberation Army, and a show with performances by celebrities including actor Jackie Chan.

Since winning the election in March, Leung has sought to woo the business community, said James Tien, the chairman of the Liberal Party, which supported former Chief Secretary Henry Tang for the top job.

While Leung was elected by a 1,193-member panel comprised of billionaires, lawmakers and professionals, he campaigned on a promise to deliver change for regular people.

“During my term, I will implement policies that meet the expectation of me of both the central government and the people of Hong Kong,” Leung said in his speech. “I will do my best to fulfill my promises.”

Income Inequality

Hong Kong’s Gini coefficient, which measures income inequality, has gained from 0.43 in 1971 to 0.537 in 2011, according to government statistics. A reading of zero means income equality and one complete inequality.

The average gross household income of the poorest 10 percent of Hong Kong’s population fell to HK$2,170 ($280) in 2011 from HK$2,590 in 2001, according to a June 18 report from the Census and Statistics Department. The comparable income for the richest 10 percent advanced to HK$137,480 a month from HK$122,740.

Property prices have advanced more than 80 percent since the start of 2009, according to data compiled by Centaline Property Agency, making Hong Kong the world’s most expensive place to own a home.

To contact the reporters on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net; Simon Lee in Hong Kong at slee936@bloomberg.net

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net

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