Hong Kong losing its edge as governance standards slip

Donald Tsang once pledged to make Hong Kong a “paragon of corporate governance”. But, more than a decade later, some critics say the city is in danger of losing its competitive advantage as the improvement in standards has failed to live up to the promise.

A new report into corporate governance in Asia, released yesterday, showed that Hong Kong has slipped below Singapore as the region’s top-ranked market not including Australia for investor protections. Published by the Asian Corporate Governance Association ACGA and CLSA, the report highlights a weakening commitment to reform in several markets, particularly in North Asia.

The problems in Hong Kong are all-too...