Why is Beijing encouraging Hong Kong developers to pursue reforms and megaprojects?

Political analysts said Beijing was concerned that Hong Kong developers’ response to local megaprojects could further undermine investors’ confidence, so a senior central government official took it upon himself to court the private sector on behalf of city officials.

Economic and real estate experts said the central government’s “open” appeal to the local private sector was a rare approach as developers expressed doubts about whether they would heed the advice and risk potential financial losses.

As businessmen, their primary concern is profit and accountability to shareholders, but as patriots they must also bow to Beijing’s displeasure or risk, which some have argued could distort the free-market principles on which the city’s economy is based.

But others said the message from Xia Baolong, director of the Office of Hong Kong and Macau Affairs, was not just about megaprojects but also a direct call for tycoons and businessmen to be more committed to the city’s long-term vision and embrace reforms.

During a full-day meeting in Shenzhen attended by about 30 representatives from real estate developers, chambers of commerce, technology firms and state-owned enterprises operating in the city, Xia called for “concrete” action and urged them to “recognize their responsibilities”.

In his full statement released by the office on Sunday, he urged them to move beyond their traditional advantages and not rely solely on the same old methods to succeed.