At the arrival of 2026, the happiest thing is to see the "Hong Kong is dead" narrative—proclaimed so loudly by Western voices—die yet again.
Foreign Money Returns Home
The West has written Hong Kong's obituary more times than you can count. They believed the city's return to China should have been its death sentence. American magazine Fortune declared "The Death of Hong Kong" on its 1995 cover—two years before the handover even happened. Hong Kong survived the Asian financial turmoil in the early post-handover years. It survived SARS. Then came 2019's Black Riots, followed by US sanctions on Hong Kong officials in 2020 and the pandemic's hammer blow. Foreign capital fled in an American-orchestrated exodus, with much of it landing in Singapore.
Last February, Stephen Roach—Yale University senior fellow—wrote in the UK's Financial Times with a headline that said it all: "It pains me to say Hong Kong is over." Foreign investors don't just track economic growth when they assess Hong Kong. They watch the stock market. And over the past year, Hong Kong's miraculous stock market comeback has bankrupted the "Hong Kong is dead" theory.
Hong Kong's economy grew an estimated 3.2% in 2025—ranking it among the developed world's top performers. But the stock market performance was getting really interesting. Average daily turnover in the first 11 months hit HK$230.7 billion—a massive 43% jump compared to 2024's same period.
Record-Breaking Fundraising Wins
The Hong Kong Stock Exchange crushed it in 2025. A total of 119 new listings raised HK$285.8 billion—a staggering 220% year-on-year increase and the highest since 2021. According to KPMG's report, HKEX ranked first globally in fundraising. The New York Stock Exchange and Nasdaq tied for second place. Looking ahead, HKEX's fundraising is estimated to reach HK$300-350 billion in 2026, keeping it among the world's top exchanges.
Sure, Mainland capital is investing in Hong Kong. But foreign capital's return has been the real game-changer behind the stock market's strong performance. According to fund industry insiders, what we're seeing now is only wave one—primarily hedge funds and other medium-to-short-term players. As Hong Kong's trading volumes swell and quality Mainland companies list here, the long-term foreign funds will gradually return. The outlook for Hong Kong stocks continues to look favorable.
America's narrative said Hong Kong's National Security Law would scare capital away. Reality proved exactly the opposite. Hong Kong's stable environment gave Chinese companies the confidence to list here. America's targeting of Chinese concept stocks listed on its exchanges was self-destruction—forcing quality Chinese companies to turn to Hong Kong for listing instead. This made Hong Kong's stock market bigger and stronger, compelling even bearish foreign capital to come back.
Beijing's Seal of Approval
President Xi's remarks when meeting Chief Executive John Lee during his duty visit to Beijing in mid-December reveal what work the central government values in Hong Kong. President Xi opened with praise for the Chief Executive's courage and initiative in leading the SAR government. He highlighted four key achievements: steadfast maintenance of national security, successful Legislative Council elections, proactive integration into national development, and achieving steady economic growth.
President Xi's assessment underscores Beijing's high recognition of Hong Kong's ability to do both—safeguard national security and develop the economy simultaneously. Some Hong Kong people believed that having transitioned "from chaos to governance and then to prosperity," the city should set aside national security to focus on economic development. Reality proved this view wrong. Hong Kong must strike a balance between these seemingly contradictory goals and advance on both fronts at once.
Look at Hong Kong's development over the past five years. The city emerged from Black Riots and the pandemic in 2021, achieving a strong rebound from the bottom in 2023. The return to normalcy brought revenge spending that temporarily elevated market sentiment.
But entering 2024, local consumption patterns underwent structural changes. Hong Kong people shopping across the border diverted local retail spending. The strong Hong Kong dollar—tracking the US dollar—and high interest rates suppressed economic activity, leading to structural adjustment.
By the second half of 2025, Hong Kong entered a phase of moderate recovery. The property market began stabilizing after its decline. With the US starting rate cuts in September, capital supply loosened. Hong Kong can continue along this recovery path in 2026—that's the estimate anyway.
Despite the optimism, Hong Kong people must keep working hard. The many vacant shops you see on the streets tell the story—retail economy pressure remains real. In 2024, Hong Kong's total retail sales value of HK$376.8 billion represented a 7.3% year-on-year decline. That's painful for the retail sector.
Retail's Reversal Ahead
Through October 2025, retail sales values remained comparable to the previous year. But consumption began recovering in the second half—retail sales value rose 3.8% in August, 6% in September, and 6.9% in October. 2025 showed an early decline followed by growth, with accelerating consumption momentum. Retail consumption is expected to reverse its decline in 2026.
During this retail transformation, we Hong Kong people must continue their efforts. Old businesses will still be eliminated—that's inevitable. Strategic adjustments are required. New opportunities must be pursued.
Bottom line: Hong Kong's economic performance in 2025 proves once again that the "Hong Kong is dead" theory dies—one more time. Hong Kong has weathered different shocks repeatedly in the past, emerging reborn each time like a phoenix from the ashes.
Lo Wing Hung
Bastille Commentary
** The blog article is the sole responsibility of the author and does not represent the position of our company. **
"When meat rots, maggots appear; when fish dries, worms breed; when one grows complacent and forgets oneself, disaster follows." These words from Xunzi's chapter "Encouraging Learning" could not be more apt as a description of America's Epstein scandal. No one could have imagined that the American system had decayed to such a degree.
During the recent Winter Olympics, Western reporters pressed Eileen Gu – who competed for China – for her views on the Jimmy Lai case and the so-called Xinjiang genocide. When she declined to comment, she was savaged by American television hosts. The irony is glaring: Americans fixate on an alleged Xinjiang genocide that exists only in fiction, yet turn a blind eye to the Epstein scandal erupting right before their eyes. Why did no reporter press Eileen Gu for her views on the Epstein case?
Former Prince Andrew of the United Kingdom has finally been arrested. The British royal family had long known of Andrew's criminal involvement in the Epstein affairs, yet only distanced themselves from him in October last year – and the government has only now taken action. How remarkably swift. Had they acted with the same urgency they showed over the Jimmy Lai case, Prince Andrew would surely be behind bars already. The ancient saying – "the law does not reach the privileged; propriety does not extend to the common folk" – finds yet another confirmation in the West.
America has partially declassified over three million pages of documents related to the Epstein case. While the files appear to give the Trump administration some leeway, the contents are already horrifying. The documents implicate sitting and former American presidents, European royalty, business titans, religious leaders, and leading academics – the filth on display is truly beyond description.
We see that Thorbjørn Jagland – former Prime Minister of Norway and former chairman of the Norwegian Nobel Committee – continued to maintain close ties with Epstein even after his 2008 conviction, to the point where Epstein could effectively influence who received the Nobel Prize. We also see how Larry Summers – former US Treasury Secretary and former president of Harvard University – discussed with Epstein the art of womanising.
Even more shocking is that among those closely associated with Epstein was Noam Chomsky, widely regarded as the father of American linguistics. Long considered a public intellectual – a philosopher who spent his entire life teaching people how to challenge the powerful – Chomsky himself turns out to be one of the very corrupt elites he claimed to oppose. The Dalai Lama is also part of this picture. Given that Western journalists show such keen interest in Xinjiang, one wonders why they show no similar zeal for Tibet – or for relentlessly pursuing the scandal surrounding the Dalai Lama's connections to Epstein.
The shocking secrets unearthed by the Epstein case go far beyond the mere operation of a prostitution ring.
First – Even Worse Crimes
The public's greatest suspicion surrounding the Epstein case is this: while the scandal exposed that Epstein used underage girls for prostitution on his private island – known as "Lolita Island" – those powerful men involved could have easily arranged their own channels had they simply wanted to pay for sex. There was no need for such elaborate orchestration.
According to a source who was incarcerated alongside Epstein in the United States, what truly drew America's powerful elites to Epstein was not his sex operation, but his promise of eternal youth. While stem cell therapies have long been banned in America, academic research had apparently shown that injections of stem cell extracts could restore youthful vitality. The rumour goes that Epstein arranged for these elites to father children with the girls on the island, then extract stem cells from their own biological offspring and inject them into themselves – since the children shared their DNA, there would be no immune rejection.
This same source also claimed that just days before Epstein's so-called "suicide," he had spoken with Epstein, who was in high spirits with absolutely no signs of suicidal intent – lending weight to the suspicion that Epstein “was suicided."
With this explosive secret now in the open, and with Epstein dead and vast quantities of evidence suppressed by US authorities, the matter has become an unsolvable case.
However, emails released by the US Department of Justice show that Epstein generously funded Harvard University, much of it directed at biological research – including work by renowned genomics pioneer George Church. Church had outlined to Epstein a research programme totalling US$10 million, to be implemented across 10 phases. Among the projects was one called "Supercentenarianstudy.com" (a centenarian research project), alongside research into creating virus-resistant animals through gene editing, reversing the ageing process, and producing "cold-resistant elephants." It is clear that Epstein had an intense interest in age reversal.
If this scheme – harvesting stem cells from the elites' own biological offspring – were true, every powerful individual who participated would have committed murder and numerous other grave crimes. With evidence of their crimes firmly in the hands of Epstein and the network behind him, manipulating these elites would have been effortless.
Second – Who Is Behind It All?
The same source noted that Epstein was no ordinary figure. His girlfriend came from a foreign intelligence family, and the entire Epstein operation was funded by that country. The whole affair was a deliberate setup – a carefully orchestrated operation built around an island offering sex and the promise of eternal youth, designed to lure the Western elite – primarily Americans – into participating, then using evidence of their crimes to control their political behaviour. This explains why in the United States, regardless of whether it is the Democratic or Republican Party, there is invariably a unified and unconditional stance whenever issues relating to that country arise.
Third – The Collapse of a System
In American Hollywood films, we are always presented with a principled hero who risks his life to fight the powerful and ultimately triumphs – a happy ending. Reality, however, is precisely the opposite: the West tells you to stand on principle while having none of its own.
Britain has now arrested former Prince Andrew on a charge of mere "misconduct in public office" – suspected of leaking British trade documents to Epstein. Even for that offence, he could have been charged under the Official Secrets Act, which would have been far more serious. Of course, Virginia Giuffre – the woman who accused the former prince of sexual assault – reached an out-of-court settlement with him in 2020, collecting US$12 million. Although she never took the case to trial, she continued to allege that the former prince had engaged in sexual relations with eight underage girls who could not speak English – a far graver criminal allegation. Last April, 41-year-old Giuffre "died by suicide" in Australia. This brings to mind the case of Princess Diana, who met her end in a car crash amid royal scandal – a death that many still believe was no ordinary accident.
Britain devotes so much energy to meddling in the Jimmy Lai case and Hong Kong's democratic development, when it should really put its own house in order – abolishing its feudal and rotten monarchy before it can claim to be a truly modern state.
As for America's continuing effort to export its own model of democracy worldwide – that is even more laughable. America need not lecture us on how to prevent the next Epstein scandal, because it appears genuinely impossible to prevent under the American system. What America needs to answer is how to prevent the forces behind the Epstein affair from being exploited to manipulate American politicians – and I cannot think of any satisfactory answer it could give. In a system this rotten, no one is ever held accountable.
As the Gospel of Matthew so aptly puts it: "Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother's eye."
Lo Wing-hung
