Last week, the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region for the first time creatively hosted a virtual reception to celebrate the Chinese New Year amid the COVID-19 pandemic. In the video clip, Director Luo Huining not only gave his warm greetings to residents of Hong Kong but also summarized major events that happened in Hong Kong last year. He specifically mentioned the “four unforgettable moments” since he took office a year ago. While the enactment of the National Security Law for Hong Kong, the arrival of mainland specialists to conduct universal community novel coronavirus testing and the New Year’s Eve gala are moments of comfort and relief, his trip to Siu Sai Wan and Sham Shui Po visiting the elderly and families living in subdivided flats during the National Day and Mid-Autumn Festival last year is thought-provoking.
One visit was enough for Luo to see some of Hong Kong’s deep-rooted problems with his own eyes when he sat down with a low-income family and talked about their daily life. For many years the city has been mired in political disputes that distract us from the plight of grassroots households. Between July 1997 and the end of 2019, the average income of Hong Kong residents has lagged behind economic growth, with the distribution of wealth disproportionately tilting toward the high-income individuals. Structural inequality as a direct result of this lopsided wealth distribution has been solidified instead of broken up over the years. According to the median income analyzed by decile groups of the working population in 2016, the median income of the highest-income group was HK$65,000 (US$8,385) while that of the lowest-income group was only HK$4,160, registering a staggering difference of 14.6 times between the two. In Hong Kong richer people account for 20 percent of the total population but possess 55 percent of the total worth of private assets. This situation did not change much between 1996 and 2016, with the median income of the two lowest-income groups increased by only 30 percent, whereas that of the two highest-income groups increased by 73.3 percent and 75 percent respectively.
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Income inequality is only half of the problem, with the other half being the chronic short supply of affordable housing. The shortage of land supply means housing demand far exceeds supply, a scenario affecting not only the private property market, but also public housing for grassroots families. According to official data, the average waiting time for public rental housing (PRH) had reached 5.6 years by the end of September 2020, well above the Housing Authority’s target of “moving in after three years of waiting”. At the time, there were about 156,400 general applications for PRH and approximately 103,600 non-elderly one-person applications under the Quota and Points System. Not able to see the prospect of moving into public housing, grassroots families have no choice but to live in sub-divided units (SDUs). According to the 2016 Population By-census, some 27,100 flats were subdivided in Hong Kong, in which 91,800 households or 209,700 persons live. On the other hand, 66.9 percent of those households live in SDUs of seven to less than 13 square meters in usable floor area. The median floor area of residential units was 10.0 square meters, while the median per capita floor area of accommodation was 5.3 square meters.
Upon hearing Luo’s four predictions, the public should and would expect further efforts from the central government in helping Hong Kong overcome major obstacles going forward and gain confidence along the way
The two above-mentioned deep-seated problems are revealed in the footage of Luo’s home visits. Realizing the plight of the grassroots, Luo commented that he was “fully aware that we should waste no time reviving the economy, and relieving people’s hardship”. His remark is an encouraging sign for Hong Kong because Luo was addressing the concerns of the Hong Kong community as head of the Liaison Office, which is an extension of the central government in Hong Kong. In April last year, the Hong Kong and Macao Affairs Office of the State Council made it clear that the Liaison Office, as an extension of the central government in Hong Kong, has the authority and responsibility to exercise supervisory power in Hong Kong. Does this supervisory power also apply to deep-seated problems that the SAR government has failed to resolve effectively over the years?
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Luo also mentioned his “four predictions” for the future of Hong Kong. They include “Hong Kong residents’ way of life will not change. Bigger steps will be taken to develop Hong Kong’s economy and improve the livelihood of Hong Kong residents”. His words were undoubtedly reassuring to the grassroots communities in Hong Kong. The virtual reception set an important precedent for the Liaison Office in keeping in touch with Hong Kong society without breaking social-distancing rules, so that local residents can always count on the central authorities for support. Upon hearing Luo’s four predictions, the public should and would expect further efforts from the central government in helping Hong Kong overcome major obstacles going forward and gain confidence along the way.
The author is senior research officer of the One Country Two Systems Research Institute.
The views do not necessarily reflect those of China Daily.
