Red capital in Hong Kong

Wang-Kaeding, Heidi; Kaeding, Malte Philipp

Abstract

Purpose
The purpose of this paper is threefold: first, to recount the scale, composition and agents of red capital in Hong Kong; second, to conceptualise the peculiarity of red capital; and third, to explore the impact of red capital on the political and economic institutional setup in Hong Kong.

Design/methodology/approach
The paper consults the comparative capitalism literature to conceptualise the phenomenon of red capital. The paper gathers data from Hong Kong Stock Exchange and indices to provide an overview of red capital. Furthermore, the case study of 2016 Legislative Election is deployed to investigate the mechanisms of red capital’s influence. The paper concludes with a summary of how red capital may challenge the validity of the “One Country, Two Systems” framework.

Findings
This paper argues that red capital replicates China’s state–capital nexus in Hong Kong and morphs the game of competition in favour of Chinese nationally controlled companies. In tandem with the emerging visibility of the party–state in Hong Kong’s economic sphere, the authors observe attempts of Chinese economic actors to compromise democratic institutions, deemed obstacles to state control.

Originality/value
This paper is the first attempt to systematically embed the discussion of red capital into comparative capitalism literature. This study provides conceptual tools to examine why red capital could pose a threat to liberal societies such as Hong Kong. Through this paper, we introduce a novel research agenda to scrutinise capital from authoritarian states and investigate how the capital is changing the political infrastructure shaped by liberal principles and values.

Citation

Wang-Kaeding, H., & Kaeding, M. P. (2019). Red capital in Hong Kong. Asian Education and Development Studies, 8(2), 149-160. https://doi.org/10.1108/aeds-02-2018-0032

• Journal Article Type: Article
• Acceptance Date: Nov 28, 2018
• Online Publication Date: Feb 6, 2019
• Publication Date: Mar 28, 2019
• Deposit Date: Jun 7, 2023
• Journal: Asian Education and Development Studies
• Print ISSN: 2046-3162
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• Volume: 8
• Issue: 2
• Pages: 149-160
• DOI: https://doi.org/10.1108/aeds-02-2018-0032
• Keywords: General Social Sciences; Hong Kong; Comparative Capitalism; Red Capital; State-capital nexus