Hong Kong Notebook: The Economy, and Going Green

[Subway ad, reminding HK residents that 50 cents will be charged for plastic bags -- with handles -- beginning July 7.]

HONG KONG, June 24, 2009 -- It's not difficult to feel the effects of the global recession here. Sit in any coffee shop, bar and talk leads to layoffs and making do with less. Bankers and traders laid off. Civil servants getting pay cuts. Couples eating out less frequently. Cooking and entertaining at home are in vogue here.

I was in a local hotel and I took an elevator with about a dozen folks in their 20s, attending a risk management seminar. They were no doubt networking or trying to boost their skills, resume. But bigger picture, the mood not surprisingly is not as dire as it is in NYC/Wall Street. 

The savings rate is high in China and investors have been scooping up bargain assets -- from equities to real estate. In fact, with stabilization, I hear property owners are taking some properties off the market, hoping to fetch a higher price in a few months.

HONG KONG GOES GREEN

Following other cities like those in Canada, HK will begin charging for plastic bags -- with handles -- beginning next month. The loophole is the handles part, which perplexes me. HK has a land shortage problem and presumably landfill problem as well. 

Related, the city a few days ago tried a "lights off" night for the city's buildings along Victoria Harbor. The iconic skyline went blank for a few minutes. It saved energy but was deemed "gloomy" by some locals. I wonder if HK's daily 8 pm light show along the harbor uses any renewable energy resources.