Errrhh... No. It's not true. No way Hong Kong is a "Zombie economy".
I'm posting the video above as what the Chinese call "a negative example". It's the most untruthful, the most lying, the most ... just the most off-the-planet Disinformation and Misinformation that I've ever seen. In any video. Anywhere.
And that's from me, who's no fan of the China Communist Party. Hong Kong is jsut not like they (mis)represent. And, By the way, I do know Hong Kong in previous difficult times. During the 1997 financial crisis. During the 2008 Financial Crisis. And during the Covid lockdown. So I know what it looks like when shops everwhere are closed down and the city is struggling. That's not the case now. No way.
I’ve lived in Hong Kong since 1990, so when I watched that China Observer video claiming the city has collapsed into a “zombie economy,” I knew straight away it was a very negative, one-sided take that doesn’t match the place I see every day. It’s still alive, vibrant, and far from finished. The real problem is the factual errors that undermine the whole story.
First, the video says the Hong Kong dollar “no longer can be converted to $US.” That’s simply wrong. The Linked Exchange Rate System has been rock-solid since 1983. The HKMA still guarantees full convertibility at around 7.8 to the dollar. You can walk into any bank or use any forex app today and it works exactly as it always has. No capital controls, no change.
Second, the claim that “half a million flee” suggests an ongoing mass exodus. Yes, there was significant emigration after 2019 and COVID, but the numbers are not a current collapse. Official data show the population has stabilised around 7.5 million with net inflows from talent schemes and mainland arrivals. It’s not the uncontrolled flight the video paints. We know many friends who departed to Europe in the wake of Covid and the 2019 riots, but who have since returned.
Third, “9 out of 10 shops empty” and neon lights “flickering out like dominoes” is pure exaggeration. Vacancy rates in core districts like Causeway Bay and Mong Kok are around 8–12 per cent — elevated, yes, but nowhere near 90 per cent. Retail sales have been recovering and new tenants are moving in. Again, it's nothing like the downturns of 1997, 2008 and 2020.
The video downplays Hong Kong’s financial strength. It ignores that we’re on track to be the world’s largest IPO market in 2026, with HK$110 billion already raised in Q1 alone. And capital is still flowing in — including big money from the Middle East shifting to Hong Kong, not just Singapore.
These aren’t small slips. They turn real challenges (higher costs, cross-border spending) into a false narrative of total collapse. Just because some sources are paranoid about Beijing doesn’t make every claim accurate. From where I stand after 34 years here, Hong Kong is adapting and still very much open for business.
ADDED: the "China Observer" channel is run by Falun Gong-affiliated groups, so it's no surprise their take on China is the most negative, the most anti, the most vitriolic to the CCP.
First, the video says the Hong Kong dollar “no longer can be converted to $US.” That’s simply wrong. The Linked Exchange Rate System has been rock-solid since 1983. The HKMA still guarantees full convertibility at around 7.8 to the dollar. You can walk into any bank or use any forex app today and it works exactly as it always has. No capital controls, no change.
Second, the claim that “half a million flee” suggests an ongoing mass exodus. Yes, there was significant emigration after 2019 and COVID, but the numbers are not a current collapse. Official data show the population has stabilised around 7.5 million with net inflows from talent schemes and mainland arrivals. It’s not the uncontrolled flight the video paints. We know many friends who departed to Europe in the wake of Covid and the 2019 riots, but who have since returned.
Third, “9 out of 10 shops empty” and neon lights “flickering out like dominoes” is pure exaggeration. Vacancy rates in core districts like Causeway Bay and Mong Kok are around 8–12 per cent — elevated, yes, but nowhere near 90 per cent. Retail sales have been recovering and new tenants are moving in. Again, it's nothing like the downturns of 1997, 2008 and 2020.
The video downplays Hong Kong’s financial strength. It ignores that we’re on track to be the world’s largest IPO market in 2026, with HK$110 billion already raised in Q1 alone. And capital is still flowing in — including big money from the Middle East shifting to Hong Kong, not just Singapore.
These aren’t small slips. They turn real challenges (higher costs, cross-border spending) into a false narrative of total collapse. Just because some sources are paranoid about Beijing doesn’t make every claim accurate. From where I stand after 34 years here, Hong Kong is adapting and still very much open for business.
ADDED: the "China Observer" channel is run by Falun Gong-affiliated groups, so it's no surprise their take on China is the most negative, the most anti, the most vitriolic to the CCP.
