Hong Kong's economy is shaky. Everyone knows that. But its not only APMF columnist Frank Yu who is upbeat about a Hong Kong that can say Yes...

In Business Week's A Cheer for Hong Kong, Really, the report concludes that "..the economy is in trouble, with the unemployment rate at a record high of 6.7% and likely to continue rising in the months ahead.

Still, when you consider what many people feared would happen once the British set sail and the communists came marching into town, Hong Kong isn't such a bad place. That's worth remembering, even after the time-out ends..."

Pummelled by the Asian Crisis and the international tourism crisis, after a chageover to China that was inevitable, but also fraught with brand perception problems, Hong Kong must get used to a changed role. Not quite as elegant, not quite as priveleged as before. But if native Hong Kong entrepreneurism is really an actuality, rather than built out of their special place in the world and a nice helping of protection, it will cope, adapt and survive just as their Chinese expatriate brothers have in a multitude of countries world wide.

Our prediction is that it will prevail, and the next generation of Hong Kong business leaders will be relatively less wealthy, but eventually will include a broader group than those representing the present Hong Kong business elite.

See also An Insider's Take on Hong Kong's Tomorrow