How did you become involved in working in Hong Kong?

A friend directed me to an opportunity with a start-up investment bank. As I had worked in industry for only brief intervals before and felt that both my teaching and research effectiveness could be greatly enhanced by exposure to the practical side of finance, I requested a leave of absence from Georgia State to spend time with the investment bank. Because the investment bank was in the process of being structured, I thought that working there would be especially valuable because I would be able to observe and participate in very fundamental decision-making opportunities that would not be available with more established organizations.

What were your expectations and surprises regarding differences in culture and business practices?

Given that the finance industry is very internationalized, I was not surprised to see that business practices did not deviate much from those in the United States Whatever differences I did notice were more related to social interactions in a business context. For example, it is considered disrespectful to offer business cards using only one hand.

The only other surprise was the cost of living. Real estate rentals and prices at the time of my arrival in Hong Kong were extremely high. In fact, they were probably much higher than comparable prices and rentals in New York City.

How would you describe Hong Kong and its residents?

Because I arrived in Hong Kong three days before the handover to China, everyone was consumed by issues relating to the transition.

People in Hong Kong appear to be very focused on improving their lot in a material sense, as opposed to Singapore and Malaysia where they are very relaxed. While the drive for material progress appears to unify most of the people I met in Hong Kong, there are tremendous differences among the Chinese people. One set is very westernized and probably as much at home with Western tradition and culture as the traditional Chinese culture. Another group can barely speak English, live in appalling conditions and struggle to survive.

What did you learn from your experiences?

I learned a lot about the practical aspects of the finance industry, especially about the metrics employed to understand and evaluate businesses. What made my situation in Hong Kong especially interesting was that I was able to observe businesses during the worst of the Asian crisis. This gave me tremendous insights into how organizations react to crises and how they evolve when faced with a serious threat of extinction. Further, I also observed first-hand the formation of financial markets, such as the one for the bonds and bank loans of distressed Asian companies.

What are some of the challenges facing China and Hong Kong?

I believe that Hong Kong and China face very different challenges. Hong Kong's biggest challenge is to continue to be a destination of choice for companies wanting to do business with mainland China. As China opens up and becomes more attuned to foreign cultural and business practices, Hong Kong is likely to face competition from a number of Chinese cities, including Shanghai. Given its high cost structure, Hong Kong will have to reinvent itself to compete.