In 2017, I had the opportunity to be in Riyadh for the first time ever to attend the Future Investment Initiative (FII) conference.

FII was the country's inaugural flagship event, orchestrated to bring in some of the largest and wealthiest investors, companies and celebrities from around the world. The crown prince spared no expense hosting this multi-day event which was aimed at roping in foreign investment and elevating the Kingdom to the global stage.

It was an effective way to market a nation. In fact, the event was so "high-profile" that it was dubbed “Davos in the desert” by CNBC.

There are many parallel versions of the FII. The APEC summit, China's Boao Forum, and the Saint Petersburg International Economic Forum.

In addition to rubbing shoulders with the who's who in the upper echelons of the business world, it was also an opportunity for attendees to get acquainted with the local environment and find out what the city has to offer as a destination for investment.

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Hong Kong had always synonymous with some of the largest financial conferences in the region.

Coined as the "gateway to China", the city boasts of a highly efficient transport infrastructure, conducive for business travelers from all over the world to stop by for a few days of meetings.

No one needs to plan ahead to be in Hong Kong. Hundreds of flights arrive and depart the city every day. An efficient customs clearance and a high-speed train connecting the airport to the city centre in 20 minutes, means that one can get in the morning and fly out at night.

Work aside, there was always something to do in town: Bars, cultural festivals, concerts, business conferences, good food and shopping. Hong Kong is so cosmopolitan that there would almost always be an occasion for business meetings in the city. Almost every company with a meaningful global presence in Asia has an outpost in Hong Kong.

At one point of time the city was even leading the charge in technology, convening the "most brilliant minds in international tech" at the annual RISE conference, a must-go event for any company that wants to make a serious impact to the tech scene in Asia.

But there is less reason to get into Hong Kong today.

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Aside from the fact that many companies and conferences have shifted away, a string of covid testing procedures awaits visitors upon arrival at the airport. Compared to the past, getting into Hong Kong today has become a meticulously curated trip for many travelers.

Despite efforts by the new HK chief executive to address the current state of affairs in the city at the recent inaugural policy address, people seemed to have somewhat lost confidence in what the future holds.

To stem the further outflow of companies and talent, the government had also in recent months very publicly unveiled a high-level banking summit to host the titans of finance back in its city center. Despite this initiative, inbound quarantine measures and restrictive health monitoring continue to weigh.

I can understand why Riyadh will need an event like the FII to invigorate the region. But never in my wildest imagination, would I have imagined Hong Kong resorting to high profile summits to lure high profile bankers, businessmen and investors to its city.

The reality that Hong Kong now has to go out at length to advertise itself reveals how much its economic environment has deteriorated over the last few years.

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It used to be commonplace for investors to get rich in Hong Kong's capital markets. The city has enjoyed much success in being the go-to destination for businesses and equities market largely attributed to its proximity to China.

The sheer size of the Chinese market and depth of liquidity in Hong Kong drives a tremendous amount of brokerage, trading and research coverage, which in turn drums up more investor awareness and draws in more capital for companies.

The city has an impressive track record of companies that achieved multiple increases in market values as compared to its close neighbour Singapore, which is traditionally known for those seeking stable returns and wealth preservation.

But aside from the recent exodus of companies and talent, the debt and equities market in Hong Kong has basically also dried up.

In order to maintain its leading role as an IPO destination for Asia, the Hong Kong exchange had also initiated waiving revenue requirement for tech IPOs in an effort to revive the IPO market. I doubt this will be effective.

Once we start lowering benchmarks and compromising on the quality of companies such as waiving revenue requirements (in the case of tech IPOs), things can start to get dangerous. And if we are not careful, this shift could end up being permanent and structural.

Singapore is quite the classic example of how efforts in positioning itself as a listing hub has proved relatively futile. Its tie-up with NASDAQ and Tel Aviv has been questionable, none of which has produced any tangible results.

Even, the newly launched SPAC framework, which was probably meant to be an avenue for VC firms and early tech investors to cash out, has yet to bear any fruits with only three pathetic listings to date, part of which could be attributed to the soft global equities market.

Hong Kong never really needed to sell itself as a prime destination or lower its standards in order to attract the influx of capital and large companies. Maybe not until recently.