With nearly all of the world's airlines that are worth mentioning flying to HKG, I think there's already enough competition. There's a plethora of LCCs flying to HKG and HX itself has pretty good fares compared to CX. Other carriers in the region like BR, CI and CA often have low fares out of HKG as well.

My concern about LCCs is that at least imo, LCCs lower the standard of commercial aviation in the entire country. Look at the "race to the bottom" which has been going on in the US for some time or the continual struggle of European airlines to compete with the likes of Ryanair. East Asia and the Gulf states are the last places where there is still "excellence" in the airline industry, and imo the burgeoning of LCCs in SE Asia is threatening the quality of product/service we currently enjoy; not so much on CX/SQ but very much so on the more "vulnerable" carriers in the region.