HONG KONG: Bankers and investors fear China's push to impose national security laws on Hong Kong threaten the city's future as an international financial centre. If it gets to that stage, Beijing's move will come at a cost for China's economy. WHY DOES CHINA NEED HONG KONG AS IT IS? China still has extensive capital controls and often intervenes in its financial markets and banking system. Hong Kong is one of the world's most open economies and one of the biggest channels for equity and debt financing. The size of Hong Kong's economy may only be the equivalent of 2.7% of mainland China's, down from 18.4% in 1997 when it reverted to Chinese rule, but the territory punches above its weight due to world-class financial and legal systems. As a gateway between China and the West, Hong Kong attracts global capital for China more efficiently than its other cities. HOW IS THAT CHANGING? Under the 'one country, two systems' formula agreed as part of Britain's handover of the territory … [Read more...] about How important is Hong Kong to China as a free finance hub?
Hong kong stock markets
“We will take action to revoke Hong Kong’s preferential treatment as a separate customs and travel territory from the rest of China,” Trump said, adding that Washington would also impose sanctions on individuals seen as responsible for “smothering - absolutely smothering - Hong Kong’s freedom.” … [Read more...] about In broadside against China, Trump moves toward ending Hong Kong privileges
That prompted Secretary of State Michael Pompeo to announce earlier this week that the administration no longer considers the city sufficiently autonomous under a 1992 law that allows for easier travel and trade between the US and Hong Kong. The law also allows companies based in the Chinese territory access to American technologies deemed sensitive to national security that face export restrictions in mainland China. … [Read more...] about Trump moves to revoke Hong Kong’s trade status, stoking China Rift
"We will take action to revoke Hong Kong's preferential treatment as a separate customs and travel territory from the rest of China," Trump said, adding that Washington would also impose sanctions on individuals seen as responsible for "smothering - absolutely smothering - Hong Kong's freedom." … [Read more...] about Trump moves to revoke Hong Kong privileges
Wall Street's main indexes retreated on Friday as investors were cautious ahead of a U.S. response to China's national security law on Hong Kong that threatens to take some shine off another month of strong gains for the stock market. President Donald Trump, who has warned of a tough response to China's move, is expected to hold a news conference at 2 p.m. ET (1800 GMT). "It is a pullback in front of what is likely to be pretty bipartisan and hawkish remarks from the president," said Bob Shea, chief executive officer of TrimTabs Asset Management in New York. "I'm not surprised and it's happening at a time when markets are short term over bought, meaning due for some corrective action." Despite worsening relations between the world's two largest economies amid the coronavirus crisis, expectations of a quick post-pandemic recovery in the economy have driven the S&P 500 about 37 per cent higher from its March lows as it heads for a second straight month of gains. The benchmark … [Read more...] about Dow Jones retreats ahead of Trump’s response on Hong Kong