If Beijing decides to pursue its course in Hong Kong, no one has the leverage to stop it, so the message must be “that it will come with a cost,” he said in a Bloomberg Television interview. “And I would assume that some of the issues that have been contentious around Europe, like the issue of are we going to allow Huawei to participate in building of the 5G networks, may look differently under the auspices of recent Chinese actions.” … [Read more...] about Europe reaches a tipping point over China’s Hong Kong gamble
Us declines to label china a currency manipulator
“The market was worried he was going to announce something substantial, something detrimental to the US economy. Then as he spoke it became clear the actions being taken were not going to be as dramatic as originally feared,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina. … [Read more...] about Global stocks rebound on relief at Trump’s response to China over Hong Kong
Trump’s announcement came after China’s legislature moved this week to impose a new national security law on Hong Kong that critics say will restrict freedoms in the city. The US president has also sought to blame China for the coronavirus pandemic that’s killed more than 100,000 Americans as domestic criticism of his handling of the outbreak has mounted. … [Read more...] about Trump moves to revoke Hong Kong’s trade status, stoking China Rift
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?
A body advising the US Congress this week questioned Wall Street’s push, saying lawmakers need to “evaluate the desirability of greater US participation in a financial market that remains warped by the political priorities of a strategic competitor.” Add to that potential sanctions against China and even its banks over the crackdown on Hong Kong, and the situation could further escalate. … [Read more...] about Wall Street has billions to lose in China from rising strain