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Thursday, June 13, 2019

HK Extradition bill could inflict huge damage on HK economy and stock market

The passage of the extradition bill could be a tipping point for the removal of US-Hong Kong Policy Act which can potentially inflict huge damage on the Hong Kong economy and its stock market

The passage of the extradition bill could potentially be the tipping point in US-Hong Kong relations, from which the US begins to seriously question whether Hong Kong is justified to receive special treatment from the US.

The US is also concerned that the proposed changes “could create serious risks for US national security and economic interests in the territory. If passed, the bill could potentially violate several key provisions of the US-Hong Kong Policy Act of 1992” “ and subject US citizens residing in or visiting Hong Kong to China’s judicial system.

There are fears the US will revoke the US-Hong Kong Policy Act. The policy act treats Hong Kong as a separate jurisdiction from mainland China and gives Hong Kong special treatment with regards to matters trade and commerce . For example, Hong Kong is not subject to the tariffs imposed by the US on Chinese goods in the current trade war.

I believe that the risk of the US withdrawing the US-Hong Kong Policy Act immediately is small since Donald Trump has not sound any serious opposition so far . Removal of the US-Hk Policy act could also set off the withdrawal of foreign investment in Hong Kong businesses and asset from a loss of confidence.
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