Hong Kong version of the National Security Law | BlackRock strategists say it is difficult to assess the impact on the market before the details of the provisions are announced

Financial News

Written by: Zhang Weilun

2020-06-30 16:05

The Standing Committee of the National People's Congress has passed the National Security Act of the Port Area. Pang Wenbo, chief investment strategist in the Asia Pacific region of BlackRock, pointed out that it is difficult to assess the impact of the regulations on the Hong Kong market before knowing the details of the provisions, but he believes that it does bring pressure to the market; It is pointed out that after the relevant details are announced, it will lead the market reaction.

As for the U.S. Department of Commerce’s announcement to revoke Hong Kong’s special treatment status, he pointed out that in recent months, there have been different voices in the market that have triggered market volatility, and the situation is expected to continue. He also pointed out that in general, investors will feel the real impact of policy changes, which will affect investment decisions over time.

When talking about Sino-US relations, Pang Wenbo made it clear that regardless of the outcome of the November US elections, the tension between the two sides and the decoupling of the economy will continue. He also pointed out that geopolitical risks are higher than in the past and investors must consider geopolitical risks.

On the other hand, BlackRock's current view of continued "overweight" of bonds and a "neutral" view of stocks. He pointed out that in emerging markets, regions that prefer a stable balance sheet and have policy space to withstand economic downturns, such as China, South Korea, and Taiwan.

BlackRock Port National Security Act