【Hong Kong version of National Security Law】 Analysis refers to the difficulty of US sanctions to shake Hong Kong's status as an international financial center

Financial News

Written by: He Jingxi

2020-05-30 11:47

US President Trump held a press conference on the afternoon of May 29 local time, criticizing China for turning "one country, two systems" into "one country, one system," and announced that he would cancel special treatment for Hong Kong and sanction officials who weaken Hong Kong's autonomy. The market is concerned about the impact of the relevant measures on the Hong Kong economy.

Nicholas Lardy, a senior researcher at the Peterson Institute for International Economics, said in an interview with CNBC that the United States no longer regards Hong Kong as an independent customs zone, and has little impact on the economy of Hong Kong because most of the products Hong Kong exports to the United States are re-exported Other countries such as China and Vietnam already have taxes. Products produced in Hong Kong and exported from the United States are "close to none."

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He also pointed out that sanctions are difficult to shake Hong Kong's status as an international financial center. In fact, since 1997, there have been many voices worrying that Hong Kong will lose its status as an international financial center, but until now, Hong Kong's financial position has remained stable. He said that the role of the Hong Kong International Financial Center is based on a complex ecosystem created by a series of institutions such as local financial institutions, law firms, accounting firms, rating agencies, etc. It does not think that simply because the United States no longer recognizes Hong Kong ’s "Special status", the ecosystem will disappear overnight.

He continued that even if the status of Hong Kong's international financial center is impaired, it will not seriously affect China's economy. Because China no longer relies heavily on Hong Kong to raise funds, China also has a large stock market to raise funds.

Hong Kong version of National Security Law