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Hong Kong version of the National Security Law|Fitch Rating: It is too early to say whether the law will further affect Hong Kong’s rating 

2020-06-23T09:44:44.647Z


The legislative process of the Hong Kong version of the National Security Law has not yet been completed, and the relevant legal provisions have not been disclosed, which inevitably arouses the market’s attention. Andrew Fennell, senior director of Fitch's Asia-Pacific sovereign rating, an investment rating agency


Financial News

Written by: Zhang Weilun

2020-06-22 19:13

Date of last update: 2020-06-22 19:15

The legislative process of the Hong Kong version of the National Security Law has not yet been completed, and the relevant legal provisions have not been disclosed, which inevitably arouses the market’s attention. Andrew Fennell, senior director of Fitch's sovereign rating in the Asia Pacific region, an investment rating agency, pointed out that the bank's current rating of "AA-" on the sovereign credit of the Hong Kong government has reflected that Hong Kong is facing some crises and changes. Whether the Hong Kong version of the National Security Law will further affect Hong Kong's sovereign rating depends on how the new law affects investors' perception of Hong Kong. It is still too early to say.

Andrew Fennell pointed out that if investors change their views on Hong Kong due to national security laws in the medium term, they may have an impact on Hong Kong's credit rating. However, at present, market participants have different views on the National Security Law, and it is too early to make judgments.

He pointed out that as long as Hong Kong can maintain the independence of its macro-institutional characteristics, including the linked exchange rate system, the overall independent judicial status and independent financial management, it is sufficient for Hong Kong to maintain a one-level sovereign rating gap with China.

Fitch expects China's economic growth to be 0.7% this year, relative to the global recession of 4.6%, Hong Kong's economy contracted by 5%; next year China's growth is expected to reach 7.9%. Andrew Fennell pointed out that the impact of the current epidemic on China's economy and sovereign rating agencies is far greater than Sino-US friction. However, China and the United States eventually decoupled, inevitably affecting the rating.

Fitch expects Hong Kong's economy to shrink by 5% this year

Fitch's global economic forecast is expected to contract by 4.6% this year, saying the worst time has passed

[Hong Kong version of the National Security Law] Fitch: Hong Kong gradually integrated into the mainland's national governance system

Hong Kong version of National Security Law Fitch

Source: hk1

All news articles on 2020-06-23

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