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?
Economy in china
Trump announced in March he would end India’s access to the decades-old Generalized System of Preferences trade programme over what the United States said was lack of access to India’s market. The programme allows emerging countries to export goods to the United States without paying duties. … [Read more...] about Modi picks China expert and former envoy to U.S. to steer India’s foreign policy
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
Pompeo notified Congress on Wednesday that Hong Kong is no longer deserving of the preferential trade and commercial status it has enjoyed from the U.S. since it reverted to Chinese rule in 1997. Under a joint Sino-British agreement on the handover, Hong Kong was to be governed differently than the mainland for 50 years under a "one country, two systems" policy. … [Read more...] about Chinese Grad Students May Be Next Hit by US-China Tensions
SHANGHAI: China stocks edged up on Friday to end the week higher, as expectations that Beijing would take necessary measures to underpin the world's second-largest economy overshadowed concerns over escalating Sino-U.S. tensions. At the close, the Shanghai Composite index was up 0.22% at 2,852.35, while the blue-chip CSI300 index was up 0.27%. For the week, SSEC and CSI300 gained 1.4% and 1.1%, respectively. China has room to stimulate an economy trying to recover in the wake of the coronavirus pandemic, but the government does not want to open the "floodgates", Premier Li Keqiang said on Thursday at the end of the annual meeting of parliament. "We have reserved policy room. Be it fiscal, finance, or social security," Li said. China's factory activity likely rose for a third straight month in May as the economy recovered from strict lockdowns implemented to contain the coronavirus outbreak, which has hammered global business activity. Leading the gains for the week, the … [Read more...] about China stocks end higher as stimulus hopes offset Sino-US worries