ILLUSTRATION. Residents wear masks in Pulai Cheung Chau, amid a corona virus pandemic (COVID-19), in Hong Kong
Reporter: Maizal Walfajri | Editor: Herlina Kartika Dewi
KONTAN.CO.ID – HONG KONG. The new national security law for Hong Kong, adopted by China, comes into force at 11 pm local time (1500 GMT). This law can provide economic, business and investment changes in the global financial center.
Quoting BloombergOn Wednesday (1/7), after this law was enacted there were no big surprises that occurred in the market. However short-term movements in shares, yuan and Hong Kong dollars will depend on the United States response to the controversial law.
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On the other hand, thanks to this Act, Hong Kong equities will continue to get support from buyers from China. Business people respond to this law, they are more comfortable if Hong Kong is more focused on economic issues rather than politics.
Barclays Plc Chief Executive Jes Staley, for example, firmly does not want to be involved with this political condition. Although he will support all colleagues and clients throughout Asia and in China and in Hong Kong.
“This is a very difficult political situation. We will not make a statement. We are a large British bank. We must be very aware of what is happening in the US and the position taken by the British government. But we will not be involved in Hong Kong politics, “said Staley.
In the long run, this law will increase the complexity and risk of working and operating in Hong Kong. Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney said that as an investor, this has caused many companies and international investors to look at other Asian markets, rather than Hong Kong being a hub.
“But I think Hong Kong is still very, very relevant and is a hub for having access to China, which is a very large market,” he added.
Meanwhile, Law Ka-chung, assistant professor at City University of Hong Kong and former economist of the Bank of Communications (Hong Kong) said this law made the world see Hong Kong is no longer a free capitalism market. That will speed up capital outflows and capital flight from Hong Kong.
In addition to investment, doing business through Hong Kong will also be devastated. Because the United States, European Union, India, Japan, Australia, and many other countries are anti-China.