Investors unfazed by HK security law

Business | Eurus Yiu 18 Jun 2020

Ceajer Chan Ka-keung, the former Secretary for Financial Services and the Treasury, as well as the chairman of WeLab Bank, said at a Hong Kong General Chamber of Commerce forum that China still relies on Hong Kong to capture foreign capital, as a CFA Institute survey showed that the proposed national security law has not affected investor confidence.

Allan Zeman, the chairman of the LKF Group, also said at a forum organized by the Our Hong Kong Foundation that freedom has not been lessened, but young peoples' grievances were mainly due to a lack of housing.

Tan Min-lan from UBS Global Wealth Management said if the national security law is targeted at secession, subversion, terrorism, and foreign interference, while all aspects of the Basic Law and institutional settings in Hong Kong remain unchanged, it is probably positive for Hong Kong.

However, she expects the MSCI Hong Kong will see a single-digit drop in the next 12 months, the most pessimistic view among markets it has studied.

Meanwhile, Daiwa Securities Group said in a report that the US will not do anything to the peg system, but implement other sanctions.

In other news, the Hong Kong dollar remained strong and hit the strong end of its trading band with the greenback twice due to tightening liquidity amid mega IPO activity. The Hong Kong Monetary Authority sold HK$3.01 billion worth of local currency in exchange for US dollars, increasing the aggregate balance to HK$126.54 billion.

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