Wealthy keep faith in the city, for now

Business | Bloomberg and Stella Zhai 13 Aug 2020

Hong Kong's high net worth investors are mostly staying put, easing fears the city's new national security law would unleash a flood of capital outflow.

Withdrawals have been minimal since the law came into effect on June 30, in part because rich investors are still assessing how the mainland government's tighter grip on Hong Kong will impact asset prices and the long-term business environment, according to executives at four of Asia's biggest wealth managers. Many rich investors who've kept their money in the city have cited expectations that China's government will act to prop up Hong Kong markets, they said.

Meanwhile, US and Chinese negotiators plan to discuss the progress of their trade deal in the coming days, with Beijing pushing to widen the agenda to include Washington's crackdown on businesses including TikTok and WeChat. A virtual meeting will likely take place as soon as this week though a date hasn't been finalized, sources said.

The trade deal is "fine" and China is "substantially" increasing purchases of American goods, US President Donald Trump's top economic adviser Larry Kudlow said, dismissing concerns that rising tensions between the two countries might jeopardize the deal.

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