Hong Kong national security law

Kelvin Lam, a former economist at HSBC Holdings Plc plans to run for a seat in Hong Kong’s legislature, vowing to stand up for the financial services sector against Chinese influence

US President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now.

Hong Kong, until recently an oasis of political stability in Asia, is now gripped with unprecedented regulatory and legal uncertainty that threatens its position as one of the world’s top financial hubs.

President Donald Trump ordered an end to Hong Kong’s special status with the US and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in the city.

If Hong Kong’s markets are any guide to its future as an international financial centre, then the city’s investors have little to worry about.

Facebook Inc., Google and Twitter Inc. -- all of which are blocked in the mainland -- are now headed toward a showdown with China that could end up making Hong Kong feel more like Beijing.

The Hang Seng Index jumped 7.8% in the three days after the law was imposed on July 1, its biggest rally since April 2015, and entered a bull market on Monday.

Tik Tok's exit follows the implementation of a new national security law for the semi-autonomous city.

HSBC Holdings Plc pledged to boost investments in China to capture more wealth and retail clients even as political tension escalates after Beijing launched sweeping new security legislation to crack down on Hong Kong.

The legislation passed by lawmakers in China and signed by President Xi Jinping allows for potential life sentences for crimes including subversion of state power and collusion with foreign forces.