Equities

Global stocks risk off as Beijing considers new Hong Kong security law

Shares in Hong Kong plunged overnight on fears a tougher stance from Beijing’s towards the territory will spark fresh pro-democracy protests, potentially leading to the kind of wide scale unrest witnessed last year.

The Hang Seng slid over 5%, notching its worst daily decline in 5 years, as China’s National People’s Congress (NPC) moved to impose controversial national security legislation in Hong Kong, bypassing local lawmakers.

Markets unsettled as China plans new Hong Kong security law

China’s Communist Party wants to impose a national security law that would ban “treason, secession, sedition and subversion”.

The plan was detailed at the NPC on Friday, triggering fears that Beijing will end freedoms for people in Hong Kong not enjoyed elsewhere in China. As well as big losses for the Hang Seng, European and US stock market futures fell deep into the red ahead of the European open.

Carrie Lam, the pro-Beijing chief executive of Hong Kong, says the territory will fully cooperate with China.

Beijing’s Hong Kong plans send stocks tumbling – but why now?

Under terms of the handover from the British in 1997, Hong Kong is required to pass national security laws but has so far not done so.

Hong Kong’s first chief executive Tung Chee-hwa tried and failed to pass national security laws in 2003, sparking protests that ultimately ended in his resignation.

Lately Chinese officials have become worried it lose its grip on Hong Kong with new elections due in September.

Last November pro-democracy candidates won handily in district council elections, raising fears in Beijing that this would be replicated in Legco elections this autumn.

This followed several months of unrest and civil disobedience against a planned extradition bill – later abandoned – which caused Hong Kong’s economy to tank and local stocks to tumble.

How Hong Kong-Beijing tensions could impact global stock markets

This is a significant flash point that will stir local protests and anger the US.

Unrest last year caused Hong Kong to fall into recession for the first time in ten years, with GDP contracting 3.2% in the July-September quarter as tourists steered clear of the territory.

The unrest also caused business sentiment to sour – a repeat would be an unwelcome development for the likes of Asia-focused banks HSBC and Standard Chartered.

Investors will need to add renewed Hong Kong-Beijing tensions into their mix of geopolitical risks, and it is the way it fits into the broader US-China rivalry that is more of a worry for investors.

Equities face new geopolitical risks as China-US relations sour further

At a time of already strained relations between China and the West, this decision will only isolate Beijing even more.

US President Donald Trump he would “address that issue very strongly” if Beijing passed the law. The White House has already started to stiffen its resolve against China for what it sees as the country’s failure to contain the Covid-19 outbreak.

Republican and Democratic Senators plan to introduce legislation to impose sanctions on Chinese officials if the law is passed.

Meanwhile US-China trade tensions remain on the table and with the US presidential election this November coming at a time of immense economic dislocation, the relationship between Washington and Beijing looks set to only get worse.

Neueste Marktmeldungen

OPEC meeting weighs on crude oil ahead of US EIA inventories data

Read More

Stocks grind higher, dollar squeeze continues

Read More

IPO market coming back to life?

Read More

OPEC meeting preview: record production cut to be extended?

Read More

Stocks nudge up, GBP breaks higher

Read More

May’s top Blends: Einhorn rises, Corona falls

Read More

Stocks rally, dollar offered, OPEC meeting may be brought forward

Read More

Week Ahead: Central banks on tap, NFP faces massive Covid hit

Read More

ECB preview: Welcome to Japan?

Read More
Previous
Next

Mitmachen bei Markets.com und Marketsx kennenlernen

Markets.com ist die hochmoderne Tradingplattform von Markets.com. Als Teil der TradeTech-Gruppe, die zur im FTSE 250 gelisteten Playtech gehört, besitzen wir bei Markets.com umfassende Kenntnisse der Finanzmärkte und eine unglaubliche Bandbreite an Ressourcen. So können wir in der Welt des Finanzhandels ständig neue Maßstäbe setzen.

Konto einrichten

CySEC (Europa)

Produkte

  • CFD
  • Aktienhandel
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • FSCS-Anlegerentschädigung bis zu 20.000 EUR
  • Schutz vor Negativsaldo

Markets.com, betrieben von Safecap Investments Limited („Safecap“) Reguliert von der CySEC unter der Lizenznummer 092/08 und von der FSCA unter Lizenznummer 43906.

FSC (Weltweit)

Produkte

  • CFD
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • Elektronische Bestätigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (BVI) Limited („TTMBVI”) Besitzt eine Lizenz der B.V.I Financial Services Commission („FSC“) mit der Lizenznummer SIBA/L/14/1067.

FCA (Britische)

Produkte

  • CFD
  • Spread-Wetten
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • FSCS-Anlegerentschädigung von bis zu 85.000 GDP. *Abhängig von Kriterien und Teilnahmeberechtigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Alpha Limited („TTA“) Reguliert von der Financial Conduct Authority („FCA“) unter der Lizenznummer 607305.

ASIC (Australien)

Produkte

  • CFD

  • Kundengelder werden in getrennten Bankkonten geführt
  • Elektronische Bestätigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (Australia) Pty Limited („TTMAU”) Hat bei den Australian Financial Services die Lizenznummer 424008 und wird von der Australian Securities and Investments Commission („ASIC“) reguliert”).

FSCA (Afrika)

Produkte

  • CFD
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (South Africa) (Pty) Limited („TTMSA”) Reguliert von der Financial Sector Conduct Authority („FSCA“) unter der Lizenznummer 46860.

Nach der Auswahl einer dieser Regulierungsstellen werden die entsprechenden Informationen auf der gesamten Website angezeigt. Für weitere Informationen bitte hier klicken.