National security law to be beneficial for Hong Kong

Despite the fact that the USA opposed the introduction of the China's national security law, it has a positive impact on Hong Kong's economy, RISS expert Mikhail Belyaev says. "After the entry into force of this law, shares on the Hong Kong Stock Exchange soared by 2.27%. This is a very high indicator," he added.

China moved in with national security law as Hong Kong legislature "has failed to deliver," Belyaev recalled. The large-scale civil unrest last year looked similar to the color revolutions. Mass protests turned into violent pogroms and, according to some estimates, China suffered a loss of $8 million due to them. First of all, China’s newly-adopted national security law is aimed at preventing Hong Kong from becoming a haven for terrorists, Belyaev outlines. After Hong Kong’s new national security law came into effect, Washington immediately imposed sanctions against Chinese financial institutions and companies.

Hong Kong have cemented its place in the top tier of global financial centres, occupying the sixth spot, Belyaev points out. Hong Kong is the greatest financial hub for China; according to the statistics, Hong Kong still managed to account for a lion share of 70% in overall cross-border RMB payments all over the world. That is why it is important for Beijing to ensure that the situation in the city is under control. "The rapid growth of Hong Kong Stock Exchange shares showed that the new national security law strengthened investors' confidence in the stability of this special economic zone," RISS expert concluded.

China economy