Friday, August 16, 2019

Hong Kong Issue


Hong Kong is loaded with banks and hotels. It is a financial center for Asia. China’s moves to remove Hong Kong sovereignty could result in an exodus of investment capital from Hong Kong to Singapore, Asia’s other financial center. The current population of Hong Kong is 7.5 million. Hong Kong’s Nominal GDP in 2018 was $363 billion. Hong Kong’s Nominal Per Capita GDP in 2018 was $48,684. China’s Nominal Per Capita GDP in 2018 was $10,200.

Hong Kong likes doing business with China, but they don’t want to be governed by Beijing.

Currently, foreign banks will only finance or issue derivatives against a Chinese client with a legal entity in Hong Kong or another common law jurisdiction. The solution is for a bank to maintain a legal team and office in Hong Kong to deal with local court cases.

Foreign banks will move to Singapore if it looks like China is going to eliminate the Hong Kong sovereignty they agreed to when they got Hong Kong from the UK.

Hong Kong tycoons start moving assets offshore as fears rise over new extradition law, 6/14/19, Reuters.


Norb Leahy, Dunwoody GA Tea Party Leader



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