Hong Kong security law: China doubles down on support for city as finance hub as concerns mount over its future
- China is expanding financial schemes in Hong Kong to cement its status as a commercial gateway to the rest of the country
- Beijing’s imposition of a new national security law on the city has raised the risk of US financial sanctions and prompted questions over its future
Beijing is expanding existing financial schemes and voicing continued support for Hong Kong’s role as a gateway for international investors into China, amid concerns about the impact of a new national security law on the city.
China’s central bank on Friday celebrated the third anniversary of Bond Connect, a scheme that allows foreign investors to buy bonds in the onshore interbank market through financial institutions in Hong Kong.
The People’s Bank of China (PBOC) vowed to improve the programme, which has helped boost foreign ownership of Chinese bonds. About 9 per cent of China’s government bonds were held by overseas investors at the end of June.
The key economic issues are whether the city will retain its role as a gateway in and out of China, and its status as a global financial hub
While details of the programme are still being drafted, it could help cement the city’s role as a gateway to China.
