China’s Hong Kong Dilemma (The New Yorker, 3 min read)
The protests and conflicts in Hong Kong have been escalating since they began in June. Being unable to find a mutually satisfying solution could have disastrous consequences for the Beijing government both economically and politically. As this brief article explores, solving this problem before the upcoming 70th anniversary of the PRC in October has become a complex, urgent priority for Chinese President Xi Jinping and the CCP.
Why does this matter? As Hong Kong currently possesses a stock market larger than London’s, consistent unrest in the city negatively effects the overall performance of financial markets in East Asia. If the tension continues to build, it could further put pressure on the Hong Kong’ dollar- decade long currency peg, a crucial component for its standing as the financial hub of the East.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)
Sign up to the Macro Hive newsletter here: