«People are concerned about the possible withdrawal of foreign capital from Hong Kong. But so long as our policies are appropriate, capital that leaves Hong Kong will return … China will courageously face this catastrophe.” Deng Xiaoping said these words in September 1982, just before Hong Kong’s markets took a dive amid jitters over Sino-British talks regarding the territory's future.
Today, a similar loss of market confidence would be far more damaging. Hong Kong, China’s largest centre for international finance and services, and its fourth-largest trading partner (after the US, Japan and South Korea), is considering revisions to its extradition law that could see fugitives transferred to mainland China for trial. If passed, these amendments could threaten confidence in Hong Kong’s values and business. This could, in turn, negatively affect China’s stability and economic growth, which are important sources for the central government’s continued hold on power.
Today, a similar loss of market confidence would be far more damaging. Hong Kong, China’s largest centre for international finance and services, and its fourth-largest trading partner (after the US, Japan and South Korea), is considering revisions to its extradition law that could see fugitives transferred to mainland China for trial. If passed, these amendments could threaten confidence in Hong Kong’s values and business. This could, in turn, negatively affect China’s stability and economic growth, which are important sources for the central government’s continued hold on power.
