Hong Kong official: 99.99 percent won't be affected by new law

U.S. agencies are ‘concerned’ about Hong Kong but are not leaving the city yet, new survey says

In a survey conducted by the American Chamber of Commerce in Hong Kong, more than 80% of respondents said they were “too” or “moderate.” Concerned about the lawWhich is due to the ban on sedition, secession and harassment against Beijing. The agency said 180 of its members responded to the survey on Monday and Tuesday. This is about 15% of its membership, which is mostly made up of American companies.

Amchem Said many respondents said they understood the need for legislation, which comes after nearly six months of violent anti-government unrest last year. However, some have expressed concern that this could lead to “potential harassment and privacy concerns” or more restrictive action.

“I am also concerned about the tax structure and its changes [Hong Kong] “Tax arrangements may occur,” one respondent wrote.

More than 50 companies surveyed also said they were concerned about the ambiguity of the law and the erosion of Hong Kong’s autonomy. The former British colony became a semi-autonomous region of China about 20 years ago and since then has largely remained to manage its own affairs.

Top concerns were how the law could reduce the city’s talent or threaten its reputation as an international business hub. American agencies also fear that the growing border agreement on US-China relations could be hampered.

Still, 70% of respondents said they have no plans to take their business out of Hong Kong. Most of them also said that they would not consider leaving in person.

“Not yet, but of course setting up‘ insurance ’plans and setting up alternative jurisdictions,” one respondent wrote.

Hong Kong’s business and investor confidence were shaken late last month after news of impending law violations. Criteria Hang Senong Index (HSI) It sank more than 5% on May 22, the worst ODI percentage drop since July 2015.
Even then though the emotion has stabilized – and Hang Seng Even ticked up Investors have so far blocked Washington’s limited response to Beijing’s new law. The index is up about 6% this week.
US President Donald Trump last week called on the country to cover up national security laws Wants to end its special economic and business relations With Hong Kong

But experts point out that Trump’s lack of immediate action was offset. And they suspect that the specially dignified completion will not have a major impact immediately because the region does not export large quantities of goods to the United States.

More than 70% of respondents to the MCham poll said they were adopting a “wait and see” approach to Trump’s response.

“It is too early to make a strategic decision on revoking the status of special trade,” one respondent wrote, adding that it would take several months to implement. Others said they would consider establishing entities in other parts of the region, including Singapore.

About 15% of respondents to the survey said they were still optimistic about Hong Kong’s business prospects, with one calling it an “unparalleled position in Asia Pacific.” However, about half of the respondents said they were pessimistic about the possibility of doing business in Hong Kong in the medium to long term.

One respondent wrote that they “feared that the brilliance would be lost forever.”

“Being a large city is not a minor role in the second largest economy, but much less than being a top global city,” the respondent wrote.

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