National security law won't affect normal operation of Hong Kong's financial markets: official

Xinhua
The national security law for Hong Kong will not affect the normal operation of financial markets and legitimate business of financial institutions and market participants.
Xinhua
National security law won't affect normal operation of Hong Kong's financial markets: official
Xinhua

Aerial photo taken on July 16, 2020 shows south China's Hong Kong. 

The national security law for Hong Kong will not affect the normal operation of financial markets and legitimate business of financial institutions and market participants, a senior official of the Hong Kong Special Administrative Region (HKSAR) government said Sunday.

Financial Secretary Paul Chan said in an online article that the law clearly stipulates four offenses endangering national security and the financial sector can continue their normal operation under Hong Kong's existing legal framework.

The law will neither affect the common business, participation in market activities or capital allocation of related institutions and individuals nor obstruct them from processing their own materials and data, collecting and distributing information, doing business researches as well as voicing their opinions, Chan said.

National security law won't affect normal operation of Hong Kong's financial markets: official

The stock code of NetEase 9999. is seen at the trading hall of Hong Kong Exchanges and Clearing Limited (HKEX) in Hong Kong, south China on June 11, 2020. 

Chan noted that Hong Kong's financial markets have remained in stable and orderly operation since the national security law took effect on June 30.

The Hong Kong dollar has remained strong and the stock market has seen robust trading and initial public offerings, Chan said.

No significant capital outflows have been reported, and on the contrary, more than US$11 billion went into the market, Chan said, adding that total deposits in the banking system have been on the rise over the past months.

Many market participants said the law will help restore security and order in the business environment, which is crucial to Hong Kong's sustainable development as a global financial hub, Chan said.

National security law won't affect normal operation of Hong Kong's financial markets: official
Xinhua

A woman walks past an advertisement billboard marking the listing of JD.com in Hong Kong, in south China's Hong Kong on June 18, 2020. 

Noting that the influence of US sanctions on the Hong Kong economy is limited, Chan expressed firm opposition to US interference, which seriously violates international laws and the basic norms of international relations, and smacks of double standards and hegemonism.

Chan reiterated that the implementation of the law will not affect the rights and freedom of Hong Kong residents under the HKSAR Basic Law and related international conventions applicable to Hong Kong.

The enactment of the law is aimed at safeguarding "one country, two systems," Chan said, stressing that Hong Kong's high degree of autonomy, legal systems including judicial independence, the capitalist system, and the protection of legitimate rights and interests of external investors will not change.

National security law won't affect normal operation of Hong Kong's financial markets: official
Xinhua

People ride in the West Kowloon Cultural District in Hong Kong, south China on July 17, 2020.

Hong Kong's currency and financial system will also stay the same and the financial hub will maintain the linked exchange rate system and continue to allow free capital flows, Chan said.

With the nation's support, the HKSAR government has the confidence and the capability of maintaining Hong Kong's long-term prosperity and stability, Chan said.

Hong Kong will continue to provide investors with a world-class business environment and supervisory structure, said the financial secretary.

It will be proved that national security, prosperity and stability, and market vitality can coexist in Hong Kong, which will offer businesses a more solid foundation for their operation and broader development space, Chan said.

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