Wednesday, October 01, 2014

Hong Kong protests

the big headlines in our local news papers are about the huge HongKong protests.

FilAmblogger BelmontClub has a review of what's going on.

Hong Kong is China’s equivalent of a march. It lies on China’s border with the world, not just in the maritime geographical sense, but in terms of interface with the outside world.  As the current capital of China’s financial industry, information (which is all money is) has to flow in and out of its computers under more or less the same rules as its correspondent financial markets.  The Hong Kong protesters know finance is their trump card and are leveraging this fact. The protests are designed to disrupt the financial markets. “Hong Kong’s stocks fell to a two-month low, its currency dropped and equity-market volatility surged amid the biggest police crackdown on protesters since the city returned to Chinese rule.”...But that would only shift the Beijing’s problem of the marches from Hong Kong to Shanghai, not solve it.  For asTime Magazine’s Michael Schuman points out “on the Chinese side of the border, capital flows are restricted, the banking sector is controlled by the state and regulatory systems are weak and arbitrary. Meanwhile, in Hong Kong, financial regulation is top-notch, capital flows are among the freest in the world, and rule of law is enshrined in a stubbornly independent judicial system.”
mainly  bookmarked for later reading.

No comments: