Hongkongers Fearful of National Security Law

Investor reaction to the national security law was swift today in Hong Kong

 

This morning investors were very worried about the national security law that was proposed by the National People's Congress today. The Hang Seng Index plummeted 5.56 percent -- the largest single day drop since 2015 -- over fears of the new legislation and that it would further provoke protests.

Indeed there were some attempted protests today, but many protesters might have been scared off by the sight of so many riot police. Nevertheless, a number of pan-democratic lawmakers marched to the liaison office in Western to voice their protest against the upcoming law.

Lawmakers and activists marched to the liaison office today

Surely there will be many contacting emigration consultants again and re-checking their bank accounts to see if they have enough money to leave Hong Kong. Others are resigned to their fate, not able to leave, or refuse to leave the city they call home.

Today the mood was sombre, but Chief Executive Carrie Lam Cheng Yuet-ngor tried to play down concerns about the security law with a press conference at 8.30pm this evening.

Standing behind her were her entire cabinet as well as Executive Council members -- all of them wearing the government-produced Cu+ Mask. And for the record, hardly anyone wears these masks on the streets of the city.

Behind all of them was a banner that was too wordy and very mainland: "Full support for establishing and improving the legal system and enforcement mechanisms for the HKSAR to safeguard national security".

Carrie Lam tried to assuage fears... but hardly convincing

What a mouthful.

Despite the stock market plunging today over 1,100 points, Lam said there was business support for the stability the legislation would bring.

"You have quoted the public response by one of the chambers [American Chamber of Commerce]," Lam said. "But I have also read press statements issued by some of the Hong Kong local chambers... anything safeguarding national security, that will help stabilize the environment, is also very good for local investment sentiment."

We shall see in the coming weeks and months how people vote with their feet. Will people continue to feel comfortable being in Hong Kong or will they seek stability elsewhere?

Her words are hardly reassuring, but then again when was she ever reassuring?