Hong Kong's No. 2 Official: "No Capital Flight from Hong Kong Since Security Law Implementation"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Park Sun-mi] Amid concerns that Hong Kong's financial status could be shaken following the implementation of the Hong Kong National Security Law, a senior Hong Kong government official asserted that there has been no large-scale capital flight from Hong Kong since the law took effect, emphasizing the city's stability.

On the 16th, Matthew Cheung, Hong Kong's second-in-command and Chief Secretary for Administration, stated in an interview with the Chinese media outlet Global Times, "Since the implementation of the Hong Kong National Security Law, there has been no large-scale capital flight from Hong Kong, and the financial market remains vibrant." He added, "The new Hong Kong National Security Law will not affect foreign investors conducting business legally in Hong Kong," emphasizing, "It will also not impact the city's international connectivity or its economic relations with foreign countries."

Since the enforcement of the Hong Kong National Security Law on the 30th of last month, concerns have been raised mainly by Western countries and Western media that Hong Kong's role as an international financial and commercial hub might diminish. On the 14th (local time), U.S. President Donald Trump signed an executive order and sanction legislation ending Hong Kong's special status, citing China's implementation of the Hong Kong National Security Law.

Chief Secretary Cheung explained, "The Hong Kong National Security Law protects Hong Kong from threats related to national division, subversion, terrorist activities, and collusion with foreign forces, helping Hong Kong maintain political and social stability," and added, "In fact, it can create a more favorable environment for investment and business operations in the long term."

He highlighted that since the law's implementation, the Hong Kong stock market has maintained an upward trend and the exchange rate has remained stable, underscoring Hong Kong's financial stability. The Hang Seng Index has risen 4.32% since the law took effect on the 30th of last month, and the Hong Kong dollar has shown a stable trend at 7.75 HKD per USD.