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Opinion | Hong Kong remains a place for business to thrive, no matter what the US says

  • The US ‘advisory’ about an increased risk of doing business in Hong Kong has no basis in fact
  • The city is prospering and the enactment of the national security law has not affected the business environment and operation of commercial law in any way

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Illustration: Craig Stephens
The US government issued a so-called “advisory” expressing the view that risks of doing business in Hong Kong have increased after the enactment of the national security law on June 30, 2020. Hard facts and figures show otherwise.

The financial market has continued to prosper. A total of US$51.3 billion was raised in 2020 through initial public offerings in Hong Kong, while US$40.1 billion was recorded in 2019. We have been ranked as the world’s top IPO venue in seven of the past 12 years.

In the securities market, the average daily turnover for the first six months of 2021 was HK$188.2 billion, representing an increase of 60 per cent when compared with HK$117.5 billion for the same period in 2020. Additionally, there has been a steady rise in total deposits in our banking system, which had reached HK$14.86 trillion at the end of May 2021.

These figures speak for themselves and can debunk any misrepresentations. Indeed, they indicate that, since the national security law was enacted, the certainty and predictability of Hong Kong’s business environment has been enhanced, thereby attracting investment and businesses.

The enactment of the national security law has not affected the business environment and the operation of commercial law in any way.

02:03

US warns American companies about operating in Hong Kong, sanctions 7 Chinese officials

US warns American companies about operating in Hong Kong, sanctions 7 Chinese officials

First, the substantive law in Hong Kong that governs business and commercial transactions has not changed.

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