U.S. President Donald Trump claimed that bourse success in Hong Kong will see its end as Washington seeks to take back business.
Trump said yesterday that his administration’s decision to end Hong Kong’s special economic status following the enactment of the national security law will result in the fall of the city and the rise of the U.S. in terms of exchange business.
«For freedom, we gave them tremendous incentives […] they took massive business away from the New York Stock Exchange, Nasdaq, all of our exchanges,» he said in a «Fox News» interview.
«We've now taken that all back, Hong Kong will not be a successful exchange anymore […] we're going to make a lot more money now».
Chinese Delistings
Trump’s comments suggest his belief that more corporate issuers may seek to list in the U.S. as Washington signals less confidence in perceived autonomy in Hong Kong. Simultaneously though, pressures to further Chinese delistings – including a bill requiring stricter accounting compliance – have been seen by others as a tailwind for Hong Kong’s exchange which could act as an even more dominant funding center for companies from the mainland.
«Going forward, China’s further rise and the continued dominance of the U.S. could set the two nations on a collision course,» said HKEX chief Charles Li, who is due for retirement later this year, in a recent blog post rejecting that the bourse’s «glory days» were numbered.
«This increasing polarization means that our world needs more and better connections and not fewer. As such, Hong Kong’s role as the connector between East and West will only become more vital.»
