Surviving the Storm in Hong Kong

Commentary

By time this article was published, Hong Kong will have been struck by tropical storm Ma-On. (Ma An) That will cause Hong Kong’s “quietness” to come to a halt. The city is able to recover from the severe damage caused by a Typhoon and resume normalcy.

Many people who remain in Hong Kong have seen the destruction process get worse every day since the Social Movement in 2019, and then the COVID “zero tolerance” policy. Is Hong Kong going to become another Chinese city? With high levels of surveillance and restrictions on freedoms, how quickly can it happen? This is happening right now.

With former Chief Executive (CE), Carrie Lam, gone and former police officer and hardliner John Lee now taking the helm of CE, who simply follow Beijing’s orders, this feeling of despair was unprecedented years ago. Hong Kong is indeed run as a police state and its “rule of fear” tactics are shocking. In just two years, the pan-democratic group was gone.

Close to around 2,700 people are now detained in the Hong Kong prison system, with most of the cases related to the social movement of 2019. Of the 2,700, over 200 activists and politicians are alleged to be in violation of the Hong Kong national security law (NSL). They are accused of organizing a primary in the pan-democratic camp, hosting candlelight vigils to support the 1989 Tianmen victims and being trustees for a humanitarian fund that provides legal assistance for people arrested during the 2019 Social Movement.

These activities ought to have been protected well by the Basic Law of Hong Kong. But, it is not.

For foreign investors looking to keep their money in Hong Kong, there have been many deterrents. These include the NSL purge in Hong Kong and strict COVID restrictions in Hong Kong. However, many multinationals and banks do have contingency plans in place for Hong Kong. This is because political risk does not only need to be taken into account, but also the biggest factor.

The U.S.A., Canada and other countries have “warnings,” for citizens traveling to Hong Kong because of the political instability.

The Hong Kong headline news is the 47 activists and politicians who were alleged to seize “the ruling power” of Hong Kong; and the Apple Daily seven, with founder Jimmy Lai and the other 6 senior executives of the now defunct newspaper, are alleged to be in violation of subversion under NSL.

These baseless accusations are laughable but not a joke for those at the top. While some of these NSL suspects are granted bail and have the right to move before trial, others will be held in detention (or locked in prison) for their entire legal battle.

Over two years the Chinese Communist Party, (CCP), had been crushing Hong Kong by its agents. We are most concerned by the fact that Beijing is seeking control and obedience, and Hongkongers have not been offered hope or opportunity. What is the way that Hong Kongers can still dream? The “time value”, a derivative of equity investment products, is rapidly diminishing and Hong Kong’s people are experiencing unimaginable stress.

The upcoming Hong Kong 47 and Apple Daily cases are surreal, and it proves again and again that when Hong Kong is ruled by tyranny, it is also our moral obligation, wherever you are, to voice out loud that these activists have stood up vehemently and sacrificed so much, to defend the freedom of Hong Kong. They kept their faith.

Some people are feeling threatened by the current political climate in Hong Kong and want to find a better life elsewhere. I recommend that you increase your cash flow, reduce your real estate holdings and don’t speculate. Also, make sure to park your assets outside of Hong Kong. There is still time to act before it’s too late. Real estate is the most valuable asset. You will have luck if it can be sold quickly at fair market price.

Finance secretary Paul Chan commented recently that Hong Kong’s real estate market might “get softer.” It is important to calculate one’s family net worth. To spread the risk of currency fluctuations, it is possible to convert Hong Kong dollars (HKD), into US dollars (USD).

For others, diversification means entering other currencies such as NZD and AUD. Currency hedges include the EU, SGD and JYP.

Since 1983, the Hong Kong dollar (HKD) is pegged with the US dollar (USD) at a narrow trading band. The range is between HK$7 and HK$7. 75 and HK$7. 85 to the USD, and the HKD is the 13th most widely traded currency worldwide.

While it is not a question of whether the peg will be kept intact going forward, these are serious concerns. As a USD buyer, it comes to your advantage when the HKD is on the strong side of the peg, which is at the band of US$1 to HK$7.75.

Finally, we struggle to comprehend what Beijing wants. We give all blessings to those who remain behind. It is possible to leave Hong Kong, but it’s still an option. As the saying goes, nothing lost can be gained. We bid farewell to Hong Kong. Goodbye Hong Kong!

Views in this article reflect only the opinions and views of the author. They do not necessarily represent the views of The Epoch Times.