China pledges continued support for Hong Kong as global financial centre

After weeks of unrest following the imposition of the controversial national security law, China’s banking regulator has vowed its continued support for Hong Kong as a financial hub. In addition, Beijing has also pledged to open up the Chinese financial sector amid deepening discord with the United States.

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China to continue 'supporting' Hong Kong

In a statement, the Chinese Banking and Insurance Regulatory Commission (CBIRC) said the mainland will offer essential services to residents and companies operating in the city and will also provide support to its financial institutions that are operating in Hong Kong. Rising tensions between the US and China have led to a series of back and forth sanctions between the two nations.

Hong Kong’s global reputation as a financial hub has been greatly undermined in recent months in the wake of the new national security law that has raised concerns about the level of influence and control Beijing has over the city. Moreover, restrictions put on the freedom of the press and the independent functioning of the judicial system has also taken its toll on Hong Kong's reputation.

US President Donald Trump after the passing of the new law has stated that Hong Kong is now just another ‘Chinese City’ and has since also rolled back preferential treatment in terms of trading with the city.

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The China Banking and Insurance Regulatory Commission further reiterated that Hong Kong’s financial market was running smoothly and those recent developments would not affect its status as a global financial hub but in fact, the city would be more ‘stable’ and ‘prosperous’ in the future.

The statement also added that multiple foreign financial institutions were expected to join the Chines market, thereby expanding it and making it more robust. As per CBIRC, some foreign financial institutions have already submitted their applications to the agency to open a unit.

The statement from the Chinese regulator also mentioned the impact of the coronavirus pandemic and how it was the disaster of the century. The regulator admitted that in order for the economy to return back to normal after the pandemic, more financial contributions were needed.

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