Hong Kong’s new national security law‘s ambiguous rules governing state secrets and connections to foreign companies have stifled many international companies operating in the financial hub. Some experts and hedge funds have updated their contingency plans and sought legal counsel to combat this political risk.
According to an executive with decades of experience as an advisor to foreign firms, some corporations are presently treating Hong Kong, when a big Asian base for multinationals, the same way they treat mainland China and shielding information about the rest of the company from teams it.
Due to the state secrets laws, another executive claimed that his hedge fund was looking for legal counsel regarding how to deal with authorities and other government officials.
A foreign administrative who recently had a meeting with top Hong Kong authorities said,” It boils down to a lack of confidence in the Hong Kong government, that is indebted to China.”
Due to the sensitivity surrounding safety concerns, the three professionals, along with the more than a few entrepreneurs Reuters spoke to, declined to get identified.
The law, which updates a broad national security law that China imposed four years ago and includes stiffer penalties for crimes like sedition and external interference, was unanimously approved by the Hong Kong legislature on Tuesday ( Mar 19 ).
The law takes effect on Saturday, Mar 23. Different business organizations have endorsed the Hong Kong General Chamber of Commerce’s plan to make the city” a safer place for local and foreign businesses and professionals operating it.”