Hong Kong Govt: Removing US special status is 'double-edged sword'

Responding to Washington’s withdrawal of Hong Kong’s special US status, Hong Kong’s government warned late Thursday that such a move could be a “double-edged sword” and called on the US to stay out of the city’s internal affairs.

Key quotes

“Any sanctions are a double-edged sword that will not only harm the interests of Hong Kong but also significantly those of the US.”

“From 2009 to 2018, the US trade surplus with Hong Kong was the biggest among all its trading partners, totalling $297 billion of merchandise and 1,300 U.S. firms are based in the city.”

In a separate statement on Friday, published in several local newspapers, Hong Kong leader Carrie Lam urged “fellow citizens” to “join hands to pursue our dreams while putting aside our differences”.

This comes ahead of the much-awaited announcement from US President Donald Trump on his response to China’s forceful imposition of the national security laws for Hong Kong on Thursday.

Market reaction

The risk-off sentiment remains the key underlying theme so far this Friday, with USD/JPY on the back foot below 107.50 while AUD/USD trades directionless around 0.6640.