Hong Kong Stocks Down and USD Jitters Amid Growing Risk Aversion

May 29th, from WikiFX news. Hong Kong stock market tumbled downhill after opening on 28th, falling over 2% at one point. In addition, Renminbi has been depreciating recently mainly due to the USD Index jittering at a high level in the risk-off market.

The Hong Kong SAR under “One Country, Two Systems” policy has arrived at a historical tipping point. As a major global financial hub, Hong Kong now faces the greatest challenge since the 1997 financial storm. Meanwhile, Renminbi rate again experienced fluctuation and CNH once plunged 500bp during the evening of May 27th and early morning of 28th.

The market is risk-off when facing the US-China conflict, and capitals in Hong Kong are especially uneasy, eager to find a safe way out. Although Hong Kong underwent severe social unrest in 2019, foreign investors in Hong Kong are still optimistic about China‘s economic potential the city’s status as a global financial centre. However, the sudden change of situation this month took many by surprise, and some companies are considering moving their the Asia-Pacific headquarters to Singapore.