The most vocal issue on the market today as the US begins it’s Thanksgiving holiday is a signing into law 3 Hong Kong bills by president Trump. The bills, previously voted in Congress, support Hong Kong protesters and are seen as a possible wedge between sides in trade talks that have been pumping market optimism recently. But what these bill actually mean? The US will reconsider Hong Kong’s special trade status annually but it’s unlikely to change it because it would affect Hong Kong people much more than China. Trump is also unlikely to issue sanctions on officials and ban on exports of tear gas and rubber bullets also has marginal significance. The move is mostly symbolic and repercussions will depend on the Chinese reaction. Hong Kong protesters will surely try to leverage this symbol – they already announced a pro-US rally, something that could cause outrage in Beijing. Now the Chinese officials will need to weigh the consequences of their response beyond wording.
So far the impact of Trump signings have been limited. Trump intentionally chose to do it after market close on Wednesday but even HKComp barely moved. Source: xStation5
