Hong Kong Protests will Continue; Lam to withdraw extradition bill

After a summer filled with protests, Hong Kong leader Carrie Lam will announce the withdrawal of the Chinese extradition bill at 6pm local time.  The MSCI Hong Kong Index posted its best gain since 2011 with a 5.4% surge, a rally that was much higher than three standard deviations.  While the extradition bill was initially what sparked a tumultuous summer in Hong Kong, protesters’ demands have expanded to also include full democracy and police accountability.

Violence might ease in Hong Kong, but the protests are likely to continue until we see the other four demands met; Beijing accepting of Lam’s resignation, an inquiry into police brutality, the release for those who have been arrested and more democratic freedoms.  Today’s withdrawal is quite the pivot from yesterday’s comments from China’s top office that hinted they could unilaterally declare a state of an emergency.

Hong Kong protesters seem focused on a September 8th rally that will petition US congress to pass the Hong Kong Human Rights decency, a possible major complication that could derail longer-term solution.  Beijing’s concession here appears to have happened too late and we may just see temporary reprieve with Hong Kong assets.  The Hong Kong dollar is higher by 0.06%.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya
Ed Moya

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