Press conference of campaign announcement (Photo source:Epochtimes)

On Strike 

In the People’s Republic of China (P.R.C.) National People’s Congress held on 28th May 2020 in Beijing, the resolution to draft a national security law tailor-made for Hong Kong was passed with dominating votes.  The law is expected to be implemented in Hong Kong as annex 3 of the Basic Law by June the earliest.  The legislation has been destroying “One Country, Two Systems” and the high degree of autonomy, which both have been the foundation for the business in Hong Kong for years, the status of being an international finance center has been one of the greatest beneficiaries in the past few decades.  The Hong Kong Financial Industry Employees General Union (hereafter referred to as “HKFU”) condemns the legislation of the national security law by brutal enforcement.

Therefore, HKFU held a press conference to announce our industrial action on 1st June 2020.

 

CCP’s Evil Law Destroys Hong Kong Universal Strike Protects Our Land

HKFU urge the CCP government to stop the legislation of the national security law before the butterfly effect kicks in. We are calling for members to go on a strike. If we manage to obtain support from 100,000 members by 12 June, we will take the action.

01

Legislative Independence in Doubt, Confidence in Financial System Undermined

The brutal legislation of the national security law has revealed the ambition of the Chinese Communist Party to administer Hong Kong like other cities in China.  The act has demolished the “One Country, Two Systems” and the high degree of autonomy.  The enactment of the legislation by the Beijing government has opened the door to impose laws of China on Hong Kong, which subsequently impaired the legislative independence of Hong Kong.  In view of the abrupt change, the image of a world-class financial centre falls apart.  In the long run, the competitiveness of Hong Kong, an open gateway to China, would lose its ground and would become another generic city of China, while substantial outflow of fund and lowered reputational assessments and ratings are expected to happen as soon as the legislation is enacted.

02

The Sanctions from the United States and the Impact

In the first half of the year, the pandemic turmoil has brought considerable impact and the uncertainties to the stock market and the commodity market.  Retail banking has suffered from the first wave of impact.  Take HSBC as an example, it has announced the plan to cut 35,000 headcounts to maintain a fair level of profit.  The sanction from the United States is said to be imposed against the Chinese banks.  In case Swift is no longer available for Chinese banks, this would cause a menace to the trade business in banks and another wave of job cuts would emerge.

03

The USD-HKD Peg

The stabilized Hong Kong dollar currency has brought countless benefits to trading in Hong Kong since the 1980s. The peg is a mechanism that HKMA to sell/buy HKD/USD pair to maintain the exchange rate between 7.75 and 7.85. The FX trades are among the HKMA and the three banknotes issuing banks.  As Hong Kong dollar is a tradable currency on the international market, the FX trades in Hong Kong are directly reflected in the global market.  However, with any sanctions on the trade with USD, the peg would be of no effect as the currency exchange happened in Hong Kong would be concealed in Hong Kong local only, the exchange rate of HKD / USD would be off the board of global markets, which a substantial depreciation of HKD would be expected.

04

The Trade Sanctions from the U.S. is the Result of the Worship to CCP by Carrie Lam’s Administration

The tariffs and trade arrangement of Hong Kong has been independent of China since the 1990s and HKSAR has managed to maintain the favoured rate with the U.S. since its return of sovereignty to China.  However, the U.S. has announced to start the process of revoking this special arrangement between Hong Kong and the U.S. The HKFU is worried about the impact it may bring to the industry.