Well-known U.S. Chinese language newspaper, World Journal , recently reported that global ratings company, Fitch Ratings, has lowered Hong Kong’s sovereign rating twice since last September. The rating factored in the impact of the Hong Kong National Security Law that the central government imposed. Also aspects that were included in and influenced the rating were the risks in Hong Kong’s legislative system and the position that the United States has taken. If, in the future, local and international investors lose confidence in Hong Kong’s environment and its way of doing business, it is possible the rating could go down further. It is too early to draw a conclusion and the situation remains to be examined in the near future. Currently Hong Kong’s sovereign rating is only one step higher than Mainland China. It appears the Hong Kong society is steadily merging into Mainland China’s administrative system. However, the Chinese government said Hong Kong’s status remains very stable.
Source: World Journal, June 23, 2020