Being an international financial center, Hong Kong has long been proud of its free flow of capital, sound financial infrastructure, an influx of talent from across the world and an independent legal system.
However, China’s plans to impose national security legislation on Hong Kong have raised concerns about a potential flight of capital and talent from the financial hub. US Secretary of the Treasury Steven Mnuchin’s remarks on Thursday last week that he was working on measures that could restrict capital flows through Hong Kong signified that Washington’s responses to Beijing’s security legislation are not merely verbal threats, but actions in the making.