Hong Kong braces itself for fallout from firms leaving China

Hong Kong's importance as a financial centre is set to shrink as foreign firms in China are likely to move their operations out of the country due to growing uncertainties.
Hong Kong's importance as a financial centre is set to shrink as foreign firms in China are likely to move their operations out of the country due to growing uncertainties.PHOTO: EPA-EFE

City's financial hub status will shrink as trade row sees foreign firms move ops out of China

As officials say the escalating trade war between the United States and China will hit Hong Kong hard, observers see the ongoing uncertainty hastening the relocation of foreign firms from China.

And this shift will hit Hong Kong, the mainland's main gateway to the world and the largest offshore yuan hub, which handles around 70 per cent of global yuan payment transactions.

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A version of this article appeared in the print edition of The Straits Times on July 14, 2018, with the headline 'HK braces itself for fallout from firms leaving China'. Print Edition | Subscribe