The chances of Hong Kong becoming a Police State in the months ahead is rising. Hong Kong equity markets will remain a shorting opportunity through much of 2020.
Violent protests have rocked Hong Kong for the past eight weeks, and judging by the intensity of the anger of the crowds and the lack of political response from the citys leadership, the rage could go on for many more months, permanently destroying Hong Kongs long-held status as a solid and stable global financial center and primary financial gateway of China.
All eyes will be on the meeting at the G20 meeting this week between US President Donald Trump and Chinas President Xi Jinping. A lot is riding on the meeting as the markets are hoping that the two will somehow seek a dtente, and all will go back to normal.