After a summer filled with protests, Hong Kong leader Carrie Lam will announce the withdrawal of the Chinese extradition bill at 6pm local time. The MSCI Hong Kong Index posted its best gain since 2011 with a 5.4% surge, a rally that was much higher than three standard deviations.  While the extradition bill was initially what sparked a tumultuous summer in Hong Kong, protesters’ demands have expanded to also include full democracy and police accountability. 

Violence might ease in Hong Kong, but the protests are likely to continue until we see the other four demands met; Beijing accepting of Lam’s resignation, an inquiry into police brutality, the release for those who have been arrested and more democratic freedoms. Today’s withdrawal is quite the pivot from yesterday’s comments from China’s top office that hinted they could unilaterally declare a state of an emergency. 

Hong Kong protesters seem focused on a September 8th rally that will petition US congress to pass the Hong Kong Human Rights decency, a possible major complication that could derail longer-term solution. Beijing’s concession here appears to have happened too late and we may just see temporary reprieve with Hong Kong assets.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD remains pressured towards 0.6900 on Australian jobs negative surprise

AUD/USD stays directed towards 0.6900 following a negative surprise in the Australian Employment Change data. Softer wage and jobs data will likely dissuade the RBA from aggressive tightening. Investors assess Fed minutes and US-Taiwan news. 

AUD/USD News

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD drops towards 1.0150 amid risk-aversion, ahead of US data

EUR/USD turns south after rejection at 1.0200 as risk-off flows dominate. US dollar finds demand, despite weaker yields and cautious Fed minutes. The euro looks vulnerable amid the deepening EU energy crisis and growth risks.

EUR/USD News

Gold keeps bearish potential intact towards $1,750

Gold keeps bearish potential intact towards $1,750

Gold price sees a dead cat bounce as the tide turns against bulls. Fed minutes, US-Taiwan geopolitical news and Chinese stimulus hopes lend support. XAU/USD bears need to crack the critical $1,755 level to extend the downside.

Gold News

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price to provide another opportunity before a 50% upswing

Shiba Inu price is on the verge of triggering another run-up, but it needs to allow investors who partook in the previous rally to book profits. As a result, more market participants are likely to flock around the next support level, triggering another leg-up.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures