Hong Kong security law: US may restrict capital flows through city, Treasury Secretary Steven Mnuchin says

Name: Hong Kong and the US: how much do they rely on each other economically?
Uploaded: 2020-06-12T04:24:54.000Z
Duration: 6 min 21 s
Description: Hong Kong and the US: how much do they rely on each other economically?

President’s Working Group on Capital Markets is developing response to protect US investors from China firms that do not follow US accounting rules

Plans for the new law, which critics say will erode Hong Kong’s autonomy, have already prompted US President Donald Trump to begin withdrawal of Hong Kong’s special treatment

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US Treasury Secretary Steven Mnuchin said his primary focus in the United States’ response to China’s Hong Kong clampdown was through the President’s Working Group on Capital Markets, an inter-agency group of US financial regulators. Photo: AFP

Reuters

Published: 12:24pm, 12 Jun 2020Updated: 12:09am, 13 Jun 2020

US Treasury Secretary Steven Mnuchin said on Thursday he was working on various capital markets responses to China’s national security law for Hong Kong, including some measures that could restrict capital flows through the city.

Mnuchin said his primary focus in the United States’ response to China’s Hong Kong clampdown was through the President’s Working Group on Capital Markets, an inter-agency group of US financial regulators.

US President Donald Trump ordered the US Treasury-led group last week to recommend in 60 days actions to protect US investors from Chinese companies’ failure to adhere to US accounting standards and disclosure rules.

Asked if the US Treasury was considering measures that could restrict flows of US capital through the Hong Kong market, Mnuchin said: “We are I don’t want to prejudge what the report will be, but we will come back with a variety of recommendations.”

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Hong Kong and the US: how much do they rely on each other economically?

Mnuchin said the President’s Working Group will examine accounting issues related to Chinese companies and will produce a thorough report “that strikes the right balance between protecting our capital markets and dealing with this situation as well”.