First National Security Arrests Made
China’s new, highly controversial, National Security Law came into effect in Hong Kong this week. The law, which received a great amount of criticism from the national community, marks the first time that Chinese law has been written into the Hong Kong penal code and has essentially given China the power to police Hong Kong, removing power from the semi-autonomous region.
With law rushed into effect late on Tuesday night, one day ahead of the 23rd anniversary of the handing over of Hong Kong from Britain to China, protests broke out across Hong Kong on Wednesday. More than 370 people were arrested, including ten suspected of breaking the new National Security Law, and reports indicate that several officers were injured, including one who was stabbed non-fatally.
As pro-democracy protests broke out in Hong Kong last year, it was the US who made the main intervention, publicly criticising the Chinese government and passing a bill supporting the rights of the protestors there. This time around, however, it has been the UK which has taken the lead.
UK Announces Hong Kong Visa Offer
Speaking in parliament this week, the UK PM announced that China was in a “clear and serious” violation of the treaty between itself and the UK, established when Hong Kong was handed over in 1997, and detailed a new 5 year visa to be offered to Hong Kong citizens wishing to come to the UK.
Speaking at the weekly PMQs on Wednesday, Johnson said: “We have made clear that if China continued down this path we would introduce a new route to those with British national (overseas) status to enter the UK granting them limited leave to remain with the ability to live and work in the UK and thereafter to apply for citizenship, and that is precisely what we will do now.”
China Warns UK To Stop Interfering
However, news of the UK’s visa offer to Hong Kong citizens has provoked anger in China. A spokesperson from the Chinese Embassy on Thursday told reporters that China “firmly opposes” the PM’s offer, which it says is in violation of international law, and warned the UK to stop “interfering” in its affairs with Hong Kong.
In a statement issued, the Chinese embassy said: “If the British side makes unilateral changes to the relevant practice, it will breach its own position and pledges as well as international law and basic norms governing international relations.
“We firmly oppose this and reserve the right to take corresponding measures. We urge the British side to view objectively and fairly the national security legislation for Hong Kong, respect China’s position and concerns, refrain from interfering in Hong Kong affairs in any way.”
HANG SENG (Bullish above 25269.2)
From a technical viewpoint. The HANG SENG continues to trade within a large ascending triangle held up by the yearly S1 at 25269.2. With VWAP supportive, and now back above the monthly pivot, the near-term bias remains bullish with an eventual break of the yearly S1 the preferred view. Once above, the main objective will be a move back up to the yearly pivot at 27789.3.
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