A man wears mask to prevent a new coronavirus outbreak as he uses his mobile, with skyline in the background of Hong Kong, China, Jan. 29.Have HSBC and Standard Chartered “chosen profits over human rights” in backing China’s national security law for Hong Kong, as some suggest? Or does it reflect the tightrope businesses must navigate between Hong Kong’s protesters and Beijing?
One silver lining may be more IPOs by Chinese firms ditching their New York listings or mainland newcomers debuting in Hong Kong rather than on Nasdaq.But as Beijing tightens its grip, an American Chamber of Commerce survey showed 30% of respondents were considering moving capital, assets or business operations. Heed Western warnings or stick with Beijing? It’s a choice more companies will have to make.
That may train more attention on the curve; the 5-year/30-year segment is at the steepest since end-2017, rising around 30 bps in the past month. Few expect Fed action this month but it may well signal additional bond-buying or yield curve control measures ahead -Bond investors look for Fed to justify steepening yield curveA man walks towards the European Central Bank headquarters in Frankfurt, Germany, July 25, 2019.