By Stephen S. Roach, Project Syndicate | Nov 27, 2025
Even though Hong Kong’s financial sector has rebounded, with a high-flying Hang Seng Index and a return to the top spot in the global IPO rankings, the city is still a diminished version of itself. China’s stifling influence on Hong Kong’s governance has eroded its position as an international entrepôt.
The shift accelerated after China introduced a 20% tax on income and gains from overseas trusts held by Chinese tax residents.
Disraeli repeatedly explicitly warned against “world revolution” (or colour revolutions in today’s vernacular).
When criminal enterprises are allowed to exploit free markets, public confidence in capitalism suffers, potentially making alternatives like socialism more appealing.
After a few days of violence and destruction, the political implications inevitably break out. The New York Times front page on Oct. 20 lamented: “French Right Has Opening In Upheaval: Riots Fit Rhetoric as Election Approaches.”
The shift accelerated after China introduced a 20% tax on income and gains from overseas trusts held by Chinese tax residents.
Investors are also monitoring debt levels, with HB Wealth generally avoiding real estate funds using leverage above 65%.
Brent rose 1.1% to $114.49, putting it on track for a third consecutive weekly gain
