Hong Kong's Financial Resurgence Amidst National Security Crackdown

The article discusses Hong Kong's resurgence as a financial hub, citing recent large equity transactions such as Eastroc Beverage's $1.3 billion secondary listing on the Hong Kong Stock Exchange (HKEX) and Muyuan's upcoming $1.4 billion deal. The article highlights Hong Kong's attractiveness to Chinese companies and its ability to facilitate significant financial transactions. It also touches on the increasing presence of Beijing-style politics in the city. The article suggests that Hong Kong is regaining its financial mojo, attracting more deals and companies, particularly from China.

The leader of Hong Kong, John Lee, has welcomed the 20-year jail sentence given to British pro-democracy campaigner Jimmy Lai, stating that Lai had 'poisoned' the city. The sentencing has been met with criticism from Western nations, including the UK, who have described the prosecution as 'politically motivated'. China has remained defiant in the face of this criticism and has since released a white paper outlining plans to further enhance the national security law that has been used to clamp down on free speech and dissent in Hong Kong. The law has been described as a 'legal shield' that has restored order in the city. Lai's sentencing has been seen as a significant blow to the pro-democracy movement in Hong Kong, with his son describing the sentence as 'essentially a life sentence… a death sentence'.

Japanese Prime Minister Sanae Takaichi's sweeping victory in Sunday's snap election has raised concerns in Beijing that closer ties between Tokyo and Taipei could complicate China's long-term objective of reunifying Taiwan. At Beijing's annual work conference on Taiwan affairs, Wang Huning, the Communist Party's fourth-ranked leader, reaffirmed Beijing's strategy for cross-strait relations, warning against 'interference by external forces' and 'Taiwan independence' separatist forces. Analysts said the language used conveyed Beijing's growing concern that expanding external security cooperation involving Taiwan could narrow its political and strategic room to manoeuvre.

A Hong Kong court has convicted Kwok Yin-sang, the father of pro-democracy activist Anna Kwok, under the city's national security law for attempting to withdraw funds from her insurance policy. Anna Kwok is a wanted activist based in the US and accused of colluding with foreign forces. The conviction is the first under a homegrown national security law, Article 23, and has drawn international criticism for targeting relatives of pro-democracy campaigners. Kwok Yin-sang was found guilty of handling funds belonging to an absconder and faces an upcoming sentence.