What can China lose in Hong Kong?

CHINA ADVISORY - Report 23 Aug 2019 by Andrew Collier

How important is Hong Kong to China? What will happen -- if and when the protests end -- to the “special” relationship in the financial sector between Hong Kong and the mainland? The argument is often made that China cannot afford to disrupt Hong Kong due to the important role it plays in providing capital for the mainland. We disagree with this due to the small size of capital flows compared with domestic China and the new channels of US dollar financing.

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