Two early birthday gifts landed in Hong Kong’s lap ahead of the 20th anniversary of its establishment as a special administrative region SAR a bond trading link and a credit rating downgrade. Together they illustrate the prosperous yet potentially hazardous links that bind the two together and the delicate balancing act facing Hong Kong.
China officially blessed the trading link, dubbed Bond Connect, with Hong Kong on May 16, enhancing the Chinese SAR’s position as a hub for global investors seeking access to the mainland’s fast-growing markets.
Then eight days later, Moody’s cut Hong Kong’s credit...
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