Hong Kong (AFP)

While many Hong Kong residents fear the new Chinese security law, the business community sees it more as a means of reviving economic activity.

After months of pro-democracy protests, which have plunged Hong Kong into an unprecedented crisis, the Beijing authorities hope it will bring calm to this international financial center.

While rights groups and lawyers fear that this law will be a fatal blow to the autonomy and freedom of expression enjoyed by the territory, many business circles welcome it, hoping for a return. stability.

Earlier this week, the Hong Kong General Chamber of Commerce said the law was "an instrument to help restore stability and confidence in Hong Kong, which has been hit hard by social unrest since last year".

"We need a stable framework and that is what it (security law) will bring".

Last month, the British banking giants, HSBC and Standard Chartered, widely established in Hong Kong and China, joined other companies to support this text.

Analysts and members of the business community, however, point out that while this law could complicate activity in Hong Kong, it is unlikely to lead to a mass exodus of foreign companies.

"In general, business people are still trying to continue to act as if nothing has changed and are trying to avoid political risks," said Ben Bland, a political scientist at the Lowy Institute, an Australian think tank.

So if Jes Staley, CEO of the British bank Barclays, admitted to Bloomberg News that "the political situation is very complicated" but "we are not going to get involved in Hong Kong politics".

A still vague provision of the law, however, causes concern: it concerns the supremacy of the Chinese courts over those of Hong Kong.

The city has become one of the major international financial centers thanks to the reputation for independence of its judicial system.

It is a center for arbitration and conflict resolution, in particular with companies from mainland China.

Under the "One country, two systems" principle, which had governed the handover of the former British colony to China, Hong Kong's legal autonomy was guaranteed until 2047.

- "Rotating plate" -

This helped create a firewall between the territory and the opaque Chinese legal system.

It also made Hong Kong a gateway to China for foreign companies.

This new law could, however, seriously damage this system and the Hong Kong bar said on Thursday "deeply concerned".

It threatens fundamental rights and freedom of expression, said the organization, which also fears that it will sound the end of fair trials.

"In the long run, the law will most likely encourage Beijing and its Hong Kong allies to exert greater political pressure on companies and their employees to adhere closely to the Beijing agenda," William Nee told Bloomberg. Amnesty International.

Analysts recalled the way in which certain companies were subjected to pressure from Beijing on political matters.

Thus, last year, China had reacted severely against the personnel of the Hong Kong company Cathay Pacific accused of having supported the pro-democracy demonstrations.

But Hong Kong's status as a gateway to the Chinese market will continue to prevail, analysts said.

In recent years, billions of dollars from mainland China have continued to be invested in the stock market and in the region's real estate.

At the end of 2019, Chinese companies accounted for 73% of Hong Kong's market capitalization, or 3.400 billion dollars (3.000 billion euros), according to the Hong Kong Business Development Council.

Some of the largest Chinese public and private companies are listed on the stock exchange.

In June, Chinese online giant JD.com raised some 3.5 billion euros on the first day of its IPO, the second largest fundraising in the world by amount since the beginning of the year.

"I think (the law) will make it more difficult to work in Hong Kong" or operate from Hong Kong, "said Jun Bei Liu of Tribeca Investment Partners. However, he believes that the city remains" the plaque to access China. "

© 2020 AFP