Security Laws Would Help, Not Harm HK: Joseph Yam

Former Monetary Authority chief Joseph Yam on Sunday hailed Beijing’s controversial decision to bring in national security laws to Hong Kong, saying this will help restore stability here and bolster the territory's status as an international financial centre.

He said the months of anti-government protest and violence have recently morphed into ‘terrorism’ and ‘separatist activities’.

If this isn’t stopped, Yam warned, Hong Kong would never have another day of peace, undermining its status as a finance hub.

Enacting national security laws, he said would restore stability to society, and international financial activities could then continue in Hong Kong without any further worries.

Yam – now an executive councillor – acknowledged that while news of Beijing’s sudden decision had rocked the local market, this is not because investors are worried about the pending legislation itself.

He thinks they’re concerned that the United States could use this as an excuse to step up its attacks on China by ‘weaponising’ finance.

But this, he said would only lead to mainland firms flocking back to Hong Kong, if they’re unable to list in the US.

‘Normal’ market fluctuations, Yam added, would do nothing to affect the fundamentals of Hong Kong’s financial system.

He also said Beijing may speed up the internationalisation of the yuan to ease the world’s reliance on the US dollar – something that would also benefit Hong Kong as a financial hub, Yam argued.