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«[T]he enactment of a vaguely defined national security law will make it harder to recruit and retain top tier talent,» said the American Chamber of Commerce in Hong Kong in an issued statement. «Already recruitment of international talent to Hong Kong has slowed.»

4. Hong Kong Dollar

Most of the financial sector sees little to no foreseeable risk to the Hong Kong dollar peg not only due to market dynamics but also Beijing’s continued desire for stable access to the greenback. 

Although there may be more headwinds ahead with threats from U.S. treasury secretary Steven Mnuchin of potential restrictions to capital flow, this could be offset by the buffer the government has claimed it has at its disposal in the form of a currency swap line with the People’s Bank of China.

5. Business as Usual?

Will freedoms be sufficiently retained to maintain business continuity such as the quality of market research or investment advice? Could changes in end-client behavior, such as booking center shifts, require strategic adjustments to the business?  Will permanent calm return to the central business district or will unrest persist? Could banks – most notably, HSBC – and bankers become more politically active?

Ultimately, stability and certainty reign supreme for any business anywhere. Post-legislation, continuity or the degree of disruption will be carefully monitored and assessed to define the new norm if there is indeed one.