Weekly

US President Trump officially signed the Hong Kong Autonomy Act and an executive order on Tuesday local time in the United States to remove Hong Kong's preferential treatment.

It also imposed sanctions on people and officials who assisted Beijing in rudely implementing the National Security Law of the Port Area and oppressed Hong Kong's human rights and freedoms. The act came into effect immediately,

However, before implementation, the State Department of the United States should submit a report to Congress within 90 days, listing those who "actually assisted China in violating its responsibilities" and related institutions, and should submit a report every year.

So as to assess the situation in Hong Kong and draw up a new sanctions list. The most powerful thing is that the bill authorizes the President of the United States to impose sanctions such as freezing assets and prohibiting entry into the United States on named officials and institutions.

What's more, the bill also restricts all financial institutions that do business with the list. In extreme cases, the United States can prohibit them from using US dollars, not only referring to banks, but also possibly insurance companies.

According to informed sources, in order to avoid further escalation of tensions with the Beijing government, Hong Kong Chief Executive Carrie Lam and Vice Premier Han Zheng, who is in charge of Hong Kong affairs, have been removed from the established list of sanctions against Chinese officials.

The Chinese Foreign Ministry responded immediately yesterday, strongly condemning the United States for signing the Hong Kong Autonomy Act, grossly interfering in Hong Kong affairs and China's internal affairs, and committing international practices. China will impose corresponding sanctions on the United States.

However, the details were not disclosed. Other officials suggested that it was illegal for financial institutions to implement the Hong Kong Autonomy Act in China. The banking industry in Hong Kong bears the brunt, because the two sides caught in the gap are not people.

The United States has been the overlord of the financial industry for a long time, and the US dollar is an international trading currency, so it can be easily abandoned. However, according to the attitude of the Chinese side, if the banks comply with the sanctions orders of the US, they may have difficulties in operating in Hong Kong!

Affected by negative news, stocks in Shanghai and Shenzhen fell yesterday, down 1.6% and 1.9% respectively. Among the three major note-issuing banks in Hong Kong, only BOC Hong Kong's share price fell. Last night, the United States announced last week's US crude oil inventories.

The figure decreased by 7.5 million barrels, which greatly exceeded market expectations. The news stimulated the rise of oil prices, but the market said that OPEC＋+intends to reduce the production reduction agreement from August, from the current daily production reduction of 9.7 million barrels to 7.7 million barrels.

The news limited the increase in oil prices, but new york oil futures still reached the highest closing price in more than four months, at $41.2 per barrel, up 91 cents. The gold price rose in a narrow range yesterday, with the US dollar index falling below 96 and reaching a one-month low of 95.8, which made the gold price rise.

The highest rose to $1,815, but the market dropped because of vaccine news, and finally closed at $1,812 per ounce, up $2.

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