EWH - U.S. warns companies on risks of doing business in Hong Kong

Nikada/E+ via Getty Images The U.S. government warns U.S. businesses that changes to Hong Kong laws, especially the national security law, could hurt businesses and individuals operating in Hong Kong. All three major U.S. averaged drop soon after. The Nasdaq falls 0.3%, S&P 500 -0.3%, the Dow -0.4%. Bonds rise. The 10-year Treasury yield, which had touched 1.34% earlier this morning, falls to 1.31%. "As a result of these changes, they should be aware of potential reputational, regulatory, financial, and, in certain instances, legal risks associated with their Hong Kong operations," according to a joint statement from the State Department, U.S. Treasury, Department of Commerce, and U.S. Department of Homeland Security. They specifically warn of data privacy risks, risks regarding transparency and access to critical business information, and risks for businesses with exposure to sanctioned Hong Kong or PRC entities or individuals. Relevant ETFs: [[EWH]], [[FLHK]], [[ZHOK]]

For further details see:

U.S. warns companies on risks of doing business in Hong Kong