- The Russian invasion of Ukraine is likely to accelerate Beijing's long-term economic and military preparations for confrontation in Asia.
- Hong Kong is threatened both by such a confrontation and the preparations for such a confrontation.
- China's growing insularity and aggressiveness reduce the size and scope of Hong Kong's relative advantages.
- Hong Kong's absorption into the mainland is starting to be felt in the slowdown in the city's equity market.
- Asian geopolitical risks, Chinese domestic political risks, and the increasing risk of a global slowdown make Hong Kong equities increasingly unattractive.
For further details see:
EWH: Time To Reprice Asia's Geopolitical Risk