Hong Kong News

Hong Kong's oldest pro-democracy party, the Democratic Party, is set to disband due to increasing pressure from Chinese authorities. Established over 30 years ago, the party has been pivotal in the city's opposition movement. According to longtime members, the leadership received clear warnings from Beijing to cease operations or face dire consequences. Yeung Sum, a former chairman, stated, "The message was that the party has to be disbanded or there will be consequences." Current party leader Lo Kin-hei reported that approximately 90% of the party's 110 members have agreed to delegate authority to a committee for disbandment. He expressed hope for a final vote in the coming months, emphasizing the party's commitment to serving the people of Hong Kong. Founded by liberal lawyers and academics prior to Hong Kong's handover to China in 1997, the Democratic Party has historically advocated for universal suffrage and various social issues. However, since 2022, the Chinese government has systematically curtailed Hong Kong's political freedoms, undermining the autonomy promised under the 1984 Sino-British Joint Declaration.

Hong Kong's Chief Justice Andrew Cheung has attributed the recent departure of foreign judges from the judiciary to increasing geopolitical tensions and "orchestrated harassment." Speaking at the ceremonial opening of the legal year, Cheung acknowledged the changing political landscape but defended the city’s legal processes as “transparent, fair and independent.” The exodus has followed the implementation of a sweeping National Security Law (NSL) by Beijing in 2020, which was enacted after pro-democracy protests. Critics argue that the NSL is overly broad and begins to compromise procedural fairness. Since the law's introduction, eight of the fifteen overseas judges from Hong Kong’s court of final appeal have either resigned or chosen not to renew their appointments, including notable figures like British judge Lord Jonathan Sumption. Cheung stated that while he respects the judges' choices to leave early “on account of political or other considerations,” he emphasized that the integrity of Hong Kong’s judiciary remains intact, asserting that the court is still equipped with experienced personnel. The Chief Justice highlighted the significance of political pressure affecting the judiciary, drawing attention to what he called a trend of politicizing the role of foreign judges in the court. The remarks come at a time when pro-democracy groups in Hong Kong are calling for the departure of foreign judges, citing concerns about legitimacy within a system reportedly being used to target political opposition. The political climate has resulted in thousands of arrests, with many facing charges under the NSL, including prominent figures such as media tycoon Jimmy Lai.

China has announced the establishment of a new 100 billion yuan (approximately $13 billion) trade finance facility, aimed at reinforcing Hong Kong's position as an offshore yuan financing hub. This initiative, revealed by officials, includes measures to expand access for mainland investors to foreign-currency bonds traded in the city. The People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) will provide liquidity support for banks, allowing them to offer yuan funding to their clients for periods of one, three, and six months. PBOC Governor Pan Gongsheng emphasized the importance of a robust capital market in maintaining Hong Kong's status as an international financial center during the Asian Financial Forum. The new facility is an enhancement over an existing overnight-only funding product. HKMA Chief Executive Eddie Yue stated that this upgrade will encourage companies and banks to utilize yuan for trade settlements. Additionally, adjustments will be made to the cross-border Bond Connect scheme, allowing mainland investors previously limited to yuan-denominated bonds to also invest in securities priced in other currencies, including U.S. dollars and euros. Plans are also in place to permit more institutional investors, such as insurers, to participate in the Hong Kong bond market. This initiative aims to attract more businesses to use Hong Kong for yuan-related transactions and reinforce the city's appeal as a financial hub.