Market Overview

Hong Kong Pro-Democracy Lawmakers Resign Following China Ruling

Hong Kong Pro-Democracy Lawmakers Resign Following China Ruling

The members of the Hong Kong's elected pro-democracy opposition announced they will resign on Wednesday in protest over four lawmakers being expelled, reports the BBC.

What Happened: Earlier this year, China passed a wide-ranging security law for Hong Kong that makes it easier to punish protesters and reduces the city's autonomy.

On Wednesday, Beijing passed a resolution allowing the city's government to dismiss politicians who are deemed a threat to national security.

This decision was passed by China's legislative body, which allows Hong Kong's executive to expel elected lawmakers directly without having to go through the courts.

Why It Matters: This decision is cementing Beijing's control over Hong Kong, which is a semi-autonomous territory. The lawmakers seen to promote or support Hong Kong independence, or those who refuse to acknowledge Beijing's sovereignty, will "immediately lose their qualifications," reports the BBC.

US Sanctions Imposed: On Monday, the U.S. Treasury and State Department imposed sanctions on four Chinese officials in Hong Kong’s governing and security establishment over their alleged role in crushing dissent in the former British colony, reports Reuters.

Price Action: The iShares MSCI Hong Kong ETF (NYSE: EWH) was down 0.34% at $23.80 at last check. 

The Franklin FTSE Hong Kong ETF (NYSE: FLHK) was up 11.32% at $25.18. 

The SPDR Solactive Hong Kong ETF (NYSE: ZHOK) was down 0.82% at $62.90. 

Related Link: Hong Kong Police Enforce New Security Law, China Warns UK Not To Interfere


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