Police fire teargas as they charge towards protesters outside the legislative council complex on July 2 2019 in Hong Kong, China. Picture: GETTY/IMAGES/BILLY HC KWOK
Police fire teargas as they charge towards protesters outside the legislative council complex on July 2 2019 in Hong Kong, China. Picture: GETTY/IMAGES/BILLY HC KWOK

Hong Kong — Chaotic scenes of protesters rampaging through Hong Kong’s legislature, trashing furniture and daubing graffiti over walls have sent jitters through the business community, which worries about the effect on the city's status as a financial hub.

Plumes of smoke billowed among gleaming skyscrapers early on Tuesday as police fired teargas to disperse protesters in the heart of the city, home to the offices of some of the world's biggest companies, including global bank HSBC.

Escalating unrest over a controversial extradition bill, which would allow people to be sent to mainland China for trial, grabbed global headlines and clouded Hong Kong's outlook as a finance hub, one of the city's main pillars of growth.

"I think there will be damage to the reputation of Hong Kong," said Yumi Yung, who works in Hong Kong's fintech sector. "Some companies may want to leave Hong Kong, or at least not have their headquarters here."

About 1,500 multinational companies make Hong Kong their Asian home because of its stability and rule of law. Some of the biggest and most violent protests in decades could change that perception.

Hong Kong returned from British to Chinese rule in 1997 under a "one country, two systems" formula that allows freedoms not enjoyed in mainland China, including freedom to protest and an independent judiciary.

Beijing denies interfering but, for many Hong Kong residents, the extradition bill is the latest step in a relentless march towards mainland control. Many fear it would put them at the mercy of courts controlled by the Communist Party where human rights are not guaranteed.

"If this bill is not completely scrapped, I will have no choice but to leave my home, Hong Kong," said Steve, a British lawyer who has worked in Hong Kong for 30 years.

Losing freedom

Others raised concerns about the future of human rights and the territory's judiciary. Many did not want to use their full names.

"To me, the biggest worry is how Hong Kong is losing its independence bit by bit and is getting dangerously close to a country that doesn't value human rights and that doesn't have an independent judicial system," said Edward, an Australian citizen who has worked in the financial sector for 10 years.

The extradition bill has also spooked some Hong Kong tycoons into starting to move their personal wealth offshore, according to financial advisers familiar with the details.

An Australian businessperson who has worked in Hong Kong for 16 years lamented what she saw as Beijing's tightening grip.

"China is just taking away more and more freedom from Hong Kong," she said.

"I feel sorry for Hong Kong people … [who are here] for more freedom, a better economy, a better life, and now it's going backwards," the woman said.

Such concerns came as China's top newspaper warned on Wednesday that outbreaks of lawlessness could damage Hong Kong's reputation and seriously hurt its economy.

While calm has returned for now, the events of recent weeks have set many people thinking.

"If it had escalated, I would consider moving elsewhere," a hedge fund manager said of the ransacking of the city's legislature.

"I employ four to five people in Hong Kong so yes, I would consider moving." 

Reuters