China just passed its national security law toward Hong Kong district that officially terminated its “One-Country Two-Systems” stands it claimed since 1997. Outcome is like another heavyweight weapon casting out from China after the COVD-19 virus. Due to Hong Kong’s financial importance in the globe in terms of trades, business, and currency that tied global economy together, its effect could be significant for months to come.
China currency RMB vs US dollar quickly depreciated to 7.15 (1 US dollar equals 7.15 Yuan). Technically, crossing this level means RMB could head to 8 or multi-year low level.
Trump is expected to talk about this agenda tomorrow which gave the stock markets a pause on rally in the last trading hour today. The US and China already had issues in trade deals, COVD-19 virus, and now adding Hong Kong into the formula. It is likely to have more negative impact on stock markets.