Hong Kong economy

It was anything but an ordinary afternoon for Hong Kong stocks as Chinese lawmakers approved a controversial plan to impose national security legislation for the city.

The future remains uncertain but Hong Kong's economy remains steady for now.

Shares in Singapore Exchange Ltd. plunged after MSCI Inc. announced it will move licensing for derivatives products on a host of gauges to Hong Kong from Singapore.

Pessimism toward some Hong Kong real estate stocks, especially those of landlords, hasn’t been this extreme since the global financial crisis as investors worry about the future of the city.

The MSCI Hong Kong Index fell 6.8% on Friday, which would be its biggest slump on a closing basis since October 2008.

Stocks slid and U.S. equity futures retreated as investors braced for tensions between Washington and Beijing to escalate after China announced plans to impose a national security law on Hong Kong.

Beijing’s surprise plan to impose a national security law is spurring a new wave of selling.

While some financial firms are conducting interviews by video conference or phone, closing the deal is more problematic, especially at investment banks and wealth-management units.

(Jan 10): Hong Kong’s government is preparing to spend “boldly” to shore up the finance hub’s tumbling economy, Financial Secretary Paul Chan said in an exclusive interview.