Protests rattle Hong Kong. But companies haven't left town yet
"Plus, all the conditions that make Hong Kong one of the best trading and investment platforms have not changed," he added. For example, the city has programs that facilitate investment between China and the rest of the world. "I don't see it as a financial center shaken."
Despite the rise of mainland cities such as Shanghai and Shenzhen, Hong Kong is still China's global financial center. Chinese companies use the city as a place to raise capital and expand their investor base, or as a launch pad for expansion abroad. Many Chinese investors use Hong Kong as a way to spend money abroad.
However, it is important that the rest of the world also uses Hong Kong as a gateway. The city's semi-autonomous justice system and close ties to the mainland give Western companies an important link to the world's second largest economy.
The city's stock market is an important measure of trust for companies looking to raise capital and investors. Revenue from the public offering in Hong Kong has reached $ 22.3 billion this year, according to data from Refinitive, placing it third on the Nasdaq and New York Stock Exchange.
"China is still the fastest growing market in the world. Investors are enthusiastic about taking advantage of the opportunities here," Huang said, adding that Hong Kong also means something economic. "Despite what has happened on the street, I do not think the role of a crucial pipeline for money between China and the rest of the world will diminish. At least not now."
IPOs in Hong Kong has jumped since AB InBev started trading in late September. In October, 22 companies debuted on the Hong Kong market, against seven in September and one in August. There have been 16 new listings in November so far.
Short-term concerns
Protesters even blocked streets this week in the city's central business district – an unusual sight of the day during the more than five months of demonstrations.
Traders, however, see the stock market shake as a short-term issue.
"Overall, the market is dominated by companies whose businesses are located elsewhere, mostly in China," said Ken Wong, Asia specialist in the equity portfolio at Eastspring Investments. "I would say that the US-China trade war is a bigger factor driving the market in the longer term."
The Hong Kong stock market is still showing a positive return for 2019. The Hang Seng Index, which is mostly Chinese companies, has increased 2.8% since the beginning of the year.
"The protests are a geopolitical event. But in business, it's a different story," added Wong .
Money in the money market
There are some signs of tension in Hong Kong's financial markets. The city's offer of a one-month interbank rate, a short-term loan rate between the banks, hit 2.39% Wednesday – the highest in three months.
A higher interest rate on interbank loans means that it is more expensive to borrow money and is usually triggered by a cash flow.
The Hong Kong Monetary Authority – the city's de facto central bank – said earlier this week that the city's banking system is still solid and has good liquidity.
Meanwhile, Wong said the borrowing rate was far lower than during the Asian Asian crisis and the global financial crisis of 2008.
"In 1997, tensions were high in Hong Kong's financial market, when the Hong Kong dollar and the banking system were attacked," he said . "But today the financial system is solid. I haven't seen any panic yet."