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Risk Warning on Trading HK Stocks

Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.

HK Stock Trading Fees and Taxation

Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.

HK Non-Essential Consumer Goods Industry

The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.

HK Real Estate Industry

In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.

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      Bessent: Supreme Court Unlikely to Block Trump Tariffs

      King Ten
      Remarks of OfficialsEconomicPolitical
      Summary:

      Top Treasury official suggests High Court will affirm Trump's emergency tariffs, notably on Europe over Greenland.

      Treasury Secretary Scott Bessent stated Sunday that he believes it is “very unlikely” the Supreme Court will strike down President Donald Trump’s use of emergency powers to levy tariffs. A decision from the court on the matter could arrive as soon as this week.

      Speaking on NBC's "Meet the Press," Bessent argued that the court is hesitant to invalidate a president's signature economic policy. He drew a parallel to the Affordable Care Act, which the court upheld, suggesting that justices "do not want to create chaos."

      Figure 1: Treasury Secretary Scott Bessent discussing the administration's use of emergency economic powers.

      New Tariffs Target Europe Over Greenland

      Bessent’s remarks followed President Trump’s announcement of new tariffs on European goods. The president declared the duties would remain until “a Deal is reached for the Complete and Total purchase of Greenland.”

      While Trump’s Truth Social post did not cite a specific statute, the action mirrors previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Supreme Court is currently reviewing the president's use of this law.

      The Legal and National Security Justification

      The IEEPA grants a president broad authority to deploy economic measures when facing an “unusual and extraordinary threat.”

      According to Bessent, the new tariffs are a direct response to a national emergency. "The national emergency is avoiding a national emergency," he explained, calling it a "strategic decision by the president." Bessent added that Trump is using "the economic might of the U.S. to avoid a hot war."

      The Geopolitical Push for Greenland

      President Trump has long pursued the acquisition of Greenland, an Arctic territory of Denmark, recently intensifying his campaign for a U.S. takeover. His demands have been consistently rejected by leaders in Greenland, Denmark, and across Europe.

      The administration argues that U.S. control of Greenland is a national security imperative needed to counter Russian and Chinese expansion in the strategically important Arctic region.

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