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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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      EU-Mercosur Deal Sparks Political Crisis in France

      Isaac Bennett
      Remarks of OfficialsEconomicPolitical
      Summary:

      France's far-left and far-right launch no-confidence motions against Macron's government, escalating a political battle over the controversial EU-Mercosur trade deal.

      France’s far-right and far-left opposition parties are launching no-confidence motions against the government, escalating a political battle over the European Union's controversial trade deal with the South American Mercosur bloc.

      The moves from France Unbowed (LFI) on the far-left and the National Rally (RN) on the far-right directly challenge President Emmanuel Macron’s weak minority government. This showdown highlights the severe domestic backlash over the trade accord, which critics argue will harm French farmers.

      Protesters, including farmers, demonstrate in Paris against the impending EU-Mercosur trade agreement as political opposition mounts against the government.

      Opposition Unites to Challenge Government

      The far-left LFI announced it would file its no-confidence motion on Friday morning. The far-right RN said it would also launch a motion, taking aim at the European Commission chief in Brussels.

      While it is unlikely that the LFI and RN will gather enough votes in parliament to oust Prime Minister Sebastien Lecornu's government, the threats underscore the intense pressure on Macron's administration. The government is already struggling to pass its 2026 budget through a defiant parliament, and this crisis adds another layer of instability just over a year before the 2027 presidential election.

      Leading opposition figures have fiercely criticized the government's position:

      • Jordan Bardella, president of the RN, called Macron's pledge to vote against the deal mere posturing, labeling it "a betrayal of French farmers."

      • Marine Le Pen, RN party chief, urged Macron to suspend France's contribution to the EU budget if necessary.

      • Mathilde Panot, LFI’s lower house leader, declared that France had been "humiliated" and that "Lecornu and Macron must go."

      France's "No" Vote Won't Stop the Deal

      President Macron has stated that France will vote against the Mercosur agreement. However, the treaty's approval mechanism within the EU means France's opposition may not be enough to stop it.

      The deal only requires a qualified majority among EU member states to be signed, not unanimous consent. After that, it would need to be ratified by the European Parliament. With major EU powers like Germany and Spain supporting the accord, it is widely expected to be approved on Friday.

      Supporters argue the deal is a vital strategic move to open new markets, providing an alternative to U.S. tariffs and reducing economic reliance on China. But opponents, led by France—the EU's largest agricultural producer—warn that the agreement will lead to a surge in cheap food imports that will undercut domestic farmers.

      Farmer Protests Erupt Across Paris

      In response to the deal's likely approval, French farmers have already taken to the streets. On Friday, the Confederation Paysanne farmers' lobby group organized a new protest.

      French farmers with the Confederation Paysanne use tractors to block highway traffic around Paris, expressing their opposition to the EU-Mercosur trade deal.

      Tractors drove slowly to block traffic on the main highway circling Paris, with one vehicle displaying a clear message: "Stop the EU-Mercosur Agreement!" The protest demonstrates the growing anger among agricultural communities, who feel their livelihoods are threatened by the international trade pact.

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