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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.

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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.

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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.

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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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      US Hardens Greenland Stance with Tariff Threats

      Isaac Bennett
      PoliticalRemarks of OfficialsEconomicRussia-Ukraine ConflictEnergy
      Summary:

      The Trump administration cites European security weakness in its aggressive bid for Greenland, leveraging tariffs and risking NATO.

      Europe's Security is Too Weak, Says Bessent

      The Trump administration is escalating its campaign to acquire Greenland, with Treasury Secretary Scott Bessent declaring that European allies are too weak to manage their own security. Amplifying President Donald Trump's message, Bessent signaled the United States will not back down from its objective.

      In an interview with NBC's Meet the Press, Bessent dismissed European Union threats to halt a pending trade agreement. He argued that President Trump is prepared to use strategic leverage, including emergency powers, to achieve his goals.

      "First of all, the trade deal hasn't been finalized, and an emergency action can be very different from another trade deal," Bessent stated, emphasizing that Trump "leverages his emergency powers to do this."

      Tariffs Tied Directly to Greenland Purchase

      The administration is backing its demands with direct economic pressure. President Trump has announced a 10% tariff on goods from eight European countries, scheduled to begin on February 1. The tariffs are set to increase to 25% in June unless a deal for the "purchase of Greenland" is reached.

      The move has drawn sharp criticism from European leaders. French President Emmanuel Macron labeled the tariff "unacceptable" and plans to ask the EU to activate its strongest retaliatory measures.

      The Strategic Rationale for US Control

      Bessent outlined a broad strategic vision behind the push for Greenland. The administration's justification rests on several key pillars:

      • Arctic Competition: Securing a strategic foothold in a region of growing global importance.

      • Missile Defense: Advancing plans for a "Golden Dome" missile shield.

      • Energy Security: Countering Europe's reliance on Russian energy, which Bessent claimed was "funding Russia's efforts against Ukraine."

      When asked if the aggressive stance was merely a negotiating tactic, Bessent made it clear the president would not change his position. "Europeans project weakness, US projects strength," he said. "The president believes enhanced security is not possible without Greenland being part of the US."

      A Challenge to the NATO Alliance

      The administration's demands have raised concerns that the move could fracture the North Atlantic Treaty Alliance (NATO). Bessent, however, dismissed the idea that forcing the Greenland issue could end the seven-decade-old alliance, calling it "a false choice."

      He confidently predicted that European leaders would ultimately concede to the American position. "The European leaders will come around," Bessent told NBC, "and they will understand that they need to be under the US security umbrella."

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