See the stock market crash in summer 2015
Let The Economist explain:
AIIB needs HK ‘s role as an international financial center 亞投行終歸要靠香港
among those 2.45 percent of international payments carried out in RMB, 70 percent are transactions done in Hong Kong… the internationalization of the RMB that makes the currency fulfil the IMF technical requirements is mostly about the RMB-ization of the Hong Kong economy so far. It involves the increase of RMB deposits in Hong Kong banks, sales of RMB-denominated “dim sum bonds” in Hong Kong, and the “through train” Hong Kong-Shanghai stock arrangement, etc.. The increasing use of RMB in Hong Kong has been carefully managed by Beijing under a quota regime. As such, RMB’s “free usability” in the world is in large part attributable to its “free usability” in Hong Kong, and China’s opening of capital account to the world is mostly its controlled opening to Hong Kong. The “free usability” of the RMB is way different from the “free usability” of the existing currencies in the SDR basket. RMB remains not fully convertible, and China’s capital account remains quite impermeable.
Despite China’s stock market tumult this year, mainland banks and asset managers are crowding into Central in hopes of drumming up new business with foreign clients. The moves are further cementing Hong Kong’s status as the prime gateway into and out of China, property experts and bank analysts say.
Panama papers show that HK is a money-laundering hot spot for Chinese money : How Hong Kong makes it easy for wealthy Chinese to launder billions of dollars ; Hong Kong tops for secretive offshore financial services, according to leaked docs ; Hong Kong, Singapore implicated in ‘Panama papers’ rich people scandal ;【真・萬能插蘇】中法澳權貴轉移資產 均經香港 ;【巴拿馬文件】香港為第二大洗錢聖地 解放軍若鎮壓 各國政要好傷 ; All mention of Panama Papers banned from Chinese websites
Special Report: The mainland’s colonization of the Hong Kong economy (Reuters)
Direct investment access to China threatens Hong Kong—It has long been the gateway to China, but new systems and products are undermining its status
And how dependent is HK on water and food from mainland China?
The Xi-Ma meeting in Singapore did not mention “one country, two systems”, HK is of little value left「習馬會」不提「一國兩制」 香港利用價值所餘無幾