[dmurray]

It's not about geopolitics, it's about economics.

China has been extremely pragmatic and results-oriented. When Hong Kong was the most economically successful part of China, they were happy to leave it be and learn some lessons from it. Now the rest of China has largely caught up and it's time for them to make HK more like Shenzhen, rather than the other way around.

[spectramax]

Giving that Shanghai stock market trades more than HK, that argument doesn't hold up. China didn't need HK. They did not want a western-aligned population of 7M people within 40km of its borders and instead decided to deal with them with a heavy hand.

I think China played their hand too soon and the west is waking up to it.

[dmurray]

"Shanghai stock market trades more than HK" is a strange rebuttal to my argument. You presumably mean that's true now, rather than 20 years ago when China decided to go with "one country, two systems" - which is exactly my argument, that Hong Kong is no longer the needed as a moneymaker. Either way, overall stock exchange volume is not a very standard measure of economic activity - at the very least you'd want to weight it per capita.

Of course China is motivated to have Hong Kong aligned with it rather than flirting with the West. Whether the West is "waking up to it" is not so clear to me. The HK riots were a big deal in the Western media for a while but now we've moved on.

[seanmcdirmid]

A lot of mainlanders still prefer to trade on the HK market because the inside trader rules are much more strict and actually enforced (for now?). If you trade on the Shanghai stock market, you need to learn how to follow in the wakes of whales, it isn't for the feint of heart.

[andi999]

I read somewhere when HK was handed back to China, it generated 25% of the whole GDP of china.