Hong Kong Situation Update from Teneo, 9 October

Source: Teneo Com

Information reveived via InvestHK from Teneo, the Global CEO Advisory Firm

Overview – Wednesday, 9 October:
·         HK returns to apparent calm, despite jailed activist’s appeal in courts
·         Former HK governor blasted by China over anti-mask remarks, and US sanctions Chinese companies on Xinjiang
·         Sponsors continue to pull back from NBA in China, while business leaders manage positions on HK
 
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HK Protests & Related Developments
 
The city saw a drop in protest gatherings today, while the MTR continues to restore service to all stations. The transit operator limited service to 8pm for a second day. Few events also appear to be planned as of this writing for Taiwan’s ‘China National Day’ tomorrow. (link)(link)
 
Hundreds of demonstrators turned up outside the Admiralty High Court building today in support of localist Edward Leung, who is known for the slogan “Retake Hong Kong, Revolution of Our Times”. Leung is appealing against his current prison term over rioting charges from the 2016 Mong Kok protests. The judge will hand down a decision at an undetermined date (link).
 
A group of 200 firefighters and paramedics have issued a statement condemning institutional support for the HK police. The group criticises police for disrupting medical rescue during protests. (linklink)

The HK Squash Open announced it has delayed its planned event in December due to the ongoing protests, and will postpone until early next year. (link)

Regional & Global Political Affairs
 
China “strongly condemn(ed)” remarks on the anti-mask law by Chris Patten, the city’s last British governor, asserting his views were “full of hypocrisy, bigotry and ruthlessness” (link). Patten recently described the ban as “absolutely madness” on Sky TV. (link)

The US announced on Tuesday it will enforce visa restrictions on Chinese officials “complicit in” the abuse of “Muslim minority groups” in Xinjiang, China. (link) This follows the Department of Commerce’s decision to restrict exports by 28 Chinese organisations involved in the “brutal suppression” of Uighur “minorities”. (link)

Former US Secretary of State Hillary Clinton also tweeted for Americans to “voice support for the Hong Kong people” (link).

Business & Industry Developments

Chinese firms Tencent, Vivo, Alibaba, Luckin Coffee, celebrities,  as well as Japan’s Nissan have all made moves in the past day to distance or cut ties with the NBA, following Commissioner Silver’s remarks defending the Houston Rockets GM’s right to free speech. (link, link)

Blackstone CEO Schwarzman spoke on HK at the Washington Post CEO Series, suggesting that the ongoing protests and ‘internal issues’ has made trade negotiations more complicated. (link)
 
After Blizzard banned well-known gamer Ng Wai-chung from the Hearthstone Grandmasters tournament for political statements on HK, Ng said he has no regrets and ‘will not succumb to white terror’. (link)Former Blizzard team lead Mark Kern tweeted in support of Ng, stating that “until Blizzard reverses their decision I am giving up playing Classic WoW, which I helped make and helped convince the firm to relaunch.” (link)

Ronnie Chan, Chairman of Hang Lung Properties, spoke in a 22-minute video interview with mainland China media platform Guancha Syndicate, stating that the Chief Executive is a political leadership role, and suggested that it is “ridiculous” to have a civil servant in charge of HK, versus a leader with a business background. (linklink)
 
Additional Articles & Themes of Interest
 
Bloomberg Opinion: Trump’s China Trade War Enters Classic ‘NBA’ Phase
Summary: Far from being easy to win, President Donald Trump’s trade war with China just keeps getting more complicated. And now basketball is involved somehow?
 
The New York Times: China Is a Minefield, and Foreign Firms Keep Hitting New Tripwires
Summary: For international companies looking to do business in China, the were once simple. Don’t talk about the 3 T’s: Tibet, Taiwan and Tiananmen Square crackdown. Now, multinational companies are increasingly struggling with one question: how to be apolitical in an increasingly politicized and punitive China.
 
Vox: One of America’s biggest gaming companies is acting as China’s censor
Summary: It isn’t merely adjusting a cosmetic part of the product to fit a particular market. Blizzard is throwing its lot in with an authoritarian state, acting as an international agent of its repressive apparatus in opposition to fundamental human rights.
 
Potential Significant Protests

*NOTE: The below includes an overview of potential upcoming events, many of which are subject to change as developments unfold. This is provided only as an FYI of potential impact on travel or logistics arrangements in Hong Kong.

Date & Time

Event & Potential Size

Location &
Affected Areas

Additional Details

Daily Wear a Mask Day ·         Hong Kong ·         Encouraging HK citizens to wear a mask under the anti-mask law
Thursday, 10 October Double Tenth Day Activity ·         Hong Kong ·         Calling for hanging flags of Taiwan across Hong Kong on the Double Tenth Day
Thursday, 10 October World Sight Day rally – Stand will the female shot in the eye on 11 August ·         Bus stop outside Tsim Sha Tsui Police Station ·         Rally for the girl who lost her eye on 11 August
Saturday, 12 October
8:00-9:00pm
Human Bitmap ·         New Town Plaza, Sha Tin  
Sunday, 13 October
7:00-11:00pm
“Thank you World and Help” rally ·         Victoria Park, Causeway Bay
·         Edinburgh Square, Central
·         Express gratitude to countries participated in the global rally on 29 September
Monday, 14 October
7:00-9:30pm
Thank you medics/Medical practitioners rally ·         Edinburgh Square or Chater Garden, Central  
Sunday, 20 October
8:00-11:00pm
Human Chain in Sha Tin ·         Sha Tin  
Monday, 21 October
7:00-11:00pm
Sit-in Yuen Long Station ·         Yuen Long Station ·         Three months from the attack at Yuen Long Station on 21 July
Saturday, 26 October
1:00pm
Anti-white terror; anti-totalitarianism
rally
·         Tamar Park, Admiralty ·         Stand with the sacked employees because of political stance
Thursday, 31 October
7:00-11:00pm
Never forget 31 August, give us the truth ·         Prince Edward Station  
Sunday, 27 October to Saturday, 30 November “Umbrella Movement” 5th Anniversary Exhibition ·         June 4th Museum, Mong Kok ·         Seminars, screenings, sharing and various activities will be held during the exhibition period.
·         Organized by Hong Kong Alliance in Support of Patriotic Democratic Movements of China

Potential Additional Protests

Date & Time

Event & Location

Location &
Potential Size

Additional Details

Every Monday Secondary School Student Strike ·         Students ·         Rallies and strikes at schools

 
Injunctions

Date of Grant

Plaintiff

Effective Date

Injunction Orders

Friday, 23 Aug 2019 Airport Authority This Order will remain in force until trial or further order Link to the injunction order
Friday, 23 Aug 2019 MTR Corporation Limited This Order will remain in force indefinitely unless it is varied or discharged by a further Order of the Court Link to the injunction order

HK Travel Advisories – October
 

Location

Updated

Key Advisory Notes

Hong Kong Airport

Still current ·         Until further notice, only bona fide passengers with a valid air ticket or boarding pass for a flight in the next 24 hours and a valid travel document will be allowed to enter the terminal buildings.
·         Passengers should arrive at least three hours before departure to allow sufficient time to pass through newly added control points.
·         Other members of the public, including those who may want to accompany departure passengers or receiving arrival passengers at the airport, should not travel to the airport unless absolutely necessary.

Singapore Foreign Ministry

Updated: 4 October ·         Large-scale protests have been taking place across Hong Kong since June 2019 which have become increasingly unpredictable.
·         These protests can take place with little or no notice and could turn violent. Road closures and traffic disruptions in the aforementioned areas are expected.
·         Singaporeans are advised to defer non-essential travel to Hong Kong, given current developments. If you are already in Hong Kong, you should take all necessary precautions to ensure your personal safety. You are advised to stay vigilant, monitor developments through the local news, and heed the instructions of the local authorities.
·         You should avoid protests and large public gatherings, and stay in touch with your family and friends so that they know you are safe.

Ireland Foreign Ministry

Updated: 4 October

Still current

·         High degree of caution
·         The violence intensified around the celebration of the 70th anniversary of the founding of the People’s Republic of China on 1 October and further demonstrations are likely to take place in the coming days and weeks.
·         Such demonstrations can close off large sections of the city and affect public transport. While Causeway Bay and Admiralty and surrounding districts have been the focal point of demonstrations, protests have occurred in many other areas of Hong Kong.
·         Urge people to be extra vigilant and are strongly advised to avoid areas where protests and unplanned public gatherings are taking place and to follow the advice of the local authorities.

Australia Foreign Ministry

Updated: 4 October

Still current

·         Exercise a high degree of caution.
·         Protests continue and are less predictable. There is an ongoing risk of violent confrontation. Protests may cause traffic disruptions and affect transport services, including to and from the international airport.
·         ‘Flash mob’ demonstrations can take place with little or no warning, clashes between opposing groups and individuals have become less predictable and are expected to continue.

U. K Foreign Ministry

Updated: 7 October

Still current

·         While a number of peaceful activities have taken place, many other protests have led to clashes between police and protesters involving significant violence.
·         Some Mass Transit Railway (MTR) metro stations have been closed – including in major tourist areas – due to damage caused by the protests. You should follow the MTR website for the latest updates before commencing your journey.
·         The situation around protests and public gatherings can change quickly, with the potential for violence, especially during unauthorised protests.
·         Protests can deviate from planned routes or rally locations and spill over into nearby public spaces, such as shopping centres, housing estates and public transport hubs.

Canada Foreign Ministry

Updated: 2 October

Still current

·         High degree of caution due to ongoing large-scale demonstrations.
·         Although many protest sites are made public in advance, authorised and unauthorized demonstrations can take place with little or no notice. They can quickly spread to surrounding areas, including those frequented by tourists

Upcoming Key Events

Date Event & Location Relevant Attendees Potential Developments
Tuesday,
Weekly
HK Executive Council Meeting ·         Chief Executive Lam and all senior administrative officials ·         Chief Executive has held occasional press conferences prior to private ExCo meetings
·         Has been a primary government channel on the protests to date
Friday, 4 – Thursday, 17 October Nomination period for District Council   ·         The nomination period will occur in an ordinary fashion
·         District Council elections have been speculated to be delayed
Thursday, October 10 Double Tenth Day   ·         Official statements made may comment on Hong Kong
·         Protesters in Hong Kong will likely draw attention to Taiwan.
Thursday, 10 October US-China “high-level” trade talks ·         Senior Chinese and US Officials ·         High-level negotiations following initial discussions in Mid-September
Friday, 11 – Sunday, 13 October   China and India Head of State meeting ·         President Xi Jinping
·         Prime Minister Narendra Modi
·         President Xi will visit India
·         A joint statement may be issued, unlikely to comment on current unrest
Wednesday, 16 October HK Legislative Council in Session ·         Legco members
·         Senior government officials
·         Legco year of 2019-2020 starts after damages at the Legco buildings
·         New motions and queries will be heard at general and committee meetings, along with items continued for debate from last Legco year
TBC
October
Chief Executive Policy Address ·         Chief Executive Lam ·         Previously held 10 October, not fixed and can move to later. CY Leung made addresses in January
Sunday, 24 November HK District Council Elections ·         Local political parties and groups ·         Pending announcement of the nomination period
·         Young individuals with no political affiliation are seen setting up Facebook pages to promote visions
·         Election Affairs Commission
Saturday, 11 January Taiwan General Election ·         Presidential and local elections ·         HK and ‘One Country, Two Systems’, may become the defining issue of the election, alongside economy

****

Taylor Brown
Senior Associate

Teneo
13/F, Wyndham Place,
40-44 Wyndham Street
Central,
Hong Kong
O: +852 3655 0521
M: +852 5244 9875

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