Donald Rumsfeld’s words come to mind when I read reports of the very serious events in Hong Kong. We know what is happening. We know the Chinese are moving towards dealing with it. What we don’t know is how, or when.
One might guess it will be sooner rather than later. As Hong Kong is a very significant actor in the Asia Pacific stock market, that ought to worry us.
One would hope that a heavy handed reaction to clamp down on the rioting, which is more likely than not, would not directly impact on business activity in the region. But another unknown is how the rest of the world would react.
With China being the main driver of global growth and the US already in some ways being at war with China, this is a black cloud we need to keep an eye on.
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