The signs that the civil unrest in Hong Kong will only get worse before it gets better have been appearing in the last few weeks. Previously, the Hong Kong SFC signaled it will increase compensation limits for investors trading in securities, presumably in order to avoid any negative financial fallout if the securities markets react sharply negative to what has been unfolding in the autonomous region.
Now it is becoming clear that financial service providers, including FX brokers are taking measures to protect their customers from adverse price movements. Specifically, Oanda Japan has announced they will be raising minimum margin requirements for HKD denominated pairs.
Furthermore, other brokers have had to shut their offices temporarily, as Finance Feeds has reported that Standard Chartered HK has notified its customers that “Please kindly be advised that all of our branches will be closed at 3:30 pm, 18 November 2019”.
Ultimately, the situation on the ground will further dictate what happens with Hong Kong’s financial markets and firms operating there, but investors should be cautious in trading or investing in associated products because of the unknown effects the situation may bring.