The rioting and violence in the streets of Hong Kong may soon be coming to an end, if recent progress is any indication.
Hong Kong official Carrie Lam stated that the bill proposing that Hong Kong residents be extradited to mainland China has been rescinded, a major step in ending the protests, according to CNBC.
For months now, the streets of Hong Kong have been filled with protestors. The citizens have set several stipulations that must be met for the protests to cease, and rescinding the extradition bill has always been among them.
Lam also made a statement on Wednesday addressing each of the other demands, but suggested that all of the grievances may not be addressed to the protestors’ liking at this time.
On the withdrawal of the bill, Lam stated, “The government will formally withdraw the bill in order to fully allay public concerns. The Secretary for Security will move a motion according to the Rules of Procedure when the Legislative Council resumes.”
The fact that the government is giving in on this demand is a huge step forward for the people of Hong Kong and China in general.
Clearly, the government wants to end the violence in the streets and allow things to return to normalcy as soon as possible.
The Market Reacts
As news broke of the agreement, the Hang Seng Index rallied by about four percent. Investors are clearly encouraged by this move, even though the Chinese remain stuck in a trade war with the United States.
However, even that situation may be coming to a conclusion sooner rather than later.
Though the United States plans on moving forward with its previously announced tariffs, the Chinese government indicated earlier this week that it would not be hitting the United States with additional tariffs as had been originally planned.
Of course, that could change in a heartbeat, but it is an encouraging sign that the Chinese seem to be more willing to come to the bargaining table to end this crisis rather than allowing it to drag on.
Many economic experts conceded that this trade war could cause problems for the American economy, but the outlook for the Chinese is far gloomier if this “war” is allowed to go on for an extended period of time.