law that would allow extraditions to mainland china they worried about the kind of influence beijing will have on hong kong the erosion of guarantees given by beijing concerning independent judiciary and individual freedoms could undermine investor confidence and threaten hong kong's place as a middle ground between china and the business world. look at some of the us is in a moment but 1st a quick refresher over the special status of kong one of the world's most important financial centers and busiest ports it's an enclave within china and has a special rights that diverged from chinese communist doctrine in $1898.00 britain up to him to 99 year lease on the territory from the chinese and that lease expired in 1970 britain transferred the colony back to china they didn't promise to uphold western style civil liberties in hong kong though it didn't free speech on the freedom of the press the territory was to remain a separate customs entity and operated under

a free trade regime so it could retain the status of an international banking center so on call became an important gateway to china for western multinationals but following the recent unrest over the extradition law international corporations with offices in hong kong fear that china is going back on the $184.00 agreement and that rule of law one of the cornerstones of any market economy will be eroded. to discuss that i have with me in the studio resident china expert clifford conan and from singapore we are joined by andreea haying our. financial correspondent where we start with you. what are you hearing there are bankers really clearing their desks and packing their bags. well the picture is showing signs of cracking although their banks are not pegged just yet so in this is moving their money out of auto hong kong you know is going to be giving

banks something to worry about because it's home to it one trillion dollar wealth management industry now as a 2018 hole call is home to many billionaires is the 2nd highest number of billionaires in the will 2nd only to new york and that includes 3 billionaires in $200000.00 millionaires now these tycoons and super tycoons are going to have been worried about hong kong about moving their money out of hong kong since the 2014 umbrello movement so this particular rally could be the big push that they're making because they're starting to see the real this also the encroachments that china has on hong kong so lots of cache of humility that as we hear how important it is hong kong for china what it's extremely important i think hong kong's openness and its freedom is something that china needs its own capital markets are still heavily restricted we've seen since 2012 the chinese companies

have raised 156000000000 from i.p.o.'s in hong kong where they've raised 143000000000 in their own mainland exchanges so it's really very important to them all of this of course takes on a different character as well with the u.s. china trade conflict at the moment china is being squeezed and it needs what hong kong has to offer in terms of international exposure more than ever and. that squeeze on home calm of the moment that we are kind of feeling of our other financial centers in asia are benefiting from this singapore for example where you are. well you know i mentioned again has that you know the issue 7 with the extradition lock was a threat to china's democracy but it also symptomatic threats all of that is you is singapore as a top financial center rival it stands to gain a lot from these runaway billionaires inside singapore already has overtaken hong

kong with the number of investments being me particularly in cross border investment in commercial property the numbers i'm reading here they have spent singapore has spent $21800000000.00 u.s. dollars in this quarter a loan and that's a 7 to 23 percent jump from last year. compared to last year and that's already overtaking hong kong that's been going on for quite some time but at this say we should not be quick to jump the gun singapore may not necessarily get a whole piece of the pie is investors in hong kong choose not to remain in asia and half their money moved to outside asia they're already starting to invest in the us and already i europe is europe is at the top of that list. clip that you've just explained how important is for china is that the real danger of beijing sort of really tightening controls what they gain from that but i remember in 2017 she jim

being visited to mark the anniversary of the handover and he said that hong kong would have its freedoms but there was a red line across it which it should never cross and there was a sense then that beijing was trying to impose control but now i think with the trade war i think it's very difficult position for beijing because as we said it really needs hong kong and it needs its openness and its freedoms socom squeezed too hard because if hong kong if everyone does move to zurich as you just heard or to singapore if the money starts going there it's a big problem for hong kong so i think i think i think we're going to see a slow reaction to this i don't think we're going to see anything happening especially quickly. thank you very much and you hang in singapore thank you. germany's economics minister peter is in china today to conduct high level talks with kenya officials he reiterated calls for china to open its markets and create

a level playing field for foreign companies while underscoring in the 4 multinationals china for its part has long pursued acquisitions in europe its own a particular taste for so-called hidden champion small and relatively unknown companies that are very successful and very often leaders in the market. ready on is a material commonly found in high performance tires one of its key properties is that it's highly resistant to heat and stress for danka based in southern germany has been producing way on for decades works council member of peta menke it classes the firm as a so-called hidden champion of german industry the company has a global market share of over 50 percent not swallow but i've met her nearly all major tire makers use our product it's used especially in high speed tires where there's a big emphasis on safety and choices but don't schools machine your last year quit

denko was acquired by chinese private equity firm beautiful mind capital or b m c we reached out to both b m c and cord tankas german management board for an interview both turned us down b m c's europe fund has its headquarters in shanghai and london the geolocation was billed as a reflection of close sino u.k. cooperation in the financial sector and came as british prime minister to resign may was seeking out new partnerships in preparation for a future outside the e.u. . germany's battles month foundation has been studying chinese acquisitions of german companies the purchase of court danka appears to be a textbook case. so i. kind it is pursuing a political strategy called china 2025 which has the aim of turning the country into a leading industrial nation purchasing high tech companies from abroad is a clearly stated part of that strategy b m c is backed by shanghai international

group multi-billion euro chinese state owned sovereign wealth fund germany's p.d.i. business lobby group is sending the alarm. this was on the side chinese companies should not be able to use state subsidies and government loans to acquire companies here as an above market value that's meaning european competitors lose out or force the mc purchase core tanker for 240000000 euros in return employee representatives are counting on battery market access in china and the guarantee that jobs will stay in germany. we haven't yet had any contact with them but i can say though is that we continue to have contact where old management the same people are still there there be no present all changes. but the sheer speed of chinese by ups has left many on edge late last year the e.u.

proposed a new law to scrutinize foreign investments more closely china wasn't named but analysts say the focus was firmly on beijing. plans by facebook to introduce its own virtual currency are facing immediate and strong backlash and it's not just anyone voicing concerns the g 7 that's the group of the 7 leading economies in the world have given the plans a thumbs down the french finance minister. insists that only governments can issue sovereign currencies a high level g 7 working group will be set up to examine the risks of crypto currency is to the global financial system facebook unveiled its mushroom its currency called libra on tuesday and said it would work with partners such as these are master card and pay pal. could this be the governor of the world's next central bank when libor becomes usable across facebook's apps including instagram and whatsapp possibly as soon as next year it could well become

a rifle for traditional currencies mark zuckerberg is promising money for the modern world i believe that it should be as easy to send money to someone as it is to send a photo. so we're already testing this in india with about a 1000000 people it's been used a lot in the feedback so far is great and were already working on rolling this out in a number of other countries later this year but the feedback from key financial figures in europe hasn't been so great french finance minister bruno lemaire says it's out of the question that libor should become a sovereign currency the governor of the bank of england mark carney has said it will need to be subject to the highest standards of regulation security is one of the biggest concerns what with facebook's record on protecting data analysts point out it's not the most obvious organization to trust with your money facebook has to convince us that not only should we not worry about privacy concerns when we share stories or we browse the internet through the social networking but financial

transactions are now safe as well that's a big that's a very tall order. this rather humble looking office block in switzerland is the official registered home of libra facebook has promised to keep its house in order and avoid the volatility of other cryptocurrency by pegging libra to realize sets and a number of government backed currencies they'll need to convince users and financial leaders around the world the lever is backed by more than just luck. and that's it for me and the business seems thanks for watching stay tuned news is next right after this break look at global markets.

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move. played . this is news live from berlin a staggering new figure from the un's refugee agency the number of displaced people has reached a record high of over 78000000 the u.n. high commissioner for refugees day warns us how not to deal with the challenge. and the. restrictionists closures pushbacks are not only wrong let's remember that these people are fleeing from war conflict.