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Hong Kong stocks dive on China’s plans for security law

Hudson Lockett, Nicolle Liu and Joe Leahy in Hong Kong

Hong Kong’s stock market tumbled after the Chinese government said it planned to impose a national security law on the city in a move that blindsided traders and prompted concerns over the Asian financial hub’s future. The Hang Seng closed 5.6 per cent lower on Friday, marking the index’s worst one-day performance in nearly five years, on investor concerns that Beijing’s show of legal force could reignite mass protests in Hong Kong and further worsen relations between the US and China. The jolt to the market came hours ahead of the opening of the National People’s Congress, China’s annual rubber stamp meeting of lawmakers, on Friday.