And secondly, "the deep rooted problems" in HK are obviously freedom of speech, hostile foreign forces and an education system that doesn't indoctrinate students with pro CCP thoughts.
There are all kinds of comments which I could make here - both about the rating agency and the HKSAR Govt – but I'll settle for two:
1. the market either didn't care or had already priced in the down grade: overnight HIBOR dropped below 2% today and the 1 month rate shed a few points as well (I didn't check the longer term ones)
2. I couldn't find anything that suggested this put any pressure on the HKD/USD peg at all (but I'm sure Kyle Bass will be along soon talking about canaries in coal mines)
So I have to ask, how does this affect me? Right now my answer is "not at all" but if it starts looking like a trend, that's something else entirely.
Here's a report by Reuters (Beijing) of 16 Dec 2019:
BEIJING (Reuters) - China’s Premier Li Keqiang says the Hong Kong government must speed up research and resolution of deep-rooted economic problems, according to state radio.
Li made the comments at a meeting with Hong Kong leader Carrie Lam as part of her visit to Beijing on Monday. She also met with Chinese President Xi Jinping.Reporting by Huizhong Wu and Lusha Zhang;Editing by Catherine Evans
I think a further downgrade might be warranted as a possible epidemic every decade seems likely now.