China’s trading crackdown seen boosting Hong Kong as official capital hub

China’s crackdown on cross-border securities trading could strengthen – rather than diminish – Hong Kong’s financial role, according to economists, as Beijing steers more capital through official channels and reinforces the city’s status as an offshore yuan hub.

“I would argue that these moves make the importance of Hong Kong even bigger,” Diana Choyleva, founder and chief economist at Enodo Economics, said on Tuesday at the World Economic Forum’s annual “Summer Davos” meeting.

Referring to...