Remember Nancy Pelosi's "a beautiful sight to behold" comment about the Hong Kong riots back in 2019? Well, it seems the chickens have come home to roost. The US is now giving us a masterclass in how to handle riots, and let's just say, it's a far cry from the "hands-off" approach they expected from Hong Kong.
From "Beautiful Sight" to Harsh Reality
The hypocrisy is astounding. Two days after riots broke out in Los Angeles, the US National Guard was immediately deployed to the streets of Los Angeles to suppress the unrest. Now, Trump demonstrates to the world how to use the toughest measures to quell riots.
ICE Storms LA: Raids and Reactions
It all kicked off on June 6th, when the US Immigration and Customs Enforcement (ICE), together with the Department of Homeland Security (DHS), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA), launched an unprecedented anti-immigration enforcement operation in Los Angeles. The operation covered downtown Los Angeles and several surrounding areas.
The enforcement was far more forceful than expected. Fully armed federal agents stormed workplaces with unmarked military vehicles, arresting at least 44 suspected illegal immigrants.
That sparked outrage. In the afternoon of June 6, hundreds of protesters gathered outside the Edward Roybal Federal Building in downtown Los Angeles, demanding ICE release the detainees. Things quickly escalated as the number of protesters swelled to over a thousand. Protesters blocked the federal building’s entrances and exits, shouting slogans such as "Free them, let them stay," spray-painted numerous anti-ICE slogans on ICE vehicles, and some began throwing incendiary devices at police vehicle wheels and even chased ICE convoys.
By June 7, the conflict escalated further. In Paramount, southern Los Angeles, law enforcement and protesters faced off tensely. Protesters threw debris at officers, who responded with tear gas, pepper spray, and rubber bullets to disperse the crowd. That evening, the Los Angeles Police Department declared the gathering an unlawful assembly and issued a dispersal order, but the protesters did not retreat and engaged in fierce confrontations with police.
Trump's Heavy Hand: National Guard and the Insurrection Act
Trump, never one to shy away from a strongarm tactic, authorized the deployment of 2,000 National Guard members in Los Angeles and even threatened to mobilize active-duty Marines. He dusted off the Insurrection Act of 1807, a law usually reserved for insurrections or serious obstruction of law enforcement. Historically, this law was used by President Eisenhower in 1957 in Arkansas to enforce school desegregation policies.
White House Deputy Chief of Staff Stephen Miller, ever the firebrand, labeled the LA protests as "violent insurrection," justifying Trump's move. Secretary of Defense Pete Hegseth chimed in, calling the protests a "significant national security risk". If violence continued, active-duty Marines would be mobilized, and they were on "high alert."
Political Calculations and Double Standards
Trump's aggressive actions in California are seen as a calculated political move. By targeting a Democratic stronghold, he puts Governor Gavin Newsom and Mayor Karen Bass in a tough spot . They have to quell the riots while facing immense pressure from the Trump administration.
In 2019, Hong Kong saw far worse violence, with students making petrol bombs and turning streets into infernos. Yet, Hong Kong remained restrained. The People's Liberation Army was not deployed. The US, on the other hand, is quick to deploy troops on its own soil .
It's a classic case of "do as I say, not as I do." The US sanctioned many mainland and Hong Kong officials over Hong Kong’s enactment of the National Security Law and the so-called suppression of 2019 riots. Now, when the US faces riots, it deploys troops within two days. Trump’s approach continues to astonish people every day.
And where are those Hong Kong exiles in the United States now? Surely they should be out there supporting the protesters in California, right?
Lo Wing-hung
Bastille Commentary
** The blog article is the sole responsibility of the author and does not represent the position of our company. **
At the arrival of 2026, the happiest thing is to see the "Hong Kong is dead" narrative—proclaimed so loudly by Western voices—die yet again.
Foreign Money Returns Home
The West has written Hong Kong's obituary more times than you can count. They believed the city's return to China should have been its death sentence. American magazine Fortune declared "The Death of Hong Kong" on its 1995 cover—two years before the handover even happened. Hong Kong survived the Asian financial turmoil in the early post-handover years. It survived SARS. Then came 2019's Black Riots, followed by US sanctions on Hong Kong officials in 2020 and the pandemic's hammer blow. Foreign capital fled in an American-orchestrated exodus, with much of it landing in Singapore.
Last February, Stephen Roach—Yale University senior fellow—wrote in the UK's Financial Times with a headline that said it all: "It pains me to say Hong Kong is over." Foreign investors don't just track economic growth when they assess Hong Kong. They watch the stock market. And over the past year, Hong Kong's miraculous stock market comeback has bankrupted the "Hong Kong is dead" theory.
Hong Kong's economy grew an estimated 3.2% in 2025—ranking it among the developed world's top performers. But the stock market performance was getting really interesting. Average daily turnover in the first 11 months hit HK$230.7 billion—a massive 43% jump compared to 2024's same period.
Record-Breaking Fundraising Wins
The Hong Kong Stock Exchange crushed it in 2025. A total of 119 new listings raised HK$285.8 billion—a staggering 220% year-on-year increase and the highest since 2021. According to KPMG's report, HKEX ranked first globally in fundraising. The New York Stock Exchange and Nasdaq tied for second place. Looking ahead, HKEX's fundraising is estimated to reach HK$300-350 billion in 2026, keeping it among the world's top exchanges.
Sure, Mainland capital is investing in Hong Kong. But foreign capital's return has been the real game-changer behind the stock market's strong performance. According to fund industry insiders, what we're seeing now is only wave one—primarily hedge funds and other medium-to-short-term players. As Hong Kong's trading volumes swell and quality Mainland companies list here, the long-term foreign funds will gradually return. The outlook for Hong Kong stocks continues to look favorable.
America's narrative said Hong Kong's National Security Law would scare capital away. Reality proved exactly the opposite. Hong Kong's stable environment gave Chinese companies the confidence to list here. America's targeting of Chinese concept stocks listed on its exchanges was self-destruction—forcing quality Chinese companies to turn to Hong Kong for listing instead. This made Hong Kong's stock market bigger and stronger, compelling even bearish foreign capital to come back.
Beijing's Seal of Approval
President Xi's remarks when meeting Chief Executive John Lee during his duty visit to Beijing in mid-December reveal what work the central government values in Hong Kong. President Xi opened with praise for the Chief Executive's courage and initiative in leading the SAR government. He highlighted four key achievements: steadfast maintenance of national security, successful Legislative Council elections, proactive integration into national development, and achieving steady economic growth.
President Xi's assessment underscores Beijing's high recognition of Hong Kong's ability to do both—safeguard national security and develop the economy simultaneously. Some Hong Kong people believed that having transitioned "from chaos to governance and then to prosperity," the city should set aside national security to focus on economic development. Reality proved this view wrong. Hong Kong must strike a balance between these seemingly contradictory goals and advance on both fronts at once.
Look at Hong Kong's development over the past five years. The city emerged from Black Riots and the pandemic in 2021, achieving a strong rebound from the bottom in 2023. The return to normalcy brought revenge spending that temporarily elevated market sentiment.
But entering 2024, local consumption patterns underwent structural changes. Hong Kong people shopping across the border diverted local retail spending. The strong Hong Kong dollar—tracking the US dollar—and high interest rates suppressed economic activity, leading to structural adjustment.
By the second half of 2025, Hong Kong entered a phase of moderate recovery. The property market began stabilizing after its decline. With the US starting rate cuts in September, capital supply loosened. Hong Kong can continue along this recovery path in 2026—that's the estimate anyway.
Despite the optimism, Hong Kong people must keep working hard. The many vacant shops you see on the streets tell the story—retail economy pressure remains real. In 2024, Hong Kong's total retail sales value of HK$376.8 billion represented a 7.3% year-on-year decline. That's painful for the retail sector.
Retail's Reversal Ahead
Through October 2025, retail sales values remained comparable to the previous year. But consumption began recovering in the second half—retail sales value rose 3.8% in August, 6% in September, and 6.9% in October. 2025 showed an early decline followed by growth, with accelerating consumption momentum. Retail consumption is expected to reverse its decline in 2026.
During this retail transformation, we Hong Kong people must continue their efforts. Old businesses will still be eliminated—that's inevitable. Strategic adjustments are required. New opportunities must be pursued.
Bottom line: Hong Kong's economic performance in 2025 proves once again that the "Hong Kong is dead" theory dies—one more time. Hong Kong has weathered different shocks repeatedly in the past, emerging reborn each time like a phoenix from the ashes.
Lo Wing Hung
