This is a reasonably accurate picture of sentiment toward the protests in HK. The one caveat to add is that sentiment toward the protests in Hong Kong is very dependent on income levels, business interests and age. Among most of my friends, who are professionals, gainfully employed or themselves successful business owners, there was a sense of horror and bewilderment at the violent turn that protests took beginning around June 2019 with the trashing of the Legislative Council chambers, and later the burning and destruction of mainland Chinese bank branches and businesses with mainland Chinese ties, including Starbucks, a popular sushi chain and a chain of snack shops. I shared their shock at seeing the long peaceful Hong Kong I have lived in for decades descend into chaos.

At the same time, some of my staff and other middle-income people I knew tended to believe protesters were pushed toward extreme violence by the excesses of the police and the implacability of the government. As in the US, different perceptions of reality were reinforced by social media bubbles that filtered out opposing views and solidified existing biases.

Today, the same people who were horrified by the direction in which the protests ultimately went are relieved at the fact that they have largely stopped, and willing to accept the existence of red lines defining the limits of free speech and protest activities as a fair price to pay for social stability. Others who once sympathized with the protesters or took part in protests are not supportive, but most are resigned to the fact that the NSL is a fait accompli. Some are looking at their options, such as emigration. Most will probably make peace with the new reality and stay.

The concern that remains for the financial sector is that the red lines are more like gray zones of ambiguity. The questions regarding short-selling and publishing of financial or economic research critical of China and its interests remain and it will take time to see how any such cases play out in the enforcement or non-enforcement of the NSL.

Another urgent question for the financial sector is how financial institutions comply simultaneously with US sanctions against Chinese officials or others and the NSL, under which enforcement of foreign sanctions against China is illegal. Closing the account of a US-sanctioned Chinese official might be necessary to avoid being shut out of the USD clearing system. But it could lead to equally dire consequences under the NSL.