Hong Kong Leader Says Middle East Conflict to Spur Capital Flows

Hong Kong leader John Lee said conflict in the Middle East could fuel capital flows to the Asian financial hub, as investors put their focus on diversification and security.

The Iran war has rattled markets worldwide, sending oil above $100 per barrel, spurring a rush to the dollar and fueling worries about stagflation. Although he acknowledged the short-term shocks, Lee said that a longer-run impact would be to highlight the stability of Hong Kong, one of the world’s major financial centers.