FTSE-100 and HSBC plunge after China eyes new national-security laws for Hong Kong

The FTSE-100 Index plunged more than 100 points today after China said it would impose new national-security laws on Hong Kong.

Shares on the internationally-focused blue chip index fell 110 points to 5905.25 as China's move raised fears of more pro-democracy protests that engulfed the Asian city last year and the new national security law plans hit Hong Kong's Hang Seng index this morning.

HSBC's shares were the biggest fallers today. It fell 4% amid fears for the impact on its huge Hong Kong business.

Wider implications may include a Donald Trump backlash against the Chinese move, hurting trade relations.

CMC markets analyst David Madden said: "A balance needs to be struck to achieve a slight return to normality in terms of business, but without sparking a big increase in the infection rate."

US shares fell last night, he said, although without overly erratic moves.

Grim figures on both retail sales in the UK and the poor shape of the public finances weighed on UK sentiment despite a 2% jump in shares of Burberry following its full year figures that were grim, including a cut to the dividend, but included a glimmer of hope. Sales prior to the covid outbreak had been strong, with a good reception to its new ranges. That triggered hopes a bounceback could be strong when lockdowns end.