Hong Kong Chief Executive Carrie Lam will formally withdraw a controversial extradition bill, which has been at the center of massive demonstrations this summer and is one of protesters’ five demands, multiple local media reported on Wednesday.
The South China Morning Post said that Lam will meet with pro-establishment allies on Wednesday afternoon at her official residence. Citing sources, the SCMP said that all 43 pro-establishment lawmakers on Tuesday night had been invited to meet with Lam.
Formal withdrawal of the legislation is one of five demands made by protesters. The others are Lam’s resignation and introduction of universal suffrage, rescinding the characterization of protesters as rioters, unconditional release of arrested demonstrators, and creation of an independent commission to investigate complaints of excessive use of force by the police.
While acceding to one demand would be viewed as an olive branch by Lam, protesters have said that they would not settle for anything less than the agreement of all five.
Michael Tien Puk-sun, a pro-Beijing lawmaker in Hong Kong’s Legislative Council, told reporters on Wednesday that the withdrawal of the bill would not be enough and “comes too late” to resolve the monthslong standoff.
Tien called on the government to immediately proceed with an independent inquiry commission to investigate allegations of excessive police force against protesters.
Public broadcaster RTHK reported that pro-government lawmakers were called for talks with Lam at 4 p.m., Hong Kong time, on Wednesday, and would be joined by members of the National People’s Congress, the Chinese People’s Political Consultative Conference, and Hong Kong’s Executive Council.
Stocks in Hong Kong soared after the reports and the Hong Kong dollar strengthened.
The benchmark Hang Seng Index jumped more than 3%, with shares of local retailers and shopping mall operators up nearly 10%. Ivan Li, director of the investment research department at CSL Securities, said the news was driving the market gains. But he cautioned that it was still too early to buy into the market. The index slumped 7.4% in August, as the ongoing protests and the U.S.-China trade war weighed on the market.
The Hong Kong dollar, which is pegged within a narrow range to the U.S. dollar, edged 0.04% higher. Elsa Lignos, global head of foreign exchange strategy for RBC Capital Markets, attributed the currency’s strengthening to the reports, but added: “It feels optimistic to assume it will end the protests.”
Protesters and police have clashed in often violent demonstrations, with police using rubber bullets, tear gas and pepper spray to disperse crowds.
Protests have become almost daily occurrences in Hong Kong since early June, with massive demonstrations drawing an estimated 2 million people to marches, according to organizers. Groups of lawyers, accountants, medical workers and aviation employees also have staged rallies.
Hong Kong’s airport, a major regional transport hub, was virtually shut down for several days last month after demonstrators occupied the main terminal, and airlines were forced to cancel hundreds of flights. Protests at or near the airport have continued, despite a court injunction prohibiting people from entering the terminal building.