For China, this is a master plan to incorporate Hong Kong into the greater bay area.
You may have heard of red capital. A lot of businesses and financial companies are now under Chinese capital. China heavily relies on Hong Kong, and that is why Hong Kong matters. Over 73% of IPOs that are raising money, especially in the U.S., need Hong Kong. I think the Communist Party thinks they can have full control of Hong Kong and use Hong Kong as the financial centre for China to raise money, but then they forget the Hong Kong Policy Act is due now—