Richard Harris, CEO of Port Shelter Investment Management, believes Hong Kong is — and will continue to be — one of the best global markets this year, adding that it acts almost like a warrant on China.

Hong Kong Island

Richard Harris, CEO of Port Shelter Investment Management, describes Hong Kong as one of the best-performing global markets this year, attributing its strength to its close relationship with China's economic recovery. He notes that Hong Kong benefits from technical factors such as a weaker U.S. dollar, increased liquidity, and attractive yields on key stocks, making it appealing to foreign investors.

Harris also discusses the broader trend of diversification away from the U.S., observing that while some companies are moving operations out of China, the country's dominant role in global manufacturing makes significant shifts unlikely in the near term. He expects only gradual changes in global supply chains, with Hong Kong remaining a bright spot for investors.

Hong Kong a bright spot amid diversification from U.S.: Expert

I want to cover Hong Kong because you're calling it one of the best markets this year. Quite interesting because of course it's really the support coming from China. Why do you think though that eight shares have outperformed so far. Eight shares eight shares. Excuse me. Well I think we're in a situation where you know Hong Kong acts almost like a warrant on China. China does better. Hong Kong does much better. China I think is on the road to recovery after the long slowdown during Covid. I think that's positive. It's being slow. The authorities are not trying to overcook things because they've done that in the past and there have been problems. And I think Hong Kong is doing quite well there. We've also got the technical factors with the peg in terms of the fact that slightly weaker U.S. dollar has meant that a number of other countries have decided for instance Taiwan. I think a lot of the insurance companies repatriating assets back into Taiwan dollars for the Taiwan dollar goes up. That then has a knock on effect to Hong Kong too because people are now starting to look at the Hong Kong dollar. There's a lot of liquidity in Hong Kong. Overnight rates have collapsed. So I think there are quite a few positives there in terms of Hong Kong in terms of the fact that it does look as if it's in a fairly bright area at the moment. So it's really the diversification diversification story that we started seeing right around the Rose Garden tariff announcement. So Hang Seng index up a 21 percent. How much further do you see much of an upside here. And do you think we're just getting started with the diversification or have we made some meaningful progress. Not just Hong Kong but the overall money moving at the moment. I don't I think markets don't go up in a straight line. So I think Hong Kong has done quite well recently. We've had a sluggish period. We do seem to be in a fairly sluggish period in the markets. But I think we have to remember that it underperformed for a very long time. Valuations are quite low. Some of the key stocks in Hong Kong are on tremendous yields and it looks now that probably those yields aren't going to be cut. So that's another inclination that people look at. In addition to that it's kind of a U.S. dollar base as well. So foreign investors like that too. So I think there are a whole bunch of reasons why it looks positive there in terms of diversification. I think we're not really. What's likely to happen is we are like to see more companies moving out of China as we've seen Apple moving into India. But China is such a huge component of manufacturing around the world. It's going to be very difficult for that to make much of a dent. OK there may be some political issues about that but it's unlikely to make much of a dent. And it looks as if it's going to be very difficult for the U.S. to develop its manufacturing strategy in the way that President Trump wants. So I think we're likely to see small movements gentle movements. Yes people are going to try and reduce their exposure to particularly critical areas. But I think you'll still be relatively muted.

Australia said on Wednesday (July 30) it will add YouTube to sites covered by its world-first ban on social media for teenagers, reversing an earlier decision to exempt the Alphabet-owned video-sharing site and potentially setting up a legal challenge.

Canberra

Australia expands teen social media ban to YouTube

President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

Washington

Global Tariffs

Trump says U.S. to hit India with 25% tariff starting August 1

Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

Ozzy Osbourne fans flood Birmingham streets to mourn late music icon

U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

Trump says Epstein 'stole' young women from Mar-a-Lago spa

Owdeh Hathaleen, a 31-year‑old Palestinian activist, teacher, and filmmaker behind the Oscar-winning documentary No Other Land, was shot dead by an Israeli settler near the village of Umm al‑Khair in the South Hebron Hills.

Jerusalem

Middle East Conflict

Palestinian activist killed by Israeli settler in West Bank

A powerful magnitude 8.8 earthquake off Russia's Far Eastern Kamchatka Peninsula triggered tsunami waves of up to 16 feet nearby, and sparked evacuation orders in Japan, Hawaii and across the Pacific on Wednesday (July 30).

Hawaii

Tsunami reaches Hawaii after huge quake shakes Russia's Far East

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

Israel announces daily pauses in Gaza fighting as aid trickles in

Abnormally high temperatures combined with heat and drought have fuelled destructive wildfires in parts of Europe, forcing thousands to be evacuated.

Athens

Heat fuels destructive wildfires in parts of Europe

Michigan officials say they will file terrorism charges and 11 charges of assault with intent to murder against the man who allegedly carried out a knife attack at a Walmart on Saturday. Lana Zak reports.

Garfield Township

Suspect in Michigan stabbing rampage to face terrorism charges

FAA investigators are in Denver after passengers and crew aboard an American Airlines flight were forced to evacuate when a tire blew during takeoff and the plane's rapid deceleration caused a brake fire, the airline said. Elise Preston reports.

Breakdown