HONG KONG—As China drew up a new security law for Hong Kong last month, its top Foreign Ministry official in the city gathered international business groups and diplomats to deliver a message from Beijing: Don’t panic.

The law would target only a small group of radicals and wouldn’t impede the free market ethos behind Hong Kong’s rise as a global business hub, the official said. But now that businesspeople are finally seeing the law, there is much to cause concern.

Read More