Chinese President Xi Jinping is so nervous about the position of the Communist Party that he is risking a new Cold War and imperilling Hong Kong’s position as Asia’s pre-eminent financial hub, the last British governor of the territory told Reuters.

Chris Patten said Xi’s ‘thuggish’ crackdown in Hong Kong risked triggering an outflow of capital and people from the city which funnels the bulk of foreign investment into mainland China.