Hong Kong’s economy keeps sinking following the US-China trade war and a global showdown. This unfortunate condition can go even worse if Hong Kong protest continues.
Accordingly, the escalating rally really injure the country’s image. The business environment, in addition, also deteriorates as the situation remains unchanged. Investors feel Hong Kong chaotic, investment fell.
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In the second quarter, Hong Kong GDP grew by 0.6%. Compared to the first quarter, it regrettably shrank by 0.3%. Bloomberg’s survey stated that it was the weakest quarterly figure in a decade.
Similar to other Asian markets, uncertainties about trade and economy policies dragged the index down. The rally, however, worsens it and various sectors. Stock, retailers, and goods exports are fine examples.
Furthermore, Hong Kong’s protest hurts other sectors as well. Tourism and shops, for example, experience the impact. Not only affecting the economy, mass protest also influences business hours.
“Whether it is a small shop on the street or a shopping mall, most of them have had to shorten business hours as they wait for the protesters to leave,” explained Iris Pang, Greater China economist at ING.
Looking at the current development, Hong Kong protest possibly harms the economy more as it keeps going.
What is the Protest About?
The protest is a part of Hong Kong’s most serious political crisis in more than two decades. As a former British colony area, “Hong Kongers” are against the idea that they might have to join mainland China after their special status ends in 2047.
As for the continual protest over the weeks, it began right after an act made by government. Hong Kong’s Chief Executive Carrie Lam’s refusal to scrap a highly controversial plan to extradite convicts in Hong Kong to China sparked the rage.
At the moment, the people demand better democracy. One of the demands is the resignation of the Chief Executive.
So far, the story will likely keep going. Moreover, many expects more unfolded stories following the mass protest. According to Bloomberg, protesters have prepared something up their sleeves for this weekend.