Thursday, 02 July, 2020

5 Charts Show How Protests In Hong Kong Affected The City Economy


Widespread protests at Hong Kong have lasted for over six months — with small signs of abating anytime soon.

Hong Kong, a former British colony that returned to Chinese rule in 1997, is a international financial and business centre that links China along with the world.

Protests from town were originally sparked by suggested changes to some law That could have let extradition. They morphed into demonstrations which have requirements such as universal suffrage and democracy, and sometimes included clashes between law enforcement and protesters.

Listed below are five graphs to demonstrate the protests have influenced the economy and stock exchange of Hong Kong.

 

Hong Kong in recession

The protests, together with uncertainties like the U.S.-China trade warfare, delivered the Hong Kong market into a downturn for the first time in a couple of years.

It might get worse to the city. Iris Pang, Larger China economist at Dutch bank ING, estimated Hong Kong’s annual gross domestic product to drop from 2.25percent in 2019 and 5.8percent in 2020.

Retail sales slump

1 big driver of this economic recession in Hong Kong is a steep decrease in retail revenue . Personal consumption accounts for approximately 65 percent of the GDP of the city.

Hong Kong customers are wary about Spending as the economic outlook turned gloomy early. However, the protests made buyers hold back spending more, exacerbating the decline in the retail sales of the city.

Tourism decrease

Declining tourist arrivals to Hong Kong have added to the town’s economic problems.

Visitors from mainland China, who accounts to get Near 80 percent of tourists from Hong Kong dropped by approximately 4.45percent in January to October this year in comparison to the identical period in 2018.

Stocks upward in 2019

Regardless of the strain on the market, Hong Kong’s benchmark stock index — the Hang Seng Index — seems on track to finish 2019 greater than where it began the year.

That is because investors view the Hong Kong Stock market for a means to buy and market resources, based on founding partner at Mobius Capital Partners, Mark Mobius.

Best marketplace for listings

Hong Kong looks set to keep its standing as the market for inventory listings.

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