Salient to Investors:
Gareth Leather and John Higgins at Capital Economics said:
- If the protests in Hong Kong continue, its tourism and retail industries, some 10% percent of its GDP, would be hit hard, and Hong Kong could easily be pushed into recession.
- If Hong Kong’s status as an international financial center is jeopardized then China’s own economy would suffer.
Adrienne Lui at Citigroup said the strained relations between Hong Kong’s executive and legislative branches could impede passing key economy boosting policies and businesses and investors increasingly build in higher operational risks.
Andrew Colquhoun at Fitch said:
- The demonstrations are unlikely to have an impact on Hong Kong’s credit rating in the short-term, and does not expect the protests to become on a wide enough scale and length to have a material effect on the economy or financial stability.
- Economic policies are needed to deal with the overpriced housing market, the aging population, and future infrastructure needs.
Read the full article at http://www.businessweek.com/articles/2014-09-30/hong-kong-protests-trigger-new-worries-for-chinas-economy#r=rss
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