Why Hong Kong Is Facing a Recession Amid Protests and Trade Wars | WSJ

Why Hong Kong Is Facing a Recession Amid Protests and Trade Wars | WSJ


– [Narrator] Hong Kong is
facing its first recession since the global financial crisis in 2008. Influenced by unprecedented factors. Including its own ongoing
anti-government protests and the trade stalemate
between Washington and Beijing. In February, the government
predicted Hong Kong’s economy would grow up to 3% this year. Six months later, that
forecast was slashed to zero to 1%. (speaking in foreign language) Since June, the city’s
tourism industry has suffered from the increasingly violent and disruptive pro-democracy protests. In August, normally a
strong month for tourism, arrivals in Hong Kong dropped
nearly 40% from a year ago. It’s the worst decline since May, 2003 when Hong Kong was grappling
with the deadly SARS virus. Occupancy rates of hotels in
some districts fell around half while room rates decreased 40 to 70%. – Mainland Chinese
tourists make up over 70% of total tourist arrivals in Hong Kong. But when protests started in June, that number has dropped. And there’s also increase
in anti-China sentiment in the city. – [Narrator] 16 years ago,
once the all clear came after the SARS outbreak, visitor arrivals and business
confidence swiftly recovered. But, as the anti-Beijing
mood grows in Hong Kong, so does opposition to the
protests in mainland China. The protests and the drop
in tourists have disrupted the city’s retail sales. In August, sales dropped
23% from a year ago. Their worst monthly decline on record. Luxury items were among
the biggest victims. Sales of jewelry, watches, and other valuable gifts fell nearly 50%, marking a record low. – The protests have
been disruptive for life especially on the weekends. In early October, there was a time when entire department stores were closed and major train stations
were also shut down. And also, if you go to
popular shopping districts like (speaking in foreign language), it’s actually a popular
destination for protests now. – [Narrator] And then
there’s the trade dispute between China and the U.S. Though the two sides emerged
from the latest round of trade talks with a truce in place, there’s still a lot to be worked out. The effects of the stalemate
have been felt in Hong Kong which relies heavily on
reexporting Chinese goods. Total exports are expected to
shrink nearly 4% this year. So far, the finance sector
has weathered the protests. – Prohibition on face
cuffering regulation. – [Narrator] However, when
the government invoked colonial-era emergency powers, it put to the test Hong
Kong’s rule of law. The authorities say they will only use the emergency provision to ban people from wearing masks at public gatherings but it also allows the chief executive to enact drastic regulations such as censorship, arrests,
and foreign exchange controls. The government said it had no such plans. Declining reexports and
the government’s struggle to restore order to the city have erased any economic
momentum from the start of 2019. Experts believe numbers for
the third quarter will confirm Hong Kong is in technical recession. – Despite the major decline in Hong Kong’s economic indicators, Hong Kong’s financial
buffers still remain strong. That can come under pressure if Hong Kong’s status
as a global financial and business center comes under fire and that could be really
difficult and challenging for its longterm growth prospects.

100 thoughts on “Why Hong Kong Is Facing a Recession Amid Protests and Trade Wars | WSJ

  1. Singapore, Shenzhen and Shanghai are laughing all the way to the banks.

    Unfortunately, Kuala Lumpur can only look on as a bystander.

  2. Freedom and Democracy are worth it. Hong Kong the word is with you. First they ignore you , then they laugh at you, then they fight with you and then you WIN.

  3. HK government / Police (controlled by China CCP) Brutally quash the peaceful demonstrators and labeled them as "Riots" from day one, and now "Terrorist" and these demonstrator's (mostly middle, high shool and university students) only "weapon" were Umbrellas and face masks. So wrong.

  4. HK governor, appointed by China CCP, completely ignore the demands of the people of HK. Now its not just against the extradition bill, it is also about government /Police accountability among others. It is the riot police that ordinary people in HK are afraid of, NOT the demonstrators.

  5. Fight for Freedom Idealism that actually could destroy HK. When hkngers and dumb protestor not realize that fight for freedom idealism that support by western that eventually will destroy HK.

  6. In HK these days, Where there is police there is violence. HK people's basic civility, human rights and freedom they've enjoyed for over a centry are now being taken away in front of their eyes. What would you do if you were them?

  7. Everyone in HK knows the quick recovery from SARS was a direct result of Beijing pumping millions of mainland tourists into HK. Today the widely supported riots are anti-china. Can't expect Beijing to foot the bill for HK again. The general public will all suffer.

  8. what would you do if you're peaceful demonstrator trying to Not loss your basic rights, instead of being heard by your government, you're met with violent riot police charging at you like mad dogs, pushing you down on the ground, biting your head till you bleed, having your hands tied behind your back while your neck and collar bone being squashed by their knees, and the whole time they block the views and cameras of all the reporters. And you know that you may disappear forever, or you may appear somewhere dead and your families are told you committed suicide. What would you do. are you allowed to fight back?

  9. HK boomed on the back of China opening up from 1970s – 2001 when China joined WTO. HK GDP was about 1/3 of China. Today, it is about 3% of China GDP.

  10. This is what puppet lam gets for not listening to the people in the very beginning. The riots and damage wouldn't happen. Things are going to get worse before it gets better

  11. Thanks to the good old US and Wall street greed's, this monster China CCP is Soon coming to the streets near you. The word "freedom" will be forbidden.

  12. Come on , it's been so obvious since the beginning that Hong Kong is gonna go into a recession thanks to their idiotic youth! They do not even care about their parents' jobs or other people's livelihoods , all they know is violence+vandalizing = democratic and peaceful .

  13. It amazes me the same liberals in the US complaining about Trump by allow China to do worse things to HK. The overreach of government are bowing down to China.

  14. This is why the 2nd Amendment was created. To fight against a tyrannical government. To keep and bare arms. See Hong Kong. So will be America if the 2nd Amendment is removed which is already underway through various means. If it happens, Hong Kong is America's future.

  15. Colonial Britain treated Hong Kong better than Communist China. Hmm Sanders, Warren and all the Democrat Party promotes Socialism/Communism. Why do some many Americans want this for their life? It's insane to me.

  16. — HONG KONG —- DECLARATION OF INDEPENDENCE

    We, the People of Hong Kong, hereby DECLARE that we are a FREE and as of right, a Sovereign PEOPLE.

    We are not now, nor have we ever been a part of the Communist Party of China. China, as an unfree, undemocratic, totalitarian, surveillance State, is not recognizable to anyone living in Hong Kong.

    We must state clearly the issue facing us: Communism, the political scourge of this planet, is at our doorstep and threatening everything we hold sacred. Freedom and democracy shall die in Hong Kong or it shall live forever.

    This is the great struggle of our time: Hong Kong "shall become all the one thing or all the other".

    History will record either that Hong Kong became like China or that China became like Hong Kong – no other outcome is possible. None.

    Never in history has an elder generation of its citizens bargained for their own freedom during their own time, by condemning their future offspring to live unfree under total communist rule. Such was the Devils bargain made by the UK and the Communist Party of China, and imposed upon our generation and the next, in perpetuity, forever.

    We are Hong Kongers and we utterly rejects this and call on all right minded nations to step up and end this nightmare. This is the time. This is the place. This is it. Now. Now. Now.

    On this issue we must be clear: no future generation of Hong Kongers shall be sacrificed and given over to Communist Rule. NOT ON OUR WATCH. We NEVER voted to approve Communist rule of Hong Kong and a Free People could never agree themselves into such a state of utter despotism.

    WE STAND FOR HONG KONG. NO EXCEPTION. WE PLEDGE OUR HONOR AND OUR LIVES.

    Signed,

    'Publius'

  17. They are not protesters but ISIS and distroying their own city. The rioters will pay the price for that. Shame on you those idiots.

  18. Let me see if I get it …..They are protesting for the freedom of overpaying for an apartment, a tiny one, in HK so they can continue the money changing hands game of yesteryear. While reading and eating western media garbage.

    Meanwhile the CPC can create another HK , as matter of fact it has done already through Shenzhen and Xhangai , thus neutering HK.

    I am not taking sides, I do not even live in China, let alone HK. Yet, it seems to me the battle may be raging , but the war is over. These kids don’t even know it. They’ve been sold down the river by their own leadership.

    The mainlanders want to claim their property and chattel back. If I was in these kids shoes, and had any sense, I would’ve been out of Dodge a long time ago. There is no future for them there , at least the way they knew it.

    As they used to say…….Go West young man, go west.

  19. We can help.HongKong through tourism. And HongKong can make democracy tours, showing us places of key events. This way they know we support them and that they are not alone.🇵🇭🇺🇸🇹🇼🇬🇧🇭🇲🇯🇵🇲🇾🇪🇺🇭🇰🇮🇳🇰🇷

  20. The longer term outlook is a return to the norm. Which is to say, that Shanghai returns to its pole position as the financial center of China. The success of HK is due in large part to the circumstances of the Opium Wars. In statistical terms, we call this “regression to the mean”.

  21. Don’t see US encouraging American visitors to prop up HK economy, rioters are being used and abused at the same time by America

  22. “Democracy is a con game. It’s a word invented to placate people to make them accept a given institution. All institutions sing, ‘We are free.’ The minute you hear ‘freedom’ and ‘democracy’, watch out… because in a truly free nation, no one has to tell you you’re free.“
    Jacques Fresco, born 1916~died 2017.

  23. HK is once a proud city with excellent access to the international markets…. but after these rioting, it will just become a fishing village…. 🙂

  24. The ironic thing is that these protestors will end up migrating and working in China in near future. All the good jobs will go to Shanghai, Shenzhen. Of course when they will move to mainland , they will behave as good boys. Actually there are 200,000 Taiwanese working in mainland

  25. Now they blamed on protests for recessions regardless of the true cause of trade war between China and US and the global trend, forgetting China wanted to use Extradition Bill to deal with their own cheating and stealing through Hwawei and trying to use Hong Kong to get back to US on Extradition of Meng was the real cause of protests and recessions. The real global and Chinese economy are collapsing from within, and totally not because of Hong Kong at all!

  26. You see, their morals, their code, it's a bad joke. Dropped at the first sign of trouble. They're only as good as the world allows them to be. I'll show you. When the chips are down, these… these civilized people, they'll eat each other. See, I'm not a monster. I'm just ahead of the curve.

    RIP Heath Ledger, your legacy resonates ever so loudly with not only the new Joker movie, but our times.

  27. There are many videos indicating shortage of place to live contributing highest rent. In addition to protest there is nothing left to work on after june. 2019

  28. Everyone that calls these protesters "rioters" is on the side of China make no doubts about it. They have no integrity.

  29. It may be a good idea for foreign investors to put money in to Hong Kong in order to prevent a rapid economic collapse. Hong Kong's economy falling effects the whole world. It may be wise to help the people of Hong Kong, even if one does not see a return on their investment.

  30. This mainland lady wants to be a heroine. It is fool hardy to go against a mob. They could have done worst things to shame her .

  31. Hong kong government should catch all the protesters and put behind bars ASAP… Got so many people but useless the government never do their job only know how to talk but no action taken

  32. Let's be honest; since when does America or the rest of the world G.A.F. about muslims or chinese while they've been bombing them for the last century and mocking them since the beginning of time. The way I see it, they don't care about chinese freedom, these same people are the ones cracking jokes about sum ting wong and calling them smelly for the last century. They just HATE chinese and will support anything or anyone opposing them. Honest truth, no one gives a f about HK, they just hate chinese. lol

  33. The rioters achieve their goal, destroying their once prosperous city. Where are they going to get employment with a arrest record and in a city in recession?
    Their only hope is to migrate to their beloved US & UK. There they will suck in prejudice, swallow up discrimination and enjoy second class yellow citizens. No matter how un-happy they become, do not demonstrate PEACEFULLY as they do in HK. They will be shot with REAL bullets. One good thing is that they will be buried with US or UK flags wrapped around their corpses……..free at last.

  34. The US thought they can drive the capital out of HK and to Wall Street by destroying the city, how's that plan turning out?

  35. Whites claim they are superior to us Asians just because they are whites. There is nothing good about belonging to the side of whites. Those in HKG should change their minds then respect PRC.

  36. It not an anti-government demonstration.

    It's a separatist terrorism and coup. They are holding the rest of Hong Kong population as hostages. They Pied-Piper school children to commit terrorism.

    If you are a patriot, the masked terrorists will beat you to death, threaten your family. The black-hearted international media and masked "peaceful protesters" are facilitating their terrorism. They will destroy Hong Kong and its people unless Hong Kong comply.

    Please save Hong Kong.

    P/s: YouTube will silence us by deleting our comments.

  37. 14-1 5 hairy has exposed their EVIL act to the whole world watching now… keep fighting for freedom, stand with HK & Taiwan..!! There is no U-turn… running for Marathon see who has longest breadth !! Suddenly all 14-1 5 hairy disappear now after the 15yrs girl death ? are they digging the tunnel to escape ? 14-1 5 hairy HK Polxce run like mad dog…in shopping mall..hk ppl now very smart… this is a long distance marathon race…. let the 14-1 5 hairy run run run like mad dog..!! 14-1 5 HAIRY digging tunnel prepare for escape route now.!!

  38. Whites claim they are superior to us Asians just because they are whites. Because of this severe racial caste of the West no matter how Asians work your status is limited, you cannot surpass whites. But in PRC it's unlimited. Ironically the West is a far more bigotted world like the communist world than PRC. Think about why we had to gamble then needed to attack Pearl Harbour then desperately fight against the white supremacist USA. Because we are limited. We have nothing to lose even if we lost since we have been already limited by the severe racial caste of the West. PRC will make our dream 大東亜共栄圏 come true.

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