The ongoing anti-government protests in Hong Kong are leaving a lasting economic impact on the city, as noted by Charles Li, CEO of Hong Kong Exchanges and Clearing Ltd. He expressed deep concerns about the extent of the damage caused by the protests, which have persisted for over six months.
Li highlighted the importance of the “one country, two systems” framework that has defined Hong Kong since the handover from British to Chinese rule in 1997. However, the protests have significantly impacted the city’s economy, with HKEX reporting an 8% decline in profit in the third quarter, marking its largest drop in almost three years.
Local businesses, particularly in retail and tourism, are expected to bear the brunt of the protests. Many establishments had to close their doors during the demonstrations, leading to a decline in tourism and tarnishing Hong Kong’s reputation as a top travel destination.
Initially sparked by opposition to an extradition bill, the protests have transformed into a wider pro-democracy movement, pushing for universal suffrage and an investigation into alleged police misconduct. Despite the challenges faced, HKEX is projected to see a rise in earnings in the fourth quarter, driven by increased share sales, including Alibaba Group Holding Ltd’s successful secondary listing that raised nearly $13 billion.
Looking toward the future, HKEX is considering potential acquisitions as part of its growth strategy, following the failed bid for the London Stock Exchange Group. The economic impact of the protests is still unfolding, with businesses and investors monitoring the situation closely to gauge the long-term effects on the city’s economy.
For more information on the ongoing protests in Hong Kong, visit BBC News Asia – China.
To learn about the latest developments in the Hong Kong economy, visit Reuters Hong Kong.
