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. Someone is destabilizing the country that way it’s easier to just take over I guess the Chinese do steal tech n ideas

  2. https://youtu.be/J43_In_Wyjg hello, fellow blind western citizens. Here is the evidence most requested. HK mob disguise themselves as reporter. When arrested, the video only shows hk police beating up reporters.

  3. Bad policies. The HK Government is purposely not doing anything. Every policy is pro-China which guaranteed protests. Very few policies actually benefit the people. People don’t take the street for no reason. People want a government that does thing for people, not privileged, not the Chinese, not officials from CCP, for the people and yet no ordinary people has a vote.

  4. Capitalism is Dying fast along with the Globalism and the western political system is crumbling and can no long solve any problems,
    We Need Communism!
    We need Great China!
    We Need China’s Social Credit System!
    We need Great leader like President XI Jinping !

  5. It will be a depression soon when global financial crisis exploded eg EU, US West negative interest rate implementation awaiting backfire…

    Afterwards there will be WWIII, to reset the global financial powers

  6. China’s ruthless regime is the greatest danger to freedom and democracy in the world, western capitalist created this monster, and now this tyrant regime is spreading its brutal and criminal system of oppression to other dictators around the world. China and Russia are trying to destroy western democracies. But capitalist don’t mind if western governments become like Chinese system, because for them profit and greed is the ultimate value. See how much money they are pouring into Trump’s campaign, who is an insane corrupt president.

  7. A recession will only hurt the pockets of the rich & powerful. It will do no damage to those who already have nothing to lose.

  8. if a good recession send the 1 mil. mainlanders back to China ,then not only you do not need to face the Xiang ba lao daily but a good housing supply will also materialized.KEEP THE FIGHTING AND DISRUPT THE "FAMIN" people that do come to H.K. x cash.

  9. PM Lee of Singapore 🇸🇬 on HK:
    From China's perspective, they must not forget that there are 2 systems in one country whereas
    From HK's perspective, they should remember that's it's one country 2 systems.

  10. This kind of long protest doesn’t happen in America coz everyone here have bills to pay. No one over 18 yr old still accepts parents allowance.

  11. I just wonder that is there some city in mainland can replace HK completely. The bad attitude, self-supremacy and hostility towards mainlanders is unacceptable.

  12. Thanks to all these protesters. Even if u give a free air ticket and free hotel accommodation I won’t want to visit HK. I am from Malaysia. U just can’t more stupid than these stupid protesters in HK. What they are doing is equivalent to disowning your own race and ancestry. Total madness. Best way to wake them up is to let them ROT.

  13. If your supporting the protesters/rioters/terrorists you need to educate yourself.

    Google and read what normal Hong Kong citizens are saying. Watch the 100’s of videos where citizens are being beaten up because they have a different opinion. It is beyond disgusting. If your fighting for democracy how can you not allow other opinions. Absolutely sick.
    Hong Kong is rated by the Cato Institute in the 3rd spot on the human freedom index and the US is in the 17th position.

    Don’t be brainwashed by the lies.

    Please educate yourself before taking sides

  14. America is the biggest winner out of this HK China situation. Agenda achieved. I can't think of any reason why China would want HK to do bad, it only makes them look bad. When China looks bad, America looks good.

  15. Can’t imagine WSJ giving out fake news!
    No protesters are Anti China or Anti Gov or Anti-Beijing, people asked the Govt to ban a new unreasonable bill only at the first place!

  16. Hong Kong brought this on themselves… now they will suffer economically … and have gained nothing… the world will say oh we feel so bad for them but that is all they will have. Hong Kong will wilt and die economically… China will simply prop up Shanghai or Shen Zhen and Macau as new economic bridges to the world. Time erases all hard feelings and the best businessman in the world will only care about turning a profit. The naive souls in Hong Kong have lost.

  17. Hong Kong citizens: "it's worth economic losses to fight for democracy"
    American Businesses: "but what about the money?!"

  18. So the protestors wants a better city by destroying their own city? This is much deeper than just wanting freedom. They should learn how to protest from Dr. King if what they want is freedom.

  19. They need to do something they can’t keep coming to America like they better than us when they have no power in their own country. It’s easy to go somewhere where others have already protested and fought for equality and act superior. Do it in your own country. That goes for all others that think they are better than the blacks and browns in America. Go through what we did before you start feeling superior. Three generations of my family fought in war just to come home to racism and bigotry. Is my country perfect no. But at least we stick it out and fight. Instead of uprooting and profiting off the sweat and tears and blood of others.

  20. Typical WSJ reporting. Nothing matters but money to them. Human rights be damned as long as there are bundles to be made.

  21. well, nobody ever said freedom is free.

    Plenty of democracies with 1/3 the GDP per capita of HongKong. Everything is possible.

  22. you know why its always students young people and irrationals there, cuz they dont have jobs. they like party with crowds. they dont think too much. they like use big simple slogans, just as all those political elections nowadays. People don't spend time knowing what they are voting for but just read some slogans by charming leaders. They overuse the word of freedom instead of actually work and study to make it a better place. They take airplane around the world quit studying , sitting outside claiming for environmental protection. But they are naive, whereever there are people, there are soceities, there are rich people in power, there are selfish individuals or groups sacrificing the humanity and empathy and .our natural for benefits and profits. As long as there are people, there are greedy. The only way is, to sit down, like some scientists, making study in microorganism that can diguest plastics for example. The new Nobel price economist winner using fieled studies for poverty. Thats what people should do. But because it is hard , lazy people don't do it, they sit and shout to protest like soma party animals ,destroying public facilities. like these HK protesters and these spanish ones. in name of freedom it is just a politicial power shifting. To change the world is never just to change political power. you have to make a better self you have to solve problems use science and technologies by pushing yourself studying and research and change.

  23. The UN: boosting the economy equally so that the gap between country can reduce and save people from proverty is one of our first criteria
    Also China- one of the big chair in UN: but…politic is funnier

  24. 5 demands of #HKers:
    1. Completely withdraw of the Extradition Bill
    2. Dropping charges against arrested protestors
    3. Retract the proclamation that protests were riots
    4. Independent investigation into police brutality
    5. Implementation of universal sufferage

    #BeWater #BeHumble

  25. The Communist Party not only raped and kidnapped the public opinion of the Chinese people, but also raped and kidnapped the international community.

  26. If people from hong Kong had access to guns, this would never happen. Now China actually got hong Kong back to its socialist domain.

  27. Hongkong mob: f**k the money, f**k the job, all we need is freedom & democracy.
    Meanwhile in north Korea, Kim is telling he's people, f**k the money, f**k the US, we got communism!

  28. voteing rights aka equality in voteing rights in government representation of the people vs corporate representation inculding seats held in the goverment which leads to farin favortism in laws a loose form of quid pro quo

  29. At this point, I don't think we care about economic growth anymore. We're already wealthy enough to search for something more noble. Money isn't everything.

  30. Without real freedom and rule of law, all the money you are earning won’t be sustainable. It is time for HK people to stand out and protect their rights. Wish the people from China will realise the problem of communism before it’s too late.

  31. The government is plotting to put the blame onto the protests. The police has effectively taken control from the beaurocracy. They have ordered police to mask themselves and carry batons and sprays and let them attack indiscriminately without and consequences. The metro stops serving early at night. People just avoid moving around at night. It is the government's plan to kill Hong Kong's economy.

  32. I am for Hong Kong citizens protest against the expansion and increased totalitarianism of the Chinese government, the economy there can recover later provided that the demand of the protests is satisfied.

  33. Thanks to the rioters that destroy the Hong Kong brand -heaven of shopping. Bravos to the new Hong Kong brands! Famous at training rioters, non-professional biased reporters, non-professional teachers that brain-wash students, designing false media and empty phrases without solving real issues, high paying councillors that do nothing but just oppose and argue, Carrie Lam that does not show true leadership to impose strong measures against the chaos ! Yet $$ fund to those democracy parties! They should pay for the damages of the subway station . Criminals will love to stay in Hong Kong without the expedition law!

  34. I wished I could listen to sthg with more insights rather than falling number of tourists and sales of luxury goods. Does WSJ understand that most of general public in HK hate that our city has been packed with tens of millions of Mainland tourists and our local shops has been replaced with luxury stores? Quieter streets and more local shops are what we want. Of coz economic recession is undesirable but it’s an opportunity for HK to shift from earning easy money from Mainland tourists to businesses which add more values and is sustainable.

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