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..


– [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. Political instability.
    Social insecurity.
    Half of the workforce camping on the streets.
    WSJ: Why is Hong Kong experiencing a recession?

  2. They will face more than recession. They should continue being stupid with their protests. They will even face famine and drought.

  3. I came to know that HK people used to look down upon the mainland Chinese people.Now the mainland China is economically growing whereas HK is going down.

  4. Many evident had shown foreign interference in stoking violence in HK from monetary incentives given to hooligans to vandalise and sabotage HK economy and supplies of googles and masks but China has claimed it facial recognition technologies can review the actual faces of criminals,very soon the days to face the music awaits those involved.

  5. Only those pro Chinese Communist party companies face recession, hk people are changing their consuming behaviour to boycott those pro CCP companies, great news to real hk people

  6. Hong Kong attracted a lot of tourists in the past, but there have been too many violent protests in Hong Kong recently. Tourists are not recommended to stay in Hong Kong. I personally recommend transiting through Hong Kong to Shenzhen, Zhuhai and Guangzhou (cities in Guangdong province). There is a high-speed railway. Tourists can travel from Hong Kong International Airport to Kowloon Station by Airport Express (this is a fast train but not the high-speed railway the media refers to), and then walk along a covered footbridge with good signage to the Hong Kong West Kowloon Station, which is the high-speed railway station. There are always sufficient seats on high-speed railway trains, so there is no need to reserve in advance. I recommend travelling by High Speed Rail to Futian Station which is in the CBD of Shenzhen.

  7. 100% INCORRECT NEWS REPORT on actual fact by this WSJ here. Please review more info from YOUTUBE videos then you will find this news are inaccurate. HK recession is correct due to VIOLENT protesters. Then only make conclusions are this action allowed in your own country.

    Just search in YOUTUBE "HONG KONG PROTEST" then only judge this NEWS report.

  8. Soros is waiting for it to happen but China won't let it be, of course they are facing big challenges in economy performance but it won't be recession.👊 WSJ don't waste your time here

  9. I wonder why?? Would it have anything to do with Hong Kong protesting for the desire to stay autonomous from the communist dictatorial Chinese government?

  10. HK people protesting for the preservation of the rule of the law and universal suffrage may be justified. However to hold the US and UK as paragons of virtuousness against the CCP is ridiculous and hints of a double standard. How many governments has the USA subverted and overthrown in the last 40 years including democratically elected ones? How many wars has the CCP started lately? The CCP may have done considerable damage to the Chinese especially during the Mao era but its kept its bullsh*t within its own borders!

  11. Those people are destroying their own futures. It is not hard to expect the the consequences if such protests prevails. Just take a look at present political and economic situations in Ukraine, Syria, Libiya, Egypt…….

  12. WSJ just won't tell the truth, can't bring itself to show the rioters violence. Only picture of the unrest was police tear gas and doesn't mention a single word on why many shops, malls and MTR stations are closed on weekends.

  13. HK just like Singapore at least for the past 6 years is the top three most expensive cities in the world. For 2019 both were locked in 1st place. That is the problem. The protests started only a few months ago. So it is not a factor.

  14. this guys destroy their own ecnomic enviroment, that is their price, since they dont like china , why china send money to them, thats fair, they can live along

  15. Does anyone in hong kong know of the Australian Julian Assange and what your beloved British Anglo-American Empire is doing to him ?
    It's obvious you morons don't or else you wouldn't be waving the U.S. or British flags around .
    Little you do know about the west .
    The enemy is everywhere you dildos.

  16. Even SARS couldn't do this. Even economic crisis couldn't do this.
    Your beloved "pro-democracy protesters" had this done.
    Good work,CIA.

  17. HK protestors:"We will defend our democracy against our government and China!"
    Me:"but if you hav democracy, then your government is democraticaly elected… am I the only person who see the contridiction?!"

  18. Can't believe 4 months later these illy intented reporters are still focusing the cameras at the police, and intentionally ignore all the violences caused by the mobs on the street.

  19. So, if like 50% of Americans stop working and start seriously protesting, they can crash the American economy? Sweet.

  20. Sadly human oppression may never end
    Slavery human trafficking forced child labor
    Gay transgenders non believers are murdered around the world

    Soon robot ai will be the next slave race as sad as it sounds its becoming reality

  21. The media tycoon said,"they don't want a good life, they want the democracy because they are not dogs, and he felt so touch when seeing the rioters attacking police. Whereas, his own sons are not participating in any of the protest, really strange, aren't hid sons youngsters too?

  22. DON’T blame the protesters !!! BLAME the evil corrupt CHINESE greed nasty GOVERNMENT !!! Hong Kong , do not give up !!! ❤️❤️❤️👍👍👍❤️❤️❤️

  23. Well they would, wouldn’t they… they have spent the last countless months striking for nonsense and not going to work. They will sort it out, they got themselves into it- they have to get themselves out of it.

  24. ALL ACCORDING AS GEORGE SOROS MASTER PLAN!!!
    He funds ANTIFA all around the world to destabilize countries and profit from the falling market!!

  25. Um….because the country is embroiled in civil turmoil? Seriously guys. Theres no hiding it and most of us won't be subject to reeducation for pointing out.

  26. ALL ACCORDING AS GEORGE SOROS MASTER PLAN!!!
    He funds ANTIFA all around the world to destabilize countries and profit from the falling market!!

  27. I mean why should those university student work? they can just protest in the street and get paid regularly, which is actually higher than their wage.
    Recession? Not at all for them.

  28. What's worse is this could be fuel for the Chinese communists to win the people's hearts and votes if they don't invade. The Bolsheviks and Hitler both used economic weakness to secure their powers.

  29. The Hong Kong riot is a political issue. Although there is rich gap problem, Hong Kong is still a peaceful city before June 2019. Hong Kong citizens don't understand why it happened. I believe that there is brain wash system in our education system. The thugs are mainly young students, teachers and young people. They hate the Communist thus they hate China. It is standard COOL WAR symptom. As Hong Kong is part of China, USA wants to use Hong Kong problem to influence China government. Actually it doesn't work. There are no ripple effect in China cities. Moreover the China citizens are more patriotic under trade war and HK riot. However Hong Kong riot may change to a regular which are similar to France yellow vest protesters. Hong Kong protests more violent

  30. I can now be able to travel to hk …. and those rich Beijing tourist will not be their … love it …. I’m from Canada and this is great news! We support the hk people … just the Beijing Chinese/ mainland call hk people names but I’m like then leave Canada and go to mainland if you like it Soo much lol

  31. Keep Hong Kong Free and we might be able to Free China. If Hong Kong fails, so might democracy for the rest of the World…

  32. Other countries still trying hard to attract Chinese investment into their countries..on the other hand in Hong Kong,they re told to pack their bags

  33. keep it up HK! just proves how stupid you people are. despite all the negative results you kept on insisting such methods. cant think of any other ways? like beating people gonna solve anything lol. oh well another 3rd world asian country coming up soon!

  34. Keep it up and they can experience a "depression" with USA. You can use democracy or what ever your game is to feed each other.

  35. I cant find any reports about the Catalan protest and 13 years sentence on the Catalan separatist leader on WSJ but it is full Hong Kong issue, disgusting! Democracy, freedom and human rights such beautiful words are miserably misused by politicians and media

Leave a Reply

Your email address will not be published. Required fields are marked *