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Political Economic Situation of HK - Research Paper Example

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In the paper “Political Economic Situation of HK” the author analyzes tension between Hong Kongers and the government in Beijing. The tension has been on democratic situation of the city. On September 22, the existing pressure turned into a protest after the Hong Kong Federation of Students…
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Political Economic Situation of HK
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Download file to see previous pages The China National Tourism Administration has stopped tourists under package tours from visiting HK. The results have been the shortcomings in the economy as 30 percent of Chinese visitors travel via package tours. However, the stoppage of package tours is a temporary measure and does not point to the long-term structural change in China. It does not also mean that the Chinese government would cut the Individual Visitors Scheme  as it is one of the China’s bigger plans for integration with Hong Kong. Therefore, the movement has no long-term impacts on the economy. However, its long-term political and social effects can lead to long-term economic results.
Nonetheless, protests that have become more frequent are likely to erode the appeal of Hong Kong to global firms. Hang Seng index, the local stock market benchmark, has tumbled over 9% since hitting a peak in six months in September. The Hong Kong Monetary Authority revealed that banks have closed down 44 branches because of the protests. The situation of the city can thus push away investors as most sectors, as the financial markets are not operating normally. Most people who could be working are in the streets, protesting. According to the Citigroup economist, investors and businesses are in an environment; that is increasingly creating higher operational risks. The movement seems disorderly to most foreigners and has thus created a negative perception of Hong Kong and mainland China.
Despite the results of the protests, Chinese government has shown no sign of relenting. ...Download file to see next pagesRead More
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