HONG KONG – As one of the world’s most important trade and business hubs, Hong Kong was always going to struggle this year because of the escalating U.S.-China tariff war.
But after three months of anti-government protests, the semi-autonomous Chinese city, a shopper’s paradise and gourmet destination for millions of tourists each year, is facing an existential as well as an economic crisis.
The world’s biggest equity deal this year was to unfold in Hong Kong later this month but has been put on hold. Banks are issuing unprecedented profit warnings, while hotels and restaurants are half-empty. Several global events have been postponed and economists say retail sales could drop by 20%-30% this year. (Reuters)
