HONG KONG: WEEK 22 REVOLT  

Another weekend, another week of heated protests in Hong Kong.

Not even increased police presence could stop it.

It’s the Hong Kong people against the Chinese Government.

They know that if they lose, they’ll be living under government rule they would rather die than live under. 

Angry at recent clampdowns on freedoms, directed by the Chinese government, for the past month, the protesters have been increasing physical destruction against banks and retail businesses closely associated with Beijing.

This past weekend, the protestors set fire to the offices of Xinhua, mainland China’s news agency.

Police responded by firing tear gas and water cannons. More than 200 people were arrested.

It Keeps Spreading 

Across the city, more protests, both violent and peaceful, and more police on the streets.

Demonstrators tearing down goalposts from a football field fought with police, who fired teargas into the crowd and locked up scores of people.

In other sections of the city, peaceful protestors were beaten with batons and tear-gassed by tactical police called “raptors.”  

Fighting back, protesters built barricades to protect themselves from police.   

On Sunday, riot police were called into a number of shopping malls across Hong Kong to disperse crowds of protesters organized through a rallying call on social media. 

Dozens of photos appeared online showing smoke-filled scenes throughout the city caused by fires set by protesters and tear gas fired by police.

PUBLISHER’S NOTE: Last Thursday, the Chinese government issued a statement saying they would take all necessary measures to “safeguard the long-term prosperity and stability of Hong Kong.”

When the protests began in June, we stated that while the Chinese government was greatly concerned of damaging Hong Kong as the financial/banking center of Asia, they would not, in the end, relent to the demands of the people.

In fact, it was reported Sunday that Hong Kong’s government leader, Carrie Lam, is scheduled to visit mainland China to meet with Vice-Premier Han Zheng.  This marks the first official meeting between Lam and Beijing since 
the demonstrations ignited.

TREND FORECAST: Should the Chinese government crackdown escalates to mass-murder levels, not only will Hong Kong quickly dissolve as the Asian financial/banking hub, it will greatly increase geopolitical tensions between the U.S. and its allies and the Chinese government. 

Equity markets will be hit hard and already weak economies will suffer.

The months’ long street demonstrations, vandalism, and confrontations between police and protesters have seriously damaged Hong Kong’s economy. 

The world-renowned tourism trade and shipping port have both seen revenues drop significantly.  Popular retail stores, malls, and restaurants, normally bustling with activity, have either closed or seen a dramatic fall in activity.

Economic indexes have dropped to the lowest levels in 21 years.

Registering its first year-to-year contraction since the global financial crisis, Hong Kong’s Gross Domestic Product fell 3.2 percent quarter to quarter. Its PMI fell to 39.3, down from 41.5 in September.

This was the worst reading since the Panic of ’08.  And, as noted previously in Trends Journal articles, a figure below 50 denotes contraction.