Daily Management Review

Hong Kong magnates lose $ 19 billion due to protests


Wealth of Hong Kong businessmen has declined markedly over the past two weeks in the active phase of the protests.

Thomas Au
Thomas Au
Financial assets on the Hong Kong Stock Exchange are also under pressure from the US-China trade war, but the local political crisis is becoming an increasingly serious factor in the short term.

According to Bloomberg estimates based on the Bloomberg Billionaires Index, since July 23, the 10 richest Hong Kong citizens have lost a total of $ 19 billion as a result of falling quotes of companies controlled by them. Over the past two weeks, Li Ka-shing, the richest businessman in the city, has lost about 9%, or $ 2.7 billion.

The protests have already led to negative consequences in the tourism sector, as well as caused a decrease in the retail sales of local companies. Hong Kong Finance Minister said that economy of the special administrative region of Hong Kong could fall into recession in the future.

Value of real estate in the city may also fall down in case of continued protest. As a result of the protests in Hong Kong, serious transport problems have already begun. According to Head of the Hong Kong administration Carrie Lam, the city is on the verge of a very dangerous situation.

source: bloomberg.com