“Brink Of Collapse”: Hong Kong Businesses Struggle To Survive Amid Violent Protests
- China will eventually intervene to end the violent riots. But not so soon. China is winning the propaganda war against the pro democracy rioters. It is using the Hong Kong situation as an object lesson for all mainland Chinese citizens: “See the real consequences/effects of western pro democracy demands! Society collapse and rule of law no longer exists”. It would not surprise me to see China allowing Hong Kong to collapse totally before stepping in. The reason is: more Hong Kongers will support China intervention when the situation worsens.
– - You must keep in mind that China do not need Hong Kong. In an obvious warning to Hong Kong in August: China plans to make Shenzhen a ‘better place’ than Hong Kong, China can make Hong Kong totally irrelevant. There is nothing Hong Kong has that China cannot do without. The reverse is not true. Hong Kong’s survival is dependent on China. 80% of the water in Hong Kong is from China. The economy is dependent on mainland China. So, Hong Kongers be careful what you wish for, the city may not survive the self inflicted violent pro democracy riots.
– - “Brink Of Collapse”: Hong Kong Businesses Struggle To Survive Amid Violent Protests
by Tyler Durden, https://www.zerohedge.com/
Hong Kong chief executive Carrie Lam said earlier this month, the city’s economy had slipped into a “technical recession” after many months of violent protests.
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Bloomberg’s new report, comprised of several interviews and retail data points of the city, offers a leading view of economic turmoil in the city that could lead to a severe financial crisis. Kirio Zhou, a resident of mainland China, spoke with Bloomberg and said the retail business in Hong Kong is on the brink of collapse. Rooms at the most high-end hotels, like Marco Polo Hongkong in Tsim Sha Tsui, are going for $72 per night, a 75% discount versus last year.
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“I thought it was a per-person price at first,” said the 23-year-old lawyer, who saw Hong Kong’s small but expensive accommodations as a big pain point. “But now really cool places are offered at a low price. I hope this will continue.”
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Paul Luciw, an internet entrepreneur, said the hotel traffic in Hong Kong has dropped. He was able, according to Bloomberg, barter a hotel room at a luxury hotel in the city for ad space on his website.
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Hong Kong’s Aug. retail sales were awful, the worst on record., and the accounts from Zhou and Luciw — indicate just how desperate Hong Kong businesses are to survive.
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“It’s absolutely life and death for us,” said Douglas Young, co-founder of Goods Of Desire, or G.O.D, a lifestyle and fashion store-chain operator in Hong Kong, in an interview with Bloomberg Television on Wednesday. “At the moment we’re calculating whether or not it’s cheaper for us to just fold or to continue, it’s that serious.”
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Retail sales in Aug. plunged 23% Y/Y, worse than the 21.48% drop in Sept. 1998, as violent protests continue to cause mini-economic shocks in shopping districts and malls.
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