Beijing will do what it takes to support HK’s economy

By Hu Weijia Source:Global Times Published: 2019/9/5 23:18:40

Concerns over a possible recession are growing in Hong Kong as the city's economy faces its worst crisis since the global financial crisis in 2008.

A string of recent indicators underscored how the riots in Hong Kong are affecting the city's economy. The tourism industry is one of the major pillars of the local economy, but some statistics show tourist arrivals were down 31 percent in the first week of August compared with a year earlier. 

An economic storm has formed, and it will inflict losses on a wide range of areas including tourism, retailing, finance and real estate. The economy is having a hard time. The downside risks have drawn close attention from the central government and local authorities in the Hong Kong Special Administrative Region (HKSAR). Neither of the authorities has any intention of ducking the questions faced by the HKSAR's economy.

Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said on Wednesday that she will take four actions to start dialogue and end unrest in the city. Her words can be seen as a signal that the HKSAR government will take more active measures to manage risks and control crises. The HKSAR government is making efforts to restore business confidence. Ending persistent violence is the first step to prevent Hong Kong from falling into recession.

Beijing firmly supports the HKSAR government's actions to stabilize the economy. The central government won't allow economic chaos to engulf the city. In 1997, Hong Kong was subject to speculative attacks and faced immense pressure on its currency. The reason why Hong Kong could survive as a global financial hub was because of support from the central government. 

Now, Beijing has greater strength to maintain the stability of Hong Kong's economy amid internal and external attacks and maintain its position as a global financial hub. The central government has various tools that it can deploy to reach this goal.

Hong Kong has chronic economic problems that some observers claim are the deep-rooted reasons for riots in Hong Kong. A key issue will be to offer development opportunities to the city's young people. The central government will not be stingy in supporting the Hong Kong economy and helping Hong Kong solve its chronic problems.

The author is a reporter with the Global Times.


blog comments powered by Disqus