Hong Kong protests may cost retailers HK$2bn says ANZ bank

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It is a most unusual sight on Chinese soil, and the most unsettling for leaders in Beijing. The spread of news and images of the protests has been blocked or heavily censored on the mainland, but as the protests carry on, the risk of contagion rises.

However, I don’t want to say anything about the politics, especially in such an accurate situation. Let’s just see it from a business perspective.

The demonstrations have coincided with Mainland China’s Golden week holiday, which usually prompts a huge influx of shoppers from the mainland. But China suspended travel permits for domestic tour groups looking to visit Hong Kong because of the protests. The US, UK, Canada, France, Italy, Germany and Australia have also issued travel warnings to their citizens traveling to Hong Kong, telling them to avoid the protest areas.

Hong Kong retailers located near the protest sites such as Causeway Bay and Mong Kok have had to close stores because of the unrest. Some restaurants and bars are also said to be suffering from slower business and closing early. What’s more, sales of luxury goods, cosmetic products, and consumer durables are definitely hard hit.

I think this protest move will lead to a dip in business. Anyhow, I don’t want it to influence people especially the students’ life too much. Hope to find a solution good for both sides soon.

 

Source:

http://www.bbc.com/news/business-29470815
http://www.economist.com/blogs/analects/2014/09/hong-kongs-protests

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