Hong Kong Riots: Analyst: Violence will affect overall economy
Besides the tourism industry, many experts believe that the overall economy of Hong Kong is likely to be dampened by the riots. Our correspondent Xi Jia spoke to Michael Hewson, chief market analyst at CMC Markets -- a UK-based financial derivatives dealer. Let's hear what he had to say.
MICHAEL HEWSON CHIEF MARKET ANALYST, CMC MARKETS "I certainly think when you see people rioting on the street, it's not a good ad for any city, but particularly HK which relies heavily on investment being one of Asia's biggest financial hubs. And also relies a lot on retail sales and tourism. Take last year for example, they collected a record tax of revenues of 342 billion HK dollars. I think it's highly unlikely, given the retail sales data that we've seen this far this year, every single month has been negative, that they will be able to repeat that. So certainly in terms of going forward, the longer this unrest goes on, I think it's most likely that the HK economy will fall into a technical recession in Q3. It contracted in Q2, it's quite likely that it will contract in Q3."