page_title: 2019–20 Hong Kong protests
section_title: Economy
hierarchical_section_title: 2019–20 Hong Kong protests / Impact / Economy
caption_attribution_description: 西營盤山城和你宵
context_page_description: The ongoing 2019–20 Hong Kong protests were triggered by the introduction of the Fugitive Offenders amendment bill by the Hong Kong government. The now aborted bill would have allowed extradition to jurisdictions with which Hong Kong did not have extradition agreements, including mainland China and Taiwan. This led to concerns that Hong Kong residents and visitors would be exposed to the legal system of mainland China, thereby undermining Hong Kong's autonomy and infringing civil liberties. It set off a chain of protest actions that began with a sit-in at the government headquarters on 15 March 2019, a demonstration attended by hundreds of thousands on 9 June 2019, followed by a gathering outside the Legislative Council Complex to stall the bill's second reading on 12 June which escalated into violence that caught the world's attention.
  On 16 June, just one day after the Hong Kong government suspended the bill, an even bigger protest took place to push for its complete withdrawal and in reaction to the perceived excessive use of force by the police on 12 June.
context_section_description: Official statistics showed that Hong Kong had slipped into recession as its economy had shrunk in the second and third quarters of 2019. Retail sales declined and consumer spending decreased. Some restaurants saw their customers cancel bookings, and certain banks and shops were forced to close their doors. Some supply chains were disrupted because of the protests. Meanwhile, some shops prospered as nearby protesters bought food and other commodities. Lower consumer spending caused several luxury brands to delay shop openings, while other brands quit. Stock of protest supplies such as gas masks ran low in both Hong Kong and Taiwan.
  The protests also affected property owners: Fearing the instability, some investors abandoned the purchases of land. Demand for property also declined, as overall property transactions dropped by 24% when compared with the Umbrella Revolution; Property developers were forced to reduce selling prices. Trade shows reported decreased attendance and revenue, and many firms cancelled their events in Hong Kong. The Hang Seng Index declined by at least 4.8% from 9 June 2019 to late August 2019. As investment sentiment waned, companies awaiting listing on the stock market put their initial public offerings (IPO) on hold, there being only one in August 2019 – the lowest since 2012; two large IPOs were shelved in June and July 2019. Fitch Ratings downgraded Hong Kong's sovereignty rating from AA+ to AA due to doubts over the government's ability to maintain the "one country, two systems" principle; the outlook of the city was similarly lowered from "stable" to "negative".
  Tourism was also affected: the number of visitors travelling to Hong Kong in August 2019 declined by 40% compared to a year earlier, while the National Day holiday saw a decline of 31.9%. Unemployment increased from 0.1% to 3.2% from September to November 2019, with the tourist and the catering sectors, seeing rises to 5.2% and 6.2% respectively during the same period, being the hardest hit. Flight bookings also declined, with airlines cutting or reducing services. During the airport protests on 12 and 13 August 2019, the Airport Authority cancelled numerous flights, which resulted in an estimated US$76 million loss according to aviation experts. Theme parks such as Hong Kong Disneyland reported fewer visitors. Various countries issued travel warnings to their citizens concerning Hong Kong, and many mainland tourists avoided travelling to Hong Kong due to safety concerns. The government announced a relief package worth HK$19.1 billion on 15 August, and another one worth up to HK$35 billion in September aimed at assisting smaller Hong Kong companies weather the protests and the US-China trade war. In early October, Li Ka-shing donated HK$1 billion ($127.5 million) to help Hong Kong's small and medium-sized businesses withstand the twin shocks.
  The economy in Hong Kong became increasingly politicised. Some corporations bowed to pressure and fired employees who expressed their support for the protests. Several international corporations and businesses including the National Basketball Association and Activision Blizzard have made business decisions to appease China during the protests and faced intense criticisms. The Diplomat called the Yellow Economic Circle "one of the most radical, progressive, and innovative forms of long-term struggle" during the protests. Corporations perceived to be pro-Beijing faced boycotts, some of which were vandalised. Meanwhile, "yellow" shops which allied with the protesters enjoyed a flurry of patrons even during the coronavirus crisis. Simon Shen, a political scientist, suggested that the Economic Circle could be an example of "identity economy" and predicted that the businesses involved could enjoy a "potential market worth of more than HK$100 billion", though some critics have suggested that the circle would not be sustainable.
caption: District Councilors collaborated with shops supporting the Yellow Economic Circle to organise a Lunar New Year Fair in Sai Ying Pun on 18 January.[554]
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