AIRLINK 196.38 Increased By ▲ 4.54 (2.37%)
BOP 10.11 Increased By ▲ 0.24 (2.43%)
CNERGY 7.75 Increased By ▲ 0.08 (1.04%)
FCCL 38.10 Increased By ▲ 0.24 (0.63%)
FFL 15.74 Decreased By ▼ -0.02 (-0.13%)
FLYNG 24.54 Decreased By ▼ -0.77 (-3.04%)
HUBC 130.38 Increased By ▲ 0.21 (0.16%)
HUMNL 13.73 Increased By ▲ 0.14 (1.03%)
KEL 4.60 Decreased By ▼ -0.07 (-1.5%)
KOSM 6.19 Decreased By ▼ -0.02 (-0.32%)
MLCF 44.85 Increased By ▲ 0.56 (1.26%)
OGDC 206.51 Decreased By ▼ -0.36 (-0.17%)
PACE 6.58 Increased By ▲ 0.02 (0.3%)
PAEL 39.77 Decreased By ▼ -0.78 (-1.92%)
PIAHCLA 17.20 Decreased By ▼ -0.39 (-2.22%)
PIBTL 7.99 Decreased By ▼ -0.08 (-0.99%)
POWER 9.20 Decreased By ▼ -0.04 (-0.43%)
PPL 178.91 Increased By ▲ 0.35 (0.2%)
PRL 38.93 Decreased By ▼ -0.15 (-0.38%)
PTC 24.31 Increased By ▲ 0.17 (0.7%)
SEARL 109.27 Increased By ▲ 1.42 (1.32%)
SILK 1.00 Increased By ▲ 0.03 (3.09%)
SSGC 37.75 Decreased By ▼ -1.36 (-3.48%)
SYM 18.83 Decreased By ▼ -0.29 (-1.52%)
TELE 8.53 Decreased By ▼ -0.07 (-0.81%)
TPLP 12.14 Decreased By ▼ -0.23 (-1.86%)
TRG 64.76 Decreased By ▼ -1.25 (-1.89%)
WAVESAPP 12.11 Decreased By ▼ -0.67 (-5.24%)
WTL 1.64 Decreased By ▼ -0.06 (-3.53%)
YOUW 3.87 Decreased By ▼ -0.08 (-2.03%)
BR100 12,000 Increased By 69.2 (0.58%)
BR30 35,548 Decreased By -112 (-0.31%)
KSE100 114,256 Increased By 1049.3 (0.93%)
KSE30 35,870 Increased By 304.3 (0.86%)

Hong Kong's reputation as a dependable financial hub took a hit on Friday after Fitch downgraded the city's sovereign rating, citing ongoing protests and uncertainty caused by closer integration with the Chinese mainland. Millions of pro-democracy supporters have taken to Hong Kong's streets for the past three months in the biggest challenge to China's rule since the city's handover from Britain in 1997.
The sometimes violent protests have heaped pressure on Hong Kong's economy, which had already been under pressure from the US-China trade war. In a statement on Friday, Fitch announced it was downgrading the city as an issuer of long-term foreign currency debt from an AA+ rating to AA with a negative outlook. Bloomberg News reported that it is the first time the credit rating agency has made such a move since 1995, a period when uncertainty had spiked over Hong Kong's handover to China.
"Ongoing events have... inflicted long-lasting damage to international perceptions of the quality and effectiveness of Hong Kong's governance system and rule of law, and have called into question the stability and dynamism of its business environment," Fitch said. "The gradual rise in Hong Kong's economic, financial, and socio-political linkages with the mainland implies its continued integration into China's national governance system, which will present greater institutional and regulatory challenges over time."
Hong Kong's Hang Seng Index brushed off the news, ending Friday 0.66 percent higher. The unprecedented protests in the semi-autonomous hub were sparked by a proposed law allowing extraditions to the authoritarian mainland. Opponents saw it as the latest move by Beijing to chip away at the city's unique freedoms, such as its independent judicial system. But as Beijing and city leader Carrie Lam refused to budge, the movement morphed into a broader campaign calling for democratic reforms and police accountability.

Copyright Agence France-Presse, 2019

Comments

Comments are closed.