HK Protests Pose No Immediate Threat To City's Economy

Analysts say that Hong Kong's ongoing pro-democracy protests are unlikely to affect the city's economy. They admit, however, that a protracted conflict may force the companies to move their businesses out of the city.

Over the past few weeks, Hong Kong's streets are filled with protesters who are demanding universal suffrage. But not everyone in the Asian financial hub supports the idea. The protesters believe it is their democratic right to run their affairs and have their own candidates – not the ones approved by Beijing – contest the Chief Executive's election in 2017. Those who oppose the pro-democracy movement call the protesters trouble makers who are bent on disrupting the city's life and business. But to what extent could the ongoing protests affect the economy of one of China's special administrative regions?



City's competitiveness



"The movement is not going to affect the city's financial sector in the short term," Ricky Tam, chairman and founder of the Hong Kong Institute of Investors, told DW. "The rents in Hong Kong's central district – the Occupy Central's hub - have already increased manifold in the past five to six years, forcing many companies to move their businesses to other areas," he added.



Tam said the movement didn't emerge suddenly, and the financial institutions had sufficient time to work out contingency plans.



Although the short-term impact might not be drastic, according to Tam, the political instability could damage Hong Kong's competitiveness and appeal in the long run. "Companies that were willing to set up their offices in Hong Kong might look for other alternatives, for instance, Singapore," Tam explained. "The political turmoil is hindering the government's functioning."



More than the economic impact, what concerns Hong Kong's administration is the protests' political repercussions.



"I think the movement will motivate even those who have so far not been concerned about politics. The 'civil disobedience' would be an 'enlightenment' of the citizens – they will no longer accept fake democracy," Shiu Ka-chun, a lecturer at Hong Kong's Baptist University, told DW.



Shiu is also one of the founders of the Occupy Central movement. The activist believes that a city's success should not only be measured by its GDP. "Competitiveness is not the only important thing in a society - we also have to consider the well-being and happiness of citizens," he said, adding that the poor, students, and social minorities had never really got a real chance to play their role in the city's affairs.



Shiu also slammed the government for spending public money unwisely, splashing out millions of funds on useless schemes. "Let me tell you that under the current administration, Hong Kong's competitiveness has not been up to the mark for many years."



The resolve to fight



It is still unpredictable whether the protests are going to change Hong Kong's future. Chief Secretary Carrie Lam said on Monday, September 29, that the metropolis' government would postpone further discussions on political reforms. She also added that it would be unrealistic for Beijing to reverse its decision on vetting the candidates.



"The moment when Beijing made its decision, the possibility of any changes had already been ruled out," Shiu admitted.



So why do the protesters insist on continuing with their strike? "We probably cannot change the Chinese government's decision, but Beijing also cannot change our resolve to fight for real democracy," Shui said.