Consecutive weeks of protests in Hong Kong have rattled the value of real estate stocks, resulting in depreciating shares. This has left the market seriously disturbed, leaving developers worried about what’s coming next, according to CNN.
For the past four successive months, Hong Kong real estate market value has declined by 446 billion Hong Kong dollars or 56.9 billion U.S Dollars, forcing developers to suspend construction of homes, according to data from Refinitiv.
Weeks of pro-democracy protests in Hong Kong are battering shares in the city’s property developers and pushing its benchmark stock index closer to a bear market https://t.co/HMLdEg3Ufk
— CNN Business (@CNNBusiness) August 14, 2019
Real estate is not the only market hit by Hong Kong protests and trade tensions. Mass demonstrations have rocked the transportation industry, closing the Hong Kong airport for days. Retail stores have closed, and some of the largest global companies connected to Kong Kong have experienced revenue loss. (RELATED: Putin’s Popularity And Economy Reportedly Deteriorate As Russian Protests Continue)
In combination with pro-democracy protests, the US-China trade war has contributed to economic decline in Hong Kong, as well as in China and global markets. After President Trump announced he would increase tariffs on China, the yuan, China’s currency, dropped to its lowest value since the 2008 financial crisis. (RELATED: Democratic Candidates Say Obama Is The Reason The Economy Is So Good)
This week, European markets have also seen deterioration in their stock values, according to MarketWatch. Dips in the Asian market seem to be contagious across the global economy.