Hong Kong bank warns protests could hurt economy

by Chris Mills Rodrigo - 08/21/19 10:57 AM ET

A major Hong Kong bank on Wednesday warned that protests in the city could harm the economy in both Hong Kong and mainland China, Reuters reported.

Bank of East Asia warned that the unrest could reverberate.

“The tense atmosphere [in Hong Kong] is likely to weigh on consumer and business confidence, and on inbound tourism, if there is no resolution soon,” the bank said in a statement obtained by Reuters.

{mosads}Hong Kong has been wracked by protests for months. The protests were initially sparked by a proposed bill that would have allowed criminal suspects to be extradited to mainland China.

Chief Executive Carrie Lam suspended the bill, but that has failed to stem the protests, with many locals expressing fear it could be revived and expand China’s control over the city. The protests have also broadened, with demonstrators voicing larger concerns about protecting the city’s political arrangement.

The city was guaranteed a legal system independent of Beijing when it was transferred from British rule in 1997 under a “one country, two systems” order. Pro-democracy activists worry that arrangement could be threatened.

While most protests have remained peaceful, demonstrators have managed to shut down airports and other commercial hubs.

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