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2019/09/17
Market Insight by Daryl Liew - Hong Kong Unrest

Shocking images of clashes between demonstrators and police in Hong Kong have been broadcast over the media over the last several months. The catalyst for these protests was a controversial extradition bill that would have allowed authorities to detain and extradite people in Hong Kong wanted in territories where Hong Kong does not have extradition agreements – including China. This bill was seen as undermining the autonomy of the territory and bringing Hong Kong further under China’s control.

Comparisons with the 2014 Umbrella Movement
Parallels have been drawn with the umbrella movement street protests in 2014, where demonstrators occupied several major junctions in the city, disrupting businesses. The 2014 protests were against proposed reforms to the Hong Kong electoral system which was seen as allowing China to pre-screen candidates for the Chief Executive of Hong Kong. The 2014 protests were largely student-led and did not receive support from the general population. In fact, there were many stories of arguments within families as pragmatic parents forbade their idealistic children from participating in the pro-democracy movement. While the youth are still largely involved in the current protests, there is evidence that they are now supported by the broader population. Where they differ is that the older folk prefer to voice their displeasure through peaceful marches, whereas some of the younger ones have adopted a more militant form of protest. 

The proposed extradition bill is the proverbial straw that broke the camel’s back, triggering this outpouring of pent-up unhappiness. The reasons are manifold – a combination of social, economic and political factors. Hong Kong was promised 50 years of semi-autonomy following the 1997 handover from the British. However, developments in recent years suggest that individual liberties are slowly being eroded, as China gradually increases its influence over the territory.

In addition, Hong Kong is losing a bit of its luster as a business center with the emergence of competing financial centers and ports in Shanghai and Shenzhen. What’s worse is Hong Kong has seen an influx of mainland Chinese who compete with locals for jobs, depressing wages. Despite these economic uncertainties, Hong Kong still has one of the most expensive housing markets in the world, suffering from an acute shortage of affordable public housing. With all these issues, it is no wonder then that Hong Kongers, especially the young, are despondent about their future.