Hong Kong shares dropped by 3 % due to the city braces for disruption
Reportedly, on Monday, the shares of Hong Kong declined because businesses supported for biggest disturbances among a general strike which is aimed at bringing the city to a pause. In the morning trade, the benchmark Hang Seng index decreased around 2.9 percent.
The embattled chief executive of the Hong Kong, Carrie Lam said on Monday that, “As per my point of view, the city was on the path of a very dangerous situation.” The unpleasant environment in the Hong Kong started since early June when the protestors took to the streets in order to oppose the expulsion bill proposal, which has been suspended, but not fully withdrawn.
As per the recent buzz, the Monday’s strike followed by the another weekend of the aggressive protests. Over 100 flights have already been cancelled, while the rail operator declared the suspension of services between parts of Hong Kong. On the other hand, the shares of Cathay Pacific, which is the main airline of Hong Kong were dropped down by nearly 2.95 per cent.
As per the reports, other Asian markets also traded lesser shares among big concerns over the trade war between Washington and Beijing.
On Thursday, the American president Donald Trump said that the United States of America is putting 10 per cent of tariffs on another $300 billion which is worth of goods of China commencing from September 1.
The analysts at J.P Morgan wrote that, “We are expecting the policy response in China which is to be calibrated to the effect of the tariffs, that is also considered to be the risks to financial stability. “We also expect that the China will step up policy of fiscal and monetary support but in a positive manner that ultimately avoids financial imbalances.”, said by the analysts.