China News Agency, Hong Kong, June 9 Question: Hong Kong's economy and people's livelihood hit hard on the first anniversary of the "revision storm"

  China News Agency reporter Zeng Ping

  The "revision storm" that began on June 9 last year has caused Hong Kong to be involved in a violent vortex, which has hit the economy and people's livelihood. The scene of the petrol bombs frightened the people who love Hong Kong, and discouraged investors who relied on Hong Kong's high-quality business environment. A more intuitive indicator is that Hong Kong's economy experienced negative growth for the first time in ten years.

Visitors to Hong Kong plunge, retail hotel industry bleak

  Social turmoil, the tourism industry bears the brunt. In the first half of last year, visitor arrivals continued the upward trend of the previous year, with a year-on-year increase of 13.9%. However, affected by the “revision storm”, visitor arrivals have turned sharply since July. In the second half of last year, visitors to Hong Kong fell by 39.1% year-on-year, and the number of visitors to Hong Kong fell by 14.2% throughout the year.

  The retail and hotel industries, which are closely related to tourists, are also affected. The year-on-year decline in the value of retail sales in Hong Kong has expanded to double digits since July last year, and hotel prices have generally fallen by about 50% compared with the first half of the year. On New Year's Eve, the highest room rate for a hotel with a night view of Victoria Harbour is 70%.

  The unemployment rate climbed from 2.8%, which was close to universal employment in the first half of last year, to 3.3% at the end of the year. Under the impact of the new coronary pneumonia, the unemployment rate in Hong Kong soared to 5.2% from February to April this year, a record high of more than a decade.

  Many employees in industries such as tourism, retail, and catering are forced to take unpaid leave. Famous brand shops in bustling neighborhoods and old-fashioned restaurants that people are familiar with have closed their doors or closed down.

  The Hong Kong economy rose slightly by 0.5% year-on-year in the first half of last year, but contracted by 1.2% for the whole year, marking the first annual decline since 2009.

  "If it weren't for the'revision incident', Hong Kong's economy would still grow at least slightly." Wang Chunxin, head of economic and policy research at BOC Hong Kong, estimated that the "revision incident" caused a 2.7% impact on the Hong Kong economy last year and it was Hong Kong's economy that fell into recession Main cause.

The ranking of business environment affected by the impact rating slipped

  Hong Kong has always been favored by global investors for its good rule of law, judicial independence, business efficiency, freedom of information and other factors. However, under the circumstance of violence and widespread dissemination, investors’ confidence in Hong Kong is inevitably weakened.

  The American Heritage Foundation released the 2020 Index of Economic Freedom in March this year, and Hong Kong has lost its throne as the "world's most free economy" for 25 consecutive years. The law and order problems caused by social unrest have affected Hong Kong’s “freedom of investment” rating, leading to a lower overall rating of Singapore than Singapore, ranking second.

  A survey report released by the human resources consulting company ECA International in February this year revealed that Hong Kong's ranking of the most suitable place for expatriate employees to drop off in East Asia dropped by 52 places to 93rd place, surpassed by major Asian cities such as Seoul and Taipei. The agency described the decline in Hong Kong’s ranking as “unprecedented”, mainly due to the continued tension in the social and political situation.

  Rating agencies Moody's and Fitch have also lowered their ratings on Hong Kong. All of the above are typical examples of the "revision storm" affecting the confidence of the outside world in Hong Kong. Wang Chunxin said that many rich people have set up family offices in Hong Kong to carry out global asset allocation. The decline in investment confidence caused by the "revision storm" also has an impact on Hong Kong's investment and financial management. And this kind of confidence effect is usually not short-term, but medium to long-term. If the social turmoil continues, the subsequent impact may expand.

Society severely tears residents' emotional depression

  The violent demonstrations made the streets of Hong Kong full of sight. The MTR stations passing by every day may be smashed beyond recognition, and they may be beaten on the streets just because of different political opinions. Family members may avoid each other because of their different positions. The daily lives of Hong Kong residents are becoming more and more trembling and fragile. For a long time, inner depression has accumulated.

  The sudden new coronary pneumonia epidemic stopped the violent demonstrations temporarily, but after the epidemic slowed down, the violence showed signs of resurgence. The National People's Congress passed Hong Kong-related national security legislative decisions, the purpose of which is to eliminate the seeds of "violence" in Hong Kong. Hong Kong citizens, tired of violence, saw the hope of bringing Hong Kong's economy, people's livelihood and the rule of law back on track.

  It has been one year since the "revision of the storm". I believe that after the chaos and the epidemic, it is the common wish of all people who love Hong Kong to look forward to the restoration of harmony and tranquility in society. (Finish)