Hong Kong is one of the premier destinations in Asia. This former British colony is a popular business hub and tourist destination by both local and foreign visitors. With its lively night market and street stalls lining its busy city streets, Hong Kong life is alive and booming. It is a vibrant city full of exciting things to do. You will never run out of things to do and discover, whether it is to learn more about its history, culture, and famous tourist attractions, this tiny little hub is a delicate balance of Asian and Western culture, hence earning itself the title where “East meets West.”
But even with its strong Western influence, Hong Kong managed to maintain its local Chinese roots despite their fast and modern lifestyle. But more than that, Hong Kong is known as the leading financial center in Asia. Most major banks have offshore offices here aside from the Hong Kong currency being one of the most traded currencies worldwide. Moreover, the Hong Kong port is one of the largest and busiest in the world. Those are just some of the juicy facts about this most sought after destination in Asia but with economies suffering today, is the magic still alive in Hong Kong or is it just but a shadow of its former self?
Hong Kong stocks closed at a one-month low after posting their biggest percentage drop in four months, as investors returning from their holiday break had their first chance to react to escalating tensions over North Korea.
Sentiment was also hurt by deepening worries over the sustainability ofChina’s economic recovery, with financial and resource shares leading the market decline.
The Hang Seng index fell 1.4 percent, to 23,924.54, while theChina Enterprises Index lost 1.6 percent to 10,043.52 points.
FollowingNorth Korea’s failed missile launch on Sunday, tensions have escalated amid concerns that the isolated state may soon test another nuclear bomb or missile.
Shares fell across the board.
Like any other nation in the world, Hong Kong’s economy is likewise suffering. Businesses can feel the threat of “imported inflation” among many other things. Even the economists brace for a tough year in Hong Kong this 2017 as the slowing private consumption, pressure from weak exports and a slumping property market continues to threat this city-state’s struggling economy. Even the happiest place on earth is not immune to this slump.
Walt Disney has agreed to inject an extra HK$350 million into its Hong Kong theme park’s six-year expansion plan and waive part of its management fees for two years after renewed public outcry over the deal’s “unequal” financing.
The concession came after loss-making Hong Kong Disneyland sought approval of a HK$10.9 billion facelift project in the Legislative Council last year – with more than half the bill to be footed by taxpayers. It cited fierce regional competition and dwindling mainland visitor numbers.
Some lawmakers earlier vowed to veto the funding application if the government – the park’s largest shareholder – failed to renegotiate a better deal with the American media giant. Questions arose as to whether the newest concessions were significant enough to benefit the city.
While the future does not look that bright and promising to everyone in Hong Kong, they are not the only one suffering. Other economies are in a slump too and many global brands are likewise closing stores all over the world. The rise of e-commerce may be partly to blame but we can expect a rise in the unemployed once this trend persists. So, it is not so bad in Hong Kong after all. The magic may not be as bright and blinding as it was once in the past but there is still a glimmer of hope that it will come back to its former glory if Hong Kong can just manage to keep its act together until that time comes.