AsiaXPAT (Hong Kong) - John Greenwood, often referred to as the 'father of the HKD peg' has stated that the Hong Kong is in the process of losing its status as a secure global financial centre due to the serious violence and simmering unrest that has gripped HK for nearly 8 months.
Greenwood, who architected the HKD peg to the USD in the early 1980's, suggests that the never-ending HK protests and resulting economic instability has made investors very wary of the city's future and has resulted in a reduction in the amount of capital inflows into HK (and China).
Greenwood says that the USD funds are more likely to flow into other Asian markets that are deemed to be more stable.
Meanwhile the Hong Kong government continues to reject all demands for discussions on the HK protesters 5 demands and instead has introduced insignificant measures including HKD2 bus fares in a feeble attempt to appease the millions who insist on universal suffrage and an independent enquiry into HK police brutality.
The stand-off between the government and the people of Hong Kong is causing the city to sink even deeper into recession and will at some point reach a tipping point which may result in a
serious economic crisis.
https://finance.yahoo.com/news/hong-kong-dollar-no-longer-093000201.html