Hong Kong unrest and implications for the Hang Seng Index

Research output: Contribution to journalArticlepeer-review

Abstract

With the September 2014 ‘Umbrella Revolution’ in Hong Kong, China faced one of the biggest political challenges since the Tiananmen Square events. Beijing’s proposed electoral reform was perceived as a direct attack to democracy, and the ensuing protest triggered concerns amid local and international investors; the financial sector took the hardest hit, with stocks of companies exposed to the Hong Kong market facing significant losses. Volatility continued to increase to a seven-month high over worries that the student blockade in Hong Kong’s streets could drag on for longer than expected. The econometric-based analysis in this paper looks at the implications of the protest and its spillover effect on the Hang Seng Index with a focus on sectoral performance. The ultimate objective is to gain a better understanding of the impact of the protests on different stocks and sectors with the goal of identifying market vulnerability and potential volatility patterns.

Original languageEnglish
Pages (from-to)82-96
Number of pages15
JournalJournal of the Asia Pacific Economy
Volume24
Issue number1
DOIs
Publication statusPublished - 2 Jan 2019
Externally publishedYes

Keywords

  • Hang Seng Index
  • Hong Kong political unrest
  • spillover effects and growth
  • volatility

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