TY - JOUR
T1 - Hong Kong unrest and implications for the Hang Seng Index
AU - Morales, Lucía
AU - Andreosso-O’Callaghan, Bernadette
N1 - Publisher Copyright:
© 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2019/1/2
Y1 - 2019/1/2
N2 - 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.
AB - 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.
KW - Hang Seng Index
KW - Hong Kong political unrest
KW - spillover effects and growth
KW - volatility
UR - http://www.scopus.com/inward/record.url?scp=85053397943&partnerID=8YFLogxK
U2 - 10.1080/13547860.2018.1503766
DO - 10.1080/13547860.2018.1503766
M3 - Article
AN - SCOPUS:85053397943
SN - 1354-7860
VL - 24
SP - 82
EP - 96
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
IS - 1
ER -