Hong Kong Protest Ranks Thin as Negotiations Bring Calm to City
Comment of the Day

October 06 2014

Commentary by Eoin Treacy

Hong Kong Protest Ranks Thin as Negotiations Bring Calm to City

This article by Alfred Liu, Weiyi Lim and Clement Tan for Bloomberg may be of interest to subscribers. Here is a section: 

“I’m sure people will thin out because people get worn out,” Next Media Ltd. Chairman Jimmy Lai, publisher of the Hong Kong newspaper that’s most-critical of Chinese rule and an advocate of the protesters, said in an interview. “I’m sure the government in the talks will promise something that will appease people temporarily. But when promises are broken, people will come back.”

?Student leaders met with government officials yesterday to map out further talks with the city’s second-highest ranking official, Carrie Lam.

The protests were triggered by China’s decision that candidates for chief executive in the 2017 elections be vetted by a committee. Pro-democracy groups say that will guarantee the candidates’ obedience to China. They are seeking a more open system, as well as the resignation of Chief Executive Leung Chun-ying.

Eoin Treacy's view

It can only be described as good news that the tense situation in Hong Kong is easing. For a city built on commerce, the protests have been bad for business especially during a key annual holiday. As people get back to work and a heavy-handed breakup avoided. investors are likely to begin to refocus on the opening of the Hong Kong - Shanghai stock market connection later this month. 

The Hang Seng Index found at least short-term support Friday in the region of the 200-day MA to hold the progression of higher reaction lows evident since late 2011. Some additional steadying appears likely and a sustained move below last week’s low near 23,000 will be required to question medium-term scope for continued higher to lateral ranging.  


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