2014-09-08
HKT 18:41
Ratings agency, Moody's, has called Beijing's decision on Hong Kong's political framework a "credit negative" for the SAR.
It says a prolonged period of demonstrations would likely negatively affect economic growth, indirectly affecting government finance, investor confidence and capital flows.
The observation is similar to that of HSBC and Barclays which had expressed concern about the potential effects of unrest in Hong Kong on the markets.
But Moody's also noted that Hong Kong has strong buffers in place to limit any fallout from money leaving the territory.
Therefore, it believes that the credit implications of the current political situation, while negative, are not yet significant.
http://m.rthk.hk/news/20140908/1035686.htm
