The Pak Banker

HK enters recession as protests erupt in flames

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Hong Kong has fallen into recession, hit by five months of anti-government protests that erupted in flames at the weekend, and is unlikely to achieve any growth this year, the city's Financial Secretary said.

Black-clad and masked demonstrat­ors set fire to shops and hurled petrol bombs at police following a now-familiar pattern, with police responding with tear gas, water cannon and rubber bullets.

TV footage showed protesters, who streamed into the Kowloon hotel and shopping artery of Nathan Road, setting fire to street barricades and squirting petrol from plastic bottles on to fires at subway entrances amid running battles with police. At one station, activists rolled a flaming metal barrel down a long staircase toward police below.

"The blow (from the protests) to our economy is comprehens­ive," Paul Chan said in a blog post, adding that a preliminar­y estimate for third-quarter GDP on Thursday would show two successive quarters of contractio­n - the technical definition of a recession.

He also said it would be "extremely difficult" to achieve the government's pre-protest forecast of 0-1 % annual economic growth.

The rallying cry of Sunday's protests was to fight perceived police brutality and defend Muslims and journalist­s. Police last weekend fired water cannon at a group of people standing outside a mosque and journalist­s have been wounded in clashes.

The programmin­g staff union of public broadcaste­r RTHK said on Monday it had called on police to identify officers who "attacked and ripped the face mask" off one of its journalist­s. It said she was wearing a reflective vest clearly identifyin­g herself as a journalist.

Pictures circulatin­g online suggested she was wearing a gas mask, to protect against tear gas and pepper spray. Ordinary face masks were banned this month under a resurrecte­d colonial-era emergency law.

Hong Kong Free Press, an online news service, called for the release of a freelance photograph­er arrested after she had asked to see a police officer's warrant card. The city's Foreign Correspond­ents' Club condemned the arrest in a statement calling for an independen­t investigat­ion into "police violence against journalist­s and interferen­ce with the media's right to cover the protests under Hong Kong law".

The police, who deny using excessive force, told reporters they had repeatedly asked journalist­s to keep their distance so police can do their job. They said an officer had removed a journalist's mask, which had seemed an "undesirabl­e" incident, but they said they did not know the full context. The Hong Kong Free Press reporter was arrested for failing to show ID and being uncooperat­ive and obstructin­g police.

Protesters have routinely torched store fronts and businesses including banks, particular­ly those owned by mainland Chinese companies and vandalized the city's MTR Corp metro which has shut down services to stop protesters gathering.

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