Los Angeles Times

Merchants losing patience

- By David Pierson david. pierson@ latimes. com

HONG KONG— If commerce is the lifeblood of this deal- making metropolis, Ben Pui was having none of it Saturday, idling behind his glass counter filled with exotic medicinal herbs.

“Business is down 90%,” said Pui, whose pharmacy is across from one of the most heated sites of Hong Kong’s protests, in the densely packed neighborho­od known as Mong Kok. “It’s just crazy. A lot of stores could close. The protesters aren’t being rational. They should go stay at the government offices.”

As demonstrat­ions for democratic reform reached their seventh day, Hong Kong’s business community was finding it increasing­ly hard to stomach the widespread disruption­s.

The Hang Seng Index saw a steep decline last week. Banks closed branches near demonstrat­ion sites. And luxury retailers were starved for mainland Chinese tourists, who have been prevented by nervous leaders in Beijing from visiting HongKong during one of the territory’s prime holiday seasons.

A Hong Kong- based economist at ANZ Banking Co., an Australian and New Zealand lender, estimated that sales at luxury stores were down 70% since the holiday started Oct. 1, amounting to a decline of $ 285 million.

The Hong Kong Federation of Restaurant­s and Related Trades estimated that business would drop 30% over the holiday, according to news reports.

High- end hotels near the primary protest sites on Hong Kong Island are also experienci­ng disruption­s. The Upper House, an ultratrend­y boutique hotel in the business district Admiralty, canceled its anniversar­y party Wednesday, deciding it was “prudent to have as fewpeople in the area as possible,” according to an email sent to guests.

On Friday, Hong Kong’s financial secretary, John Tsang, called for the demonstrat­ions to end, saying any prolonged unrest could result in “permanent damage” to the city’s economy.

That was of little consequenc­e to protesters in Mong Kok on Saturday, many of whom were still smarting from clashes a day earlier with their opposition, a sometime menacing band of middle- aged men who were in some cases shown to have ties to criminal gangs known as triads, according to police.

“I understand the inconvenie­nce this is causing the

‘ Business is down 90%. It’s just crazy. A lot of stores could close. The protesters aren’t being rational.’

— Ben Pui, whose pharmacy is across from a main protest site

shops, butwe’re trying toget a direct response from the government. Until they do that, we’ll stay here,” said MattsonYeu­ng, a21- year- old communicat­ions major at Hong Kong Baptist University, who wore a constructi­on helmet and stationed himself in a blocked intersecti­on ordinarily bustling with traffic.

On three corners of the intersecti­on were branches for Citibank, HSBC and Shanghai Commercial Bank. Allwere shuttered behind metal gates.

The unrest was sparked by the announceme­nt that Beijing would vet all candidates for chief executive in the elections of 2017 instead of giving residents greater say.

But the spillover of anger is also driven by long- standing grievances, not the least of which is the belief that Beijing is flooding the city with speculativ­e money that has caused housing prices to skyrocket and made it harder for many residents to get by.

Resentment toward mainlander­s has grown. In Mong Kok on Saturday, demonstrat­ors demanded that their hecklers produce Hong Kong identifica­tion cards, suspecting that many came from across the border.

Shouting between the two sides, punctuated by profanity, erupted throughout the day next to barricades erected by the protesters.

“You don’t have to work? You have money to blow,” an enraged middle- aged woman shouted to demonstrat­ors.

Fresh- faced students, many carrying neon colored backpacks, coached one another not to argue back and to avoid confrontat­ion.

“Just ignore them,” one student said, under a tarp where supplies such as bottledwat­er and bread vied for space with exhausted protesters. One sat amid the chaos and read her textbook: “Introducti­on to Financial Accounting.”

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