The protests in Hong Kong have had a knock-on effect on the local economy Kyodo News/Getty ImagesInvestors have pulled $5 billion from Hong Kong investment funds since April after months of anti-government protests. The outflows, equivalent to 1.25 per cent of the territory’s GDP, were described as significant by the Bank of England in its latest financial stability report. “The protests, and their impact on the real economy, highlight political risk as a key vulnerability in Hong Kong,” it said. The Bank added that political tensions pose risks to British businesses given Hong Kong’s status as a financial centre, although the recent stress tests showed that UK banks, including HSBC and Standard Chartered, which are among the largest foreign lenders in the region, are well-equipped to deal with any prolonged downturn. “Through the 2019 stress test, major UK banks have demonstrated…

Source: The Times December 18, 2019 00:00 UTC