Stability key to securing upturn for Hong Kong economy

The disruptive demonstrations in the Hong Kong Special Administrative Region that are now in their 10th week are taking a heavy toll on its economy.

In the second quarter the SAR's economy grew only 0.6 percent, compared with the 4.6 percent increase in the same period last year. That the SAR's Purchasing Manager's Index, an indicator of the vitality of the economy, plummeted to a decade low of 43.8 in July means the impacts are structural.

The turmoil has also severely shaken investor confidence. The Hong Kong stock market fell by 2.68 percent in June and 8.8 percent in July, with the latter the biggest fall in seven months.