RAISE COUNTRY RISK FOR HONG KONG

The ongoing democracy protests in Hong Kong have had an obvious impact upon its economy, and yesterday, China announced that it has stopped issuing visas to mainland tour groups who have applied to visit the city. Tourism is a major source of income there, and you should consider this step in calculating Country Risk. Additionally, the announcement, from the protesters, that they intend to occupy government offices and buildings, should the government-appointed leader not resign, could result in violence, disruption of the financial services industry, and a harsh response from law enforcement.

All of this is extremely disturbing from an economic point of view; until and unless the protests subside, your assessment of Country Risk for Hong Kong should be elevated.