Mumbai: Hong Kong has witnessed an economic slump as the citizen came on streets protesting against the current government and demanding democracy in the city. After almost a week’s slump, the shares of Cathay Airlines opened 7.4% higher on Wednesday.
According to Reuters the jump in the shares is considered as a consequence of its top shareholder lambasting the protestors. After the relief rally, Hong Kong reopened the airport and the airlines. The airline’s top shareholder had also claimed that he would follow the aviation rules and regulations made by China. The shareholder is totally in support of what the government of Hong Kong has planned.
Cathay’s shares fell to a 10-year-low when the Chinese government demanded to suspend all the airline personnel who directly or indirectly support or are involved in the protests in Hong Kong from staffing flights into its airspace. The top shareholder and manager of Cathay, Swire Pacific limited placed advertisements on Wednesday in Hong Kong Economic Journal in support of the Hong Kong government and its endeavours to restore law and order.
“We condemn all illegal activities and violent behaviours which seriously undermine the fundamental principle of ‘One country two systems’ as enshrined in the basic law,” said the Swire Pacific in a statement on Tuesday.
The Hong Kong’s protest had brought about an economic slowdown, as it has brought the total retail, travel and tourism industry to a standstill. According to the reports, if the protests continued for more than a month, Hong Kongers could face a crisis worse than the recession.