Hong Kong's 'specialness' being eroded, zero growth plausible, says S&P

Hong Kong's long-term economic prospects faced risks from the deterioration in the US-China relationship, resulting in a decoupling of the US dollar and Chinese financial systems, S&P said

The erosion of Hong Kong's "specialness" and its rapidly aging population could see its trend growth more than halve over the next decade and even plunge to zero in a "plausible" downside scenario, rating agency S&P Global estimated on Monday.

Hong Kong's long-term economic prospects faced risks from the deterioration in the US-China relationship, resulting in a decoupling of the US dollar and Chinese financial systems, the agency said.

A second risk was an accelerated financial opening of mainland China that would lessen Hong Kong's role as a global financial centre.

"Hong Kong's specialness is being eroded," S&P said in a new report.