BENGALURU • Hong Kong's role in global finance is intact, with little evidence to suggest recent protests and social unrest in the city have adversely impacted that role, global credit rating agency Fitch Ratings said yesterday.

However, the rating agency added that the prolonged protests are undermining perceptions that Hong Kong is a stable international business hub and that a weaker view of its governance could impact its credit rating directly.

The Chinese city has seen more than six months of anti-government demonstrations sparked by a controversial and now-withdrawn extradition Bill. The often violent protests have morphed into calls for greater democratic freedoms for the semi-autonomous former British colony.

In September, Fitch had downgraded Hong Kong's long-term foreign currency issuer default rating to AA from AA+, following months of protests.

Fitch said yesterday that while Hong Kong's short-term outlook continues to deteriorate, the medium-term prospects seem more positive. The economy has sunk into its first recession in a decade, with businesses under pressure from the protests and the protracted US-China trade war.

The rating agency added that the recent listing of Alibaba Group on the Hong Kong stock exchange reflects Hong Kong's role as the "flagship offshore financing centre" for Chinese companies.

Commenting on the recent United States legislation supporting Hong Kong protesters, Fitch said it was largely symbolic but shows that changing international perceptions of the city could have economic spillovers.

REUTERS