Update | HSBC backtracks on Occupy Central as reason for downgrading Hong Kong’s outlook
Bank lowers its assessment of stock market prospects over fears about civil disobedience - but Occupy insists impact will be temporary
Hong Kong's biggest bank altered a report on why it downgraded the city's stock market prospects, after originally highlighting the risks posed to the city by Occupy Central.
The original version of the bank's flagship equity investment strategy report, penned by analysts and released yesterday, stated: "We reduce Hong Kong to 'underweight' on concerns about negative news flow. Occupy Central... could sour relations with China and may hurt the economy.
However, just hours later, and following criticism on Twitter and Weibo for bringing up the Occupy protests, the report was updated to suggest the residential market was the main reason for concern.
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The amended version read: "We reduce Hong Kong to 'underweight' on the risk of weak residential real estate prices, the slowdown in mainland tourist arrivals, the market's link to US interest rates (the Federal Reserve could raise rates next year) and weak earnings momentum.
"We also note recent concerns about negative news flow regarding the Occupy Central campaign."
A bank spokesman refused to comment on why the report was updated. It was understood that only the banks; clients have access to the document posted on the internet, while journalists were able to obtain it through the bank's media relations team.
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The original bleak assessment of the bank's fortunes came as leaders of the civil disobedience movement considered bringing forward to next month their plan to block streets in Central, with support from student groups who staged a rehearsal on Chater Road after the annual July 1 march.