Letters | Coronavirus is a twin crisis: why Hong Kong’s Carrie Lam must match the West in economic stimulus packages

This is worse that the dotcom crash, 9/11, and the 2008 financial crisis combined. No government will be remembered for doing too much at this time

Immediate access to capital will help us fight this financial infection and restore confidence in Hong Kong

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A storefront in Tsim Sha Tsui on March 18. Businesses in Hong Kong have been badly hit, first by months of protests then by the coronavirus outbreak. Photo: Nora Tam

Published: 7:40am, 27 Mar 2020Updated: 7:40am, 27 Mar 2020

Dear Carrie Lam,

We are dealing with two viruses: a viral infection and a financial infection. Both must be addressed concurrently. The latter will have a long-term effect on financial and mental health for generations to come.

If the stock market is an indicator, the average investor lost up to 50 per cent of their wealth in the last 30 days. Consumer confidence is at an all-time low. The United States has seen a massive increase in daily coronavirus cases and in 48 hours is tracking to surpass China. But, that is not the only problem we face.

Massive lay-offs in travel, hospitality, and restaurants are already happening. If the 2008 global financial crisis was a heart attack, the coronavirus crash could become a full body seizure.

Many companies are likely to go bankrupt. Small to mid-sized start-ups and businesses will be the biggest victims in the short term. This will have a circular effect on the cost of living.

Real estate is likely to take the next hit. ‬ ‪Mental health is going to be a huge problem during this time: with the upcoming financial distress putting the suicide-prone at special risk.

.css-sioo19{color:#c79a00;}Letters | Coronavirus is a twin crisis: why Hong Kong’s Carrie Lam must match the West in economic stimulus packages

Letters | Coronavirus is a twin crisis: why Hong Kong’s Carrie Lam must match the West in economic stimulus packages