Hong Kong Economy and Markets Squeezed Between China Crackdowns and U.S. Rate Hikes
• Hong Kong's economy and markets have struggled over the past year, with GDP below 2018 levels and stocks down over 25% recently
• The city's woes stem partly from its loss of autonomy and crackdowns by China, but also from following U.S. rate hikes due to the currency peg
• Financial services and property, pillars of HK's economy, have been hit hard by China's mainland crackdowns and rising rates
• HK is losing its role as a "super connector" between China and the world with mainlanders visiting less and spending less
• An easing of U.S. rates could provide upside for HK's markets, but its unique economic model faces challenges from both China and America