Hong Kong and Asia are still suffering from Brexit: "a new era of great uncertainty"

Analysts speak of "economic chaos" worse than the 2008 crisis. This morning the Pound fell more than 2%. Financial stocks linked to London still negative. At the China's central bank think that it will take 5-10 years to get over the bumps. Indian Manager: Just a temporary reaction.


Hong Kong (AsiaNews) - This morning, the Hong Kong stock market still gives negative signals because of Brexit, the exit of Britain from the European Union and the single market. Analysts say the decision taken in the UK will create very large imbalances in the world economy, opening "a new era of great uncertainty."

financial services related to London are the most influenced by the Brexit effect. This morning stocks of the Hong Kong and Shanghai Bank (HSBC) lost 1.37%; Standard Chartered 1.04 and Prudential 3.6%. Meanwhile, in the morning, the pound has still lost 2% after the thud of 12% three days ago.

The main concern is that the uncertainty created by the British decision could continues to have effect for a long time. Lou Jiwei, China's Ministry of Finance said that the Brexit could create "repercussions and fallout" for the next five to 10 years.

Huang Yiping, a member of the Monetary Policy Committee of the Chinese central bank, said that there are signs of a "reversal of globalization", that will bring "very bad" time for the planet.

But according to Mahinda Anand, president of the Mahindra Group, the markets have "reacted too much", as if there had been "a tsunami ... My hunch is that you're going to see a fair amount of recovery in markets worldwide”.

The most pessimistic seems to be David Brown, head of the New View Economics that in an article published today in the South China Morning Post speaks of a " new age of deep uncertainty " caused by Brexit. According to the analyst the British move has the power to " to throw the world into even bigger economic chaos and disorder than the 2008 global financial crisis".

According to him, the reasons for pessimism are:

1. Central banks are now short of proposals and solutions, having played all the cards: Zero interest rates, creative monetary engineering and lashings of QE cash.

2. In addition to the height of the global debt, and the cooling of the Chinese economy, there are evidences of impotence among the supra-national organizations such as the UN, the International Monetary Fund, the World Bank, the G7, etc. ... unable to make any difference.

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