Hong Kong is in the middle of a recession, according to renowned China expert Andy Xie, as new data shows the economy is starting to feel the pain of ongoing protests.
"Retail sales are plummeting, the property market has very few transactions and the little action in the stock market has fizzled out. I don't see where the growth comes from," Xie told CNBC this week.
Xie, the former head of the Morgan Stanley's Asia-Pacific economics team, is known as one of the few economists who correctly predicted past economic bubbles, including the 1997 Asian Financial Crisis and the U.S. subprime crash.
His comments follow Hong Kong Financial Secretary John Tsang Chun-wah's warning this week that 2014 economic growth could miss revised government forecasts of 2.2 percent. The economy grew 2.7 percent in the July-September quarter, beating estimates for a 1.8 percent rise.
Retail sales weaken
Data this week showed retail sales slowed sharply in October, rising 1.4 percent on year compared with a 4.8 percent increase in September as the city's pro-democracy movement enters its third month.