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Hong Kong chief formally withdraws extradition bill in bid to calm protesters

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Hong Kong chief formally withdraws extradition bill in bid to calm protesters

Hong Kong Chief Executive Carrie Lam said Sept. 4 that the government is formally withdrawing a bill that would have allowed the extradition of individuals to mainland China from the city in a bid to calm the months of local protests.

Hong Kong's benchmark Hang Seng Index rose nearly 4% following news published ahead of Lam's announcement in The South China Morning Post that a formal withdrawal was imminent, citing unnamed sources.

The extradition bill, proposed by the Hong Kong government in February, triggered protests across the city since June. Although Lam said in a June 15 press briefing that the Hong Kong government suspended the bill's legislative procedures and that the bill was "dead" about a month later, the protests continued.

Protesters have called for a formal withdrawal of the bill, alongside other demands including full democratic elections and an independent inquiry into how the police have handled the protests, according to a Reuters on Sept. 3.

In a televised address after local market close, Lam on Sept. 4 said the government is formally withdrawing the bill to "completely address the anxiety of the public."

"After more than two months of conflicts because of the bill, we have all come to realize that the tension we are facing now reflects the political, economic and social issues that have been buried deep for a long time, such as housing and land supply, income inequality, social justice, opportunities for the young generation as well as public participation in policymaking," she said.

Demonstrations had been largely peaceful until recent weeks when clashes between protesters and the police intensified across the city, including at the airport and subway.

The political uncertainty has hit the city's economy, already under pressure from China's slowing economy and lingering trade tensions between Beijing and Washington.

Alibaba Group Holding Ltd. reportedly postponed its August listing in Hong Kong, which was aiming to raise up to $15 billion, due to the unrest, Reuters reported Aug. 21, citing unnamed sources. At least three healthcare companies have also delayed or canceled plans to list on the Hong Kong stock exchange in the five months to mid-August.

Retail sales in Hong Kong fell 11.4% by value in July from a year earlier, with the luxury category was the hardest hit as fewer tourists visited the city.

Hong Kong's flagship carrier Cathay Pacific Airways Ltd. said Sept. 4 that John Solsar is retiring and has resigned as chairman of the board and executive director. The company, whose CEO Rupert Hogg quit in August after some staff were found to have participated in the protests, recently warned of a "significant impact" on its earnings in August and beyond, citing the protests for affecting travel demand.