The signs of worsening economy in Hong Kong have now surfaced.

ANBOUND's scholars have been tracking the economy of Hong Kong and they are of the view that Hong Kong’s linked exchange-rate system might be facing the unprecedented challenge.

The linked exchange-rate system is an "anchor" that links Hong Kong’s economy with global economy, should this system becomes unsustainable due to internal factors (unlike the situation of 1997 Asian Financial Crisis), this might cause plunge in asset values.

This is the real, significant risk faced by Hong Kong.

In fact, this is also the real challenge faced by Hong Kong’s economy, the market and the governance.