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Hong Kong’s Rich Get Richer as Economy Shrinks
The gap between Hong Kong’s rich and the rest of the population is widening as surging asset prices shield the wealthy from an economic contraction. The CHART OF THE DAY shows gauges of stock and home prices in the city have more than doubled since 2008 to record highs. While the median household income rose 25 percent in the period, lifted by the introduction of a minimum wage in 2011, the total increase was just 4 percentage points above the rate of inflation. The lower panel shows Hong Kong’s economy shrank in the second quarter compared with the previous three months. Rising asset prices have helped make Hong ... (full story)