Hong Kong August Bankruptcies Rise 33 Percent Year Over Year

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Bankruptcy petitions in Hong Kong rose by 33 percent in August from a year earlier, government data showed on Friday, as companies continued to grapple with weak business conditions, Reuters reported. However, petitions fell from the previous month for a third straight month. Bankruptcy petitions totalled 1,099 in August month, up from 824 a year earlier but down 25 percent from 1,475 petitions in July, although monthly figures are not seasonally adjusted. The annual pace of increase was slightly slower than in July when petitions rose 36 percent from a year earlier. That indicates the economic situation remains challenging despite recent data showing exports shrinking at a slower pace and the unemployment rate stabilising. Hong Kong in the second quarter pulled out of its worst recession since the Asian financial crisis a decade ago but recovery is likely to be slow as global demand remains weak, analysts say. Read more.