Hong Kong June Bankruptcies Surge 89 Percent

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Bankruptcy petitions in Hong Kong accelerated in June, surging 89 percent from a year earlier, government data showed on Friday, contrasting with other data suggesting the economy may be bottoming out, Reuters reported. Petitions also rose on a monthly basis after declining for the previous two months. Bankruptcy petitions totalled 1,619 last month, up from 857 a year ago and rising 14 percent from 1,417 in May, although monthly figures are not seasonally adjusted. The annual pace of increase was much faster than in May when petitions rose 54 percent from a year earlier. That indicates the economic situation remains challenging despite recent data showing exports shrinking at a slower pace and unemployment rising less sharply. Hong Kong's economy tipped into recession a year ago and the government has forecast it will contract by up to 6.5 percent this year, although economists expect it to improve in the second half. Read more.