Social Movement Effects on the Market Economy : The Impacts of Anti-Extradition Law Amendment Bill movement on Hang Seng Properties index

Sammanfattning: The aim of this thesis is to analyze the effects of political instability on the market performance. The Anti Extradition movement in Hong Kong will be the study object and its impact on the Hang Seng Properties Index will be tested. The market performance will be measured with the parameters market risk and risk premium. Two regression models will be built where the political event serve as dummy variables and categorized into relatively peaceful protest (PI1t), massive conflict (PI2t) and election period (EPt). The results indicate that all political events cause increased market fluctuation, except for EPt variable (in the risk premium model) which had a market stabilizing effect. The conclusion that the real estate market is sensitive to political turmoil is drawn.