Hong Kong's reputation as a global business hub was dealt a fresh blow Monday after Moody's downgraded a key rating, blaming a lack of government response to months of popular protests and China's increased influence over the city's institutions.

<a href="https://www.wionews.com/world/hong-kong-police-officers-were-beaten-by-protesters-in-rally-275261">Also Read:&nbsp;Protesters rally, thrash police officers in Hong Kong</a>

The rating downgrade is a major blow to Hong Kong's pro-Beijing leader Carrie Lam, who has struggled to end more than seven months of huge and often violent pro-democracy protests.

It also reflects growing concern within the business community that the institutional features that give Hong Kong more political and economic autonomy are weakening under pressure from the authoritarian mainland.

In a statement explaining its decision to downgrade the long-term issuer and senior unsecured ratings one notch to Aa3, Moody's delivered a blunt assessment of the government's response to the protests.

"The absence of tangible plans to address either the political or economic and social concerns of the Hong Kong population that have come to the fore in the past nine months may reflect weaker inherent institutional capacity than Moody's had previously assessed," the New York-based credit rating agency said.

It described the government's response to demands for greater political freedoms -- and sky-high living costs -- as "notably slow, tentative and inconclusive".

"It may also point to more significant constraints on the autonomy of Hong Kong's institutions than previously thought," the agency added, in a nod to pressure from Beijing.

Months of political unrest has upended Hong Kong's reputation for stability while the protests present the most severe challenge to Beijing's rule since the former British colony's 1997 handover to China.

Millions of pro-democracy supporters have taken to Hong Kong's streets with clashes between hardcore protesters and police frequently breaking out.

Combined with the fallout of the US-China trade war, the protests have slammed the tourist and retail sectors and helped tip Hong Kong into a recession.

The protests were initially sparked by a proposed law allowing extraditions to the authoritarian mainland where the opaque judicial system answers to the Communist Party.

Opponents saw it as the latest move by Beijing to chip away at the city's unique freedoms, such as its independent judicial system.

But as Beijing and Lam dug in, the movement morphed into a broader campaign calling for democratic reforms and police accountability.

The extradition law was eventually abandoned, but Beijing has refused further concessions and thrown its full support behind Lam.

Among the key demands of the movement are an inquiry into the police, an amnesty for the thousands arrested and fully free elections.

Moody's decision comes four months after Fitch downgraded the city's sovereign rating, citing ongoing protests and uncertainty caused by closer integration with the Chinese mainland.

It was the first time the agency had downgraded Hong Kong since 1995 when fears about the city's future following its handover to China were at their peak.

Moody's changed Hong Kong's outlook from stable to negative in September after Fitch's move but did not follow suit on a ratings downgrade.

It the statement announcing Monday's downgrade, Moody's moved Hong Kong's outlook back to stable, noting the city's large fiscal reserves, minimal debt burden and ample foreign exchange reserves.

But it warned "closer institutional integration between Hong Kong and China" could contribute to further downgrades in the future.

Hong Kong's reputation as a global business hub was dealt a fresh blow Monday after Moody's downgraded a key rating, blaming a lack of government response to months of popular protests and China's increased influence over the city's institutions.

Hong Kong's reputation as a global business hub was dealt a fresh blow Monday after Moody's downgraded a key rating, blaming a lack of government response to months of popular protests and China's increased influence over the city's institutions. Also Read: Protesters rally, thrash police officers in Hong Kong The rating downgrade is a major blow to Hong Kong's pro-Beijing leader Carrie Lam, who has struggled to end more than seven months of huge and often violent pro-democracy protests. It also reflects growing concern within the business community that the institutional features that give Hong Kong more political and economic autonomy are weakening under pressure from the authoritarian mainland. In a statement explaining its decision to downgrade the long-term issuer and senior unsecured ratings one notch to Aa3, Moody's delivered a blunt assessment of the government's response to the protests. "The absence of tangible plans to address either the political or economic and social concerns of the Hong Kong population that have come to the fore in the past nine months may reflect weaker inherent institutional capacity than Moody's had previously assessed," the New York-based credit rating agency said. It described the government's response to demands for greater political freedoms -- and sky-high living costs -- as "notably slow, tentative and inconclusive". "It may also point to more significant constraints on the autonomy of Hong Kong's institutions than previously thought," the agency added, in a nod to pressure from Beijing. Months of political unrest has upended Hong Kong's reputation for stability while the protests present the most severe challenge to Beijing's rule since the former British colony's 1997 handover to China. Millions of pro-democracy supporters have taken to Hong Kong's streets with clashes between hardcore protesters and police frequently breaking out. Combined with the fallout of the US-China trade war, the protests have slammed the tourist and retail sectors and helped tip Hong Kong into a recession. The protests were initially sparked by a proposed law allowing extraditions to the authoritarian mainland where the opaque judicial system answers to the Communist Party. Opponents saw it as the latest move by Beijing to chip away at the city's unique freedoms, such as its independent judicial system. But as Beijing and Lam dug in, the movement morphed into a broader campaign calling for democratic reforms and police accountability. The extradition law was eventually abandoned, but Beijing has refused further concessions and thrown its full support behind Lam. Among the key demands of the movement are an inquiry into the police, an amnesty for the thousands arrested and fully free elections. Moody's decision comes four months after Fitch downgraded the city's sovereign rating, citing ongoing protests and uncertainty caused by closer integration with the Chinese mainland. It was the first time the agency had downgraded Hong Kong since 1995 when fears about the city's future following its handover to China were at their peak. Moody's changed Hong Kong's outlook from stable to negative in September after Fitch's move but did not follow suit on a ratings downgrade. It the statement announcing Monday's downgrade, Moody's moved Hong Kong's outlook back to stable, noting the city's large fiscal reserves, minimal debt burden and ample foreign exchange reserves. But it warned "closer institutional integration between Hong Kong and China" could contribute to further downgrades in the future.

'No tangible plans': Moody's downgrades protest-hit Hong Kong

A study conducted by The Lancet indicates that the mental health of the citizens of Hong Kong has been adversely affected by the present turmoil in the country.

Hong Kong has been reeling in <a href="https://www.wionews.com/world/hong-kong-university-protest-fizzling-out-as-over-1000-arrested-by-authorities-263246">clashes</a> between the law enforcement agencies and the protestors for over seven months since&nbsp;June last year.

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NEW—The ongoing social unrest in Hong Kong may be affecting the mental health of the general adult population—potentially leading to substantial increases in demand for mental and psychosocial support services: finding from a 10-year observational study <a href="https://t.co/mpZ1TAM772">https://t.co/mpZ1TAM772</a> <a href="https://t.co/tdqXtOquts">pic.twitter.com/tdqXtOquts</a>
— The Lancet (@TheLancet) <a href="https://twitter.com/TheLancet/status/1215416711618363392?ref_src=twsrc%5Etfw">January 9, 2020</a></blockquote>
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The head injuries suffered by the civilian population from batons and rubber bullets along with the population's exposure to tear gas, toxic by-products of petrol bombs and burned tyres and irritants in water cannons have become&nbsp;a cause of concern for the doctors, according to the Lancet study.

It has&nbsp;most likely caused damage to the mental health of the people of <a href="https://www.wionews.com/east-asia/police-shoot-hong-kong-protester-in-chest-during-clashes-253085">Hong Kong</a>, the study found.

The population-based prospective and the most extensive research was conducted on adult participants aged 18 years or older who were assessed at nine different time points from 2009.

Probable depression and suspected post-traumatic stress disorder (PTSD) due to direct exposure to traumatic events because of the ongoing social unrest were assessed in the study.

Probable depression was estimated at 11&nbsp;per cent of the participants in 2019, compared with 1.9 per cent from 2009 to 2014.&nbsp;

This is five-times increase&nbsp;in comparison to the social unrest in 2017 during which it was 6.5 per cent.

Prevalence of suspected PTSD in 2019 was estimated to be 12.8 per cent and almost 32 per cent in Sept-Nov&nbsp;last year&nbsp;alone.

This is approximately six times higher in comparison to 5 per cent&nbsp;briefly after the "Occupy&nbsp;Central" movement in March 2015.&nbsp;

One in out of every five Hong Kong resident surveyed last year&nbsp;reported probable "major depression"&nbsp;or "suspected PTSD" which is nearly one-third of the citizens of the country who have reported the symptoms of Post-traumatic disorder, according to the report.

A study conducted by The Lancet indicates that the mental health of the citizens of Hong Kong has been adversely affected by the present turmoil in the country. Hong Kong has been reeling in clashes between the law enforcement agencies and the protestors for over seven months since June last year.

A study conducted by The Lancet indicates that the mental health of the citizens of Hong Kong has been adversely affected by the present turmoil in the country. Hong Kong has been reeling in clashes between the law enforcement agencies and the protestors for over seven months since June last year. NEW—The ongoing social unrest in Hong Kong may be affecting the mental health of the general adult population—potentially leading to substantial increases in demand for mental and psychosocial support services: finding from a 10-year observational study https://t.co/mpZ1TAM772 pic.twitter.com/tdqXtOquts — The Lancet (@TheLancet) January 9, 2020 × The head injuries suffered by the civilian population from batons and rubber bullets along with the population's exposure to tear gas, toxic by-products of petrol bombs and burned tyres and irritants in water cannons have become a cause of concern for the doctors, according to the Lancet study. It has most likely caused damage to the mental health of the people of Hong Kong, the study found. The population-based prospective and the most extensive research was conducted on adult participants aged 18 years or older who were assessed at nine different time points from 2009. Probable depression and suspected post-traumatic stress disorder (PTSD) due to direct exposure to traumatic events because of the ongoing social unrest were assessed in the study. Probable depression was estimated at 11 per cent of the participants in 2019, compared with 1.9 per cent from 2009 to 2014. This is five-times increase in comparison to the social unrest in 2017 during which it was 6.5 per cent. Prevalence of suspected PTSD in 2019 was estimated to be 12.8 per cent and almost 32 per cent in Sept-Nov last year alone. This is approximately six times higher in comparison to 5 per cent briefly after the "Occupy Central" movement in March 2015. One in out of every five Hong Kong resident surveyed last year reported probable "major depression" or "suspected PTSD" which is nearly one-third of the citizens of the country who have reported the symptoms of Post-traumatic disorder, according to the report.

After violence, one-third of Hong Kong citizens reported PTSD symptoms: Lancet study

Riot police in Hong Kong fired tear gas in an effort to disperse protesters on Tuesday (December 24), who were staging anti-government rallies in Tsim Sha Tsui district.

Hong Kong riot police fire tear gas as Christmas Eve protests intensify