MTR Corp. Pays Heavy Price for Unrest in HK Amid Lack of Insurance Coverage

21 Oct 2019

MTR Corp. Pays Heavy Price for Unrest in HK Amid Lack of Insurance Coverage

. MTR Corp Ltd (HK:0066), Hong Kong’s subway operator, will probably have to pay for the bill for damages suffered over the past four months during the city’s political unrest. Credit-rating firm Moody’s Investors Service said in a report that the operator may not be fully covered by its insurance and that its credit profile has likely took a hit as a result.MTR was accused by anti-government protesters of being in lockstep with the government and police and saw its stations vandalized and its corporate image tarnished. More than half of the railway stations were severely damaged, and their services suspended during violent protests on Sunday. Over the weekend, police and protesters exchanged tear gas and petrol bombs while multiple Chinese banks and shops deemed to be pro-Beijing were trashed. It was estimated back in early September that MTR has suffered damages of HK$50 million. Share prices of the company last traded at HK$44.10 by 11:18 PM ET (03:18 GMT), falling about 10% since Hong Kong’s unrest began in early June.

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