Oxfam is an international confederation of 21 independent affiliates “that fights inequality to end poverty and injustice.” In September, Oxfam Hong Kong released its ‘Hong Kong Poverty Report 2023,’ analyzing government data from 2019-2023. It found that the overall poverty rate in Hong Kong reached 20% in early 2023, affecting over 1.36 million people. Comparing pre- and post-pandemic median monthly incomes, the poorest households now earn 57.7 times less than the richest, up from a ratio of 34.3 in 2019. This shows that, while society is returning to normal in the wake of the COVID-19 pandemic, economic recovery remains polarized between high- and low-income families.

The median monthly income for the poorest 10% of households dropped by over one-third to HK$2,300. In contrast, the richest 10% of households grew by more than 10% to HK$132,600. The median household income for Hong Kong only increased 1.7%.

Nearly 210,000 employed Hongkongers still live in poverty, mostly working in retail and food services. Over 40% of Hong Kong’s unemployed live in poverty. Inactive individuals in poverty exceeded 1.1 million, increasing 10.6% since 2019.

Director Kalina Tsang of Oxfam Hong Kong urged the government to adjust the city’s minimum wage, support grassroots employment, aid subdivided flat households, collaborate with businesses and NGOs on social innovation, and improve childcare. She said that, following the pandemic, wealth inequality has seriously worsened and slow recovery among poor families is alarming. Oxfam believes Hong Kong is facing structural changes that make poverty more complex. It has called on the government to narrow the wealth gap and improve conditions for low-income workers post-pandemic.

Source: Oxfam Hong Kong, September 19, 2023
https://www.oxfam.org.hk/en/news-and-publication/gaping-wealth-gap-leaves-hong-kong-s-poorest-making-57-7-times-less-than-richest-while-struggling-to-recover-post-pandemic

Lawyers specializing in divorce cases in China say the recent housing market downturn is making couples more hesitant to divorce. The number of divorces in China has declined for three straight years, with lawyers attributing this trend partly to difficulties dividing property amid unstable housing prices.

According to mainland-Chinese media, divorce lawyer Liu Shengfei says clients have recently been taking much longer to decide on divorce. Property division, especially regarding real estate, has always been tricky in divorce cases, but now couples are facing even greater uncertainties in splitting assets due to China’s housing slump.

When a divorce is filed in China, judges usually won’t grant the divorce if one spouse firmly opposes the divorce. Additionally, as of January 2021, China has implemented a 30-day waiting period for divorces. These factors have contributed to the country’s lower divorce numbers.

Liu explains the risks to clients upfront – a lawsuit may not end in divorce, and dividing assets can be time-consuming. If spouses dispute housing value or ownership stake, further legal proceedings may be needed.

Previously, with stable or rising prices, spouses faced smaller differences in dividing real estate assets. One would keep the home, compensating the other financially per their ownership share. But now, amid difficult sales and unstable prices, deciding who gets the house and at what value is much more contentious.

According to Liu, this year several clients have been unable to proceed with their divorce due to housing market factors. The housing downturn is creating uncertainties in asset division that discourage couples from splitting.

Source: Central News Agency (Taiwan), September 16, 2023
https://www.cna.com.tw/news/acn/202309160200.aspx