Hong Kong rich-poor gap widens

Featured - June 22nd, 2012
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According to government data, Hong Kong wealth gap continues to widen, surpassing figures in Singapore, UK, Australia and cities such as Washington and New York, reports the Wall Street Journal.

Hong Kong’s Census and Statistics Department indicated an increase in the city’s Gini coefficient, which measures inequality using a 0 – 1 index, to 0.537 in 2011 from 0.525 in 2001.

The inequality is visibly seen in the contrast “cage homes” and luxury stores. As housing prices increased, low income families have been getting used to living in 6ft by 2ft houses. According to Demographia, the Hong Kong median home price is 12.6 times the annual median household income, with only 5.1 in the UK and 3.0 in the US.

The report came as Hong Kong Chief Executive Donald Tsang prepares to step down. Tsang was criticized for not utilizing sectors to facilitate employment that would help the poor.