HSBC cut its rating investment for Hong Kong on Monday over fears that the pro-democracy campaign could affect relations with China and subsequently hurt its economy.

Based on the bank's third quarter global equity report, the Hong Kong stock market was downgraded from "neutral" to "underweight." It cited "concerns about negative news flow" over the Occupy Central with Love and Peace campaign which it believed could negatively impact relations with Beijing and "hurt its economy."

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Recently, some 500 activists who rallied for electoral reforms and participated in a mass sit-in at Hong Kong's central business district had been detained by local police, according to The Standard-Hong Kong.

Chan Kin Man, an Occupy Central organizer, said that although the sit-in may have affected the economy, it would only be temporary and would be beneficial in the long run.

"What we are pursuing is the long-term transparency and accountability in the government, which is good for the economy," Chan told media.

Meanwhile, the AFP reported that banking giant, HSBC, had revised its report to include other concerns over the city's economy.

Aside from the Occupy Central campaign, the report cited concerns over "the risk of weak residential real estate prices, the slowdown in mainland tourist arrivals, the market's link to U.S. interest rates...and weak earnings momentum" as a reason for the stock market downgrade.

HSBC declined to comment on the revision.

Last month, The Wall Street Journal had cited Apple Daily, a liberal Hong Kong newspaper, that alleged banking giants Standard Chartered and HSBC had withdrawn their advertising last year after a request from China. Both banks did not confirm the report.

China has pledged to give residents of Hong Kong the right to vote for their leader in the 2017 elections under the condition that nominees had to pass qualification screenings conducted by a nomination committee. Pro-democracy activists argue that this process could result in purely pro-China candidates.

TagsHong Kong, HSBC, hk pro-democracy movement, Occupy Central campaign, HK financial outlook, HK economy