Hong Kong's retail sales are thriving while financial markets are being buffeted by global trade tensions and rising borrowing costs. The value of total retail sales in May rose 12.9% over the same month in 2017, which is also its 15th month of expansion. Sales of watches, clocks and valuable gifts, being the best performers, jumped 23.8% in May. The outlook for retails sales business stays positive, given the robust purchasing power and a buoyant tourism sector. Hysan Development (0014) is a leading property investment, management and development company in Hong Kong. The company is the largest commercial landlord in Causeway Bay, comprising Lee Garden, Hysan Place, Lee Theatre Plaza etc. Hysan saw sales in its malls outperform the market by rising 28% in the first five months this year, compared with the previous year. Hysan Place and Lee garden recorded a growth of more than 30% respectively compared with the previous year. Lee Garden Three was launched since June, resulting a 95% occupancy rate of office space and 80% occupancy rate of retail properties. This is expected to provide extra momentum for the company's revenue growth. The Central-Wan Chai Bypass and Island Eastern Corridor Link will be completed in early 2019, which is expected to lead to a shift of companies' offices from Central to Wan Chai and Causeway Bay etc. This will help stimulating the office rental market within those areas. Property investors, especially those with HK dollar as main income, are therefore good defensive stocks amid the intensifying US-China trade war.

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