08-05-2019

The value of retail sales in the first quarter contracted 1.2% year-on-year, but the figure lifted 3.6% compared to the previous quarter of last year. For March, the retail sales only decreased slightly by 0.2% year-on-year, while the figure improved dramatically from -10.2% for February. Visitors to Hong Kong in the first quarter advanced by 16.8% year-on-year, with Mainland visitors grew by nearly 20%. During the five-day “Golden-Week” break, about 1 million Chinese visitors arrived the town, up 40% year-on-year. It is expected to continue to attract tourists to visit Hong Kong amid the launch of Guangzhou-Shenzhen-Hong Kong high-speed rail and Hong Kong-Zhuhai-Macao Bridge. Although the US-China trade talks remain bearish and weigh on retail sentiment, the wealth effect stemming from Hong Kong property price rally since February and favorable first quarter retail growth from malls located in the main shopping areas could provide support for retail market and rental revenue in the second quarter. On the other hand, office supply in core commercial districts remains under pressure means providing office rental support. Rental properties providing stable income could guard against market downturn amid the low interest rate environment and US-China trade dispute uncertainties.

Reference:
Bloomberg, Census and Statistics Department, Hong Kong Tourism Board

General Disclosure and Disclaimer
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.