Hong Kong’s March retail sales down 7%, says government data
Sales of clothing, footwear and accessories dropped 16.7 per cent in March ater an increase of 12.3 per cent in February
Hong Kong’s March retail sales fell 7 per cent from a year earlier, partly due to a high base of comparison for visitor spending and the Easter holidays, government data showed on Friday.
Sales decreased to HK$31.2 billion ($3.99 billion), snapping 15 consecutive months of growth. That compared with a 1.9% rise in February.
“The changing consumption paterns of visitors and residents may continue to pose challenges,” a government spokesman said.
Hong Kong visitor arrivals are increasing following the pandemic lockdown, helping to drive 2.7 per cent growth in the local economy in the first quarter. Although arrivals are increasing there are signs tourists are spending less.
The government’s efforts to promote a mega event economy, a further revival in inbound tourism and rising household income should help to support the retail sector, the spokesman said.
In volume terms, retail sales decreased 8.6 per cent year-on-year in March, compared with a 0.5 per cent growth in February.
For the first quarter of 2024, total retail sales decreased by 1.3 per cent compared with the same period in 2023, while the volume of total retail sales fell 3.1 per cent, according to provisional estimates.
March visitor arrivals stood at 3.4 million, up 38.6 per cent from a year ago period, data from the Hong Kong Tourism Board showed. That compared with 4.0 million in February, 3.83 million in January.
The number of mainland Chinese visitors stood at 2.46 million in March, up 24.9 per cent from the same period in 2023. That compared to February’s 3.25 million and January’s 2.98 million.
Sales of jewellery, watches, clocks and valuable gits fell 17.7 per cent in March on year ater a 3.6 per cent decline in February.
Sales of clothing, footwear and accessories dropped 16.7 per cent in March ater an increase of 12.3 per cent in February.
The government also said a longer period of tight financial conditions may dampen economic confidence and activities.
Meanwhile Hong Kong stocks continued their rally on Friday, as improvement in market sentiment persisted, buoyed by China’s stepped-up efforts to boost the economy.
The Hang Seng Index closed up 1.5 per cent, recording a ninth consecutive day of gains and its the longest winning streak since January 2018. Hong Kong-listed Chinese tech gaints extended gains and closed 2.7 per cent higher. Mainland Chinese markets are closed for holidays from May 1-3.
China’s politburo statement at the end of April “indicates a stronger commitment to a pro-growth and pro-reform policy agenda,” said Jason Lui, head of APAC Equity and derivative strategy, BNP Paribas, adding the firm is upgrading their view on the MSCI China index.
Meanwhile, UBS says global hedge funds that use an equities long-short strategy are growing increasingly bullish on China, evidenced by the heavy pick-up in their purchases of Hong Kong-listed shares.
Hong Kong’s securities regulator started an insider dealing prosecution against hedge fund Segantii Capital Management, its founder and a former trader, the watchdog said on Thursday.
The Hong Kong Securities and Futures Commission (SFC) said it had started criminal proceedings against Segantii, its founder and chief investment officer Simon Sadler, and former trader Daniel La Rocca for insider dealing in the shares of a Hong Kong-listed company prior to a block trade in June 2017.
Segantii did not immediately respond to a Reuters request for comment and the two defendants could not be contacted.
Sadler, a British businessman, is also owner of his hometown soccer club, Blackpool Football Club. Established in 2007, Segantii is one of the oldest and biggest hedge funds in Asia. Its flagship Asia-pacific Equity Multi-strategy Fund was up 2.5% in the first quarter, ater a 1.6% decline in 2023, according to a fund’s monthly leter seen by Reuters.
The fund managed about $4.8 billion at the end of March, the leter said.
Segantii, one of Hong Kong’s most high profile hedge funds, also has operations in London, New York and Dubai, according to its website.
The two defendants appeared at Hong Kong’s Eastern Magistrates’ Court on Thursday morning, no plea was taken and the case was adjourned to June 12, SFC said in a statement.
Global hedge funds that use an equities long-short strategy are growing increasingly bullish on China, evidenced by the heavy pick-up in their purchases of Hong Kong-listed shares, UBS Group said in a note.
Hong Kong’s stock markets, which closely mirror China’s struggling performance, have recovered since March as Beijing rolled out economic support measures. The Hang Seng Index rose more than 7% in April, marking its best monthly gain since January 2023 and outperforming most major markets.