HK retail stocks slump after "leaden" golden week
Hong Kong retail stocks fell sharply on Monday on worries that the city is losing its appeal to mainland Chinese customers as a shopping Mecca after a fall in luxury goods sales during the past eight-day national holiday.
Local jeweller Luk Fook (0590.HK) lost 5.33 per cent to HK$22.25 as of 11:12 am on Monday. Watch distributor Hengdeli Holdings (3389.HK) shed 3.64 per cent to HK$2.12 while its competitor Oriental Watch Holdings (0398.HK) dropped 5.11 per cent to HK$2.23.
The benchmark Hang Seng Index lost 142.08 points, or 0.68 per cent, to 20,870.30 as of 11:12 am on Monday.
Purchases of luxury goods by mainland visitors in Hong Kong over Golden Week could have fallen at least 10 per cent from a year ago, said Joseph Tung, executive director of the Travel Industry Council. The eight-day holiday started on September 30.
Data released last Thursday revealed that total retail sales of jewellery, clocks, watches and other valuables fell by 3.4 per cent in Hong Kong in August, bigger than declines in retail sales of other type of goods.