Shopping mall owners take a drubbing in the stock market as Hong Kong protests damage confidence in retail sector
- Swire Properties and Wharf Reic’s shares have declined the most since the huge rally on June 9 that kickstarted what has now been weeks of demonstrations punctuated by violent clashes with police
Shopping mall owners have become victims of the mass rallies in Hong Kong, with their share prices taking a battering as investors lose faith in the city’s retail market.
Among 18 major listed developers and commercial landlords, Swire Properties and Wharf Reic’s share prices have declined the most since the huge rally on June 9 that kickstarted what has now been weeks of demonstrations punctuated by violent clashes with police.
Swire dropped 8.1 per cent to close at HK$30.75 on Wednesday, while Wharf Reic slumped by 7.1 per cent to close at HK$50.35.
“The protests have lasted for more than a month, and investors are seeing how they have got more serious. The market is a little worried about retail sales because the protests may affect the number of mainland visitors coming,” said Raymond Cheng, head of Hong Kong and China research and property at CGS-CIMB Securities.
“Even foreign governments have warned Hong Kong may not be a safe city to visit amid the rallies. Investors immediately think the direct impact of the protests is on the retail sales and [foot] traffic in shopping malls.”
Cheng warned that if the protests were to last a long time, it would affect attitudes towards the business environment, the office market and the outlook for residential prices.