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The nascent recovery in the Hong Kong retail sector is under pressure from a depreciating continental Chinese currency, with buyers on the other side of the border expressing more caution about spending in the economy. city because they get cheaper. Post spoke of the recent weakness of the yuan as China's growing trade war with America had eroded their buying power in the city tax-free.
The Hong Kong dollar is pegged to the greenback. 19659002] Analysts warned that the yuan, which depreciated 6.6% against the Hong Kong dollar since the beginning of April, would remain weak and continue to put pressure on retailers in the economy. city.
"The depreciation of the renminbi will be a key factor in the resumption of Hong Kong retail – whether Chinese tourists travel or not." They will travel, "said Mariana Kou, China's chief of education and consumer research from Hong Kong to CLSA
Hong Kong small businesses worry about their prospects for recovery of retail trade
According to the macroeconomic context, the yuan should remain weak, she said.
Hong Kong's retail sector finally began to rebound last year after two years of decline. It has experienced double-digit growth since February, up 12.9 percent in May
Its fortunes are closely related to visitors to the continent, which represent three out of four tourists in Hong Kong.
According to China's foreign trade system, 1 US dollar was equivalent to 6.79 yuan on Friday. The greenback gained 8.2% against the Chinese currency since April 2nd and 6.6% against the Hong Kong dollar. CLSA was expecting the yuan to depreciate further to 7 yuan per US dollar by the end of the year.
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Li Yibei Guangzhou's mother, who comes to Hong Kong every two months, has said she would think twice before buying things in the future. "Of course, it is more expensive to shop here, but I will definitely buy things Cai Meirong, a 31-year-old agent based in Shandong who helps mainland Chinese customers buy consumer goods in Hong Kong , said she was facing a less profitable business.It could not pass on the exchange rate on her customers in the form of higher prices, she said.
"Compared to commercial services in Japan and in South Korea, products in Hong Kong are not cheap "explained." If I increase the price too much, people will not buy goods through me. "
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However, Standard Chartered Greater Bank China The economist Kelvin Lau Kin-heng was confident about the prospects of retail sales, citing resilient demand.
"The Yuan will likely remain low in the coming months, but will not be significantly lower than in current conditions. " 19659002] It was unlikely that Beijing would allow the currency to depreciate "too quickly in too short a time", to avoid risking capital outflows from China.
And there were still many ruthless buyers discouraged by the volatile currency. Yan, 33, from Guangzhou, who travels regularly to Hong Kong to shop, said that she made the trip because the products in Hong Kong were genuine.
"The cosmetics that I buy here are even cheaper than those on the continent".
"At least I want She spent about HK $ 3,000 per visit," she added.
Tse Wing-leung, Head of Currency Exchange in Hong Kong, Tsuen Wan , said that there had been counterfeit problems.There were 20 percent more people who buy the yuan over the last month, betting on the currency that rises again.
Another at Causeway Bay also said that figure had jumped 20 percent this month 19659030] window.fbAsyncInit = function () {
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