Hong Kong October retail sales fall 2.9% y/y

HONG Kong’s October retail sales fell 2.9 per cent from a year earlier, reflecting a change in consumption patterns, government data showed on Friday (Nov 29).

Sales fell to HK$32.9 billion (S$5.7 billion) in an eighth consecutive month of decline after a 6.9 per cent slump in September and 10 per cent decline in August.

“The Mainland’s (China’s) recent introduction of various measures to boost the economy would help support consumption sentiment and economic activities in Hong Kong,” a government spokesperson said, adding that the change in consumption patterns would pose a constraint.

China’s measures, including resumption of a multiple-entry visitors’ scheme for Shenzhen residents to Hong Kong, would support spending, the government said.

In volume terms, October retail sales fell 4.9 per cent from a year earlier compared with an 8.7 per cent fall in September.

For the first 10 months of 2024, total retail sales value decreased 7.1 per cent compared to the same period in 2023, while the volume of total retail sales fell 8.8 per cent, according to provisional estimates.

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China has eased visa restrictions for Shenzhen residents visiting Hong Kong effective Dec 1 and Zhuhai residents visiting Macau effective Jan 1.

October visitor arrivals stood at 4.09 million, up 18.3 per cent from the same month a year ago, data from the Hong Kong Tourism Board showed. That compared to 3.06 million in September, 4.45 million in August and 3.92 million in July.

The number of mainland Chinese visitors stood at 3.14 million in October, up 16.2 per cent from a year ago. That compared to 2.29 million in September, 3.66 million in August, and 3.14 million in July.

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Sales of jewellery, watches, clocks and valuable gifts fell 11.1 per cent in October year on year after a 17.9 per cent decline in September.

Sales of clothing, footwear and allied products dropped 9.4 per cent in October after a 7.9 per cent decline in September. REUTERS