More Hong Kong companies say business impacted by mass protests

Swire Properties

08/08/2019 11:54

HONG KONG, Aug 8 (Reuters) - Conglomerate Swire Pacific
 0019.HK  became the latest major Hong Kong company to voice
concern about the impact of protests in the city on business
activity, saying they are having direct and indirect impact on
demand on a number of its businesses.
    The comments by Swire, whose business spans retail to
property to airlines, come after similar concerns raised by
Cathay Pacific Airways Ltd  0293.HK  and Hongkong and Shanghai
Hotels  0045.HK 's on Wednesday. Swire owns 45% of Cathay
Pacific, Refinitiv data shows.  urn:newsml:reuters.com:*:nL4N2531PR
    "The protests in Hong Kong have had some effect on retail
sales at our malls, particularly at Pacific Place. If the
protests continue, sales are likely to continue to be affected,"
Michelle Low, Swire Pacific finance director said in the interim
results statement on Thursday, referring to its high-end
shopping mall in Admiralty, a financial district where many of
the mass protests took place.     
    "Trading conditions for our hotels are expected to be stable
in the second half of 2019, except that occupancy in Hong Kong
has been affected somewhat by the protests and this is likely to
continue if the situation persists."
    Swire said the global trade tensions were also causing
uncertainty.
    Millions have taken to Hong Kong streets in anti-government
protests that have intensified since mid-June, at times forcing
banks, stores, shopping malls, restaurants and even government
buildings to close as the demonstrations degenerated into
violent clashes between police and activists.  urn:newsml:reuters.com:*:nL4N2530UQ
    Hong Kong's Secretary for Commerce and Economic Development
Edward Yau said on Thursday the drop in inbound tourists
accelerated in the past few weeks, with the first week of August
declining 31% from a year ago, compared to just single digit
percentage drop in mid-July. 
    He said the logistics and retail sectors together employ
over 1 million people in Hong Kong, and it could hurt the city's
employment if the sectors continue to be under pressure.
    Travel Industry Council chairman Jason Wong told Reuters the
number of tours from mainland China has fallen 40% to about 140
tours per day in the first week of August, from about 230 tours
a day in the same period last year.
    Wong also expressed concern that the number of business
visitors would reduce as some business meetings and conferences
were seen scaling back the size or being cancelled.
    "Many related workers may need to take no pay leave and
their income will be affected," Wong said.
    Also on Thursday, MTR Corp Ltd  0066.HK  and Giordano
International Ltd  0709.HK  said in their interim results
statement that the current social unrest could weigh on the
their business.
    "This time, it is like a perfect storm," Wharf Real Estate
Investment  1997.HK  chairman Stephen Ng said on Tuesday, as
Hong Kong faces both internal and external pressure, including 
a weakening global economy and U.S.-China trade tensions, at the
same time.    
    He is not optimistic about the retail and hotel industry in
the second half, he added.

 (Reporting by Donny Kwok and Clare Jim; Additional reporting by
Lukas Job; Editing by Muralikumar Anantharaman)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))