Boost household spending to rebalance China's economy: Economist
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Business Times
9 minutes ago
- Business Times
Hong Kong retailers under strain as changing trends drive store closures
[HONG KONG] Hong Kong's retailers are battling against shifting consumer habits, as visitors spend less and locals head across the border to China for cheaper dining and shopping, leading to a wave of store closures. A 36-year-old Chinese seafood restaurant chain and a popular high-end food court in the bustling Causeway Bay district closed this week. Other recent closures in the financial hub include cinema chains, a major catering group, a 41-year-old bakery and a three-decade-old congee chain. Weak domestic spending and cheaper prices in Shenzhen, bordering Hong Kong, have compounded retailers' woes, according to industry figures and analysts. Furthermore, China's economic slowdown, US-China geopolitical tensions and a national security clampdown have also weighed on business sentiment and hurt Hong Kong's small and open economy. The city's GDP is forecast to grow between 2 to 3 per cent this year, compared with 2.5 per cent last year and 3.2 per cent in 2023. 'The change in consumption patterns is irreversible,' said Annie Yau Tse, chairwoman of Hong Kong's Retail Management Association. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Hong Kong was once a prime destination for high-spending mainland visitors but mass anti-government protests in 2019 and Covid restrictions led to a decline in its appeal. The authorities have launched initiatives to revive tourism, including hosting large-scale events such as Coldplay concerts and a Manchester United exhibition match at a new harbourside stadium. While visitors are returning to near 2018 levels with May arrivals up 20 per cent to 4.1 million visitors versus five million in 2018, spending remains soft. Retail sales by value rose 2.4 per cent in May from a year earlier to HK$31.3 billion (S$5.1 billion), the first rise in 14 months, government data showed on Wednesday. However, it remains only around 77 per cent of the HK$40.5 billion in May 2018. 'We are trying hard to think of ways to turn the traffic into business,' Yau Tse said. Jack Tong, director of Savills Research & Consultancy, said the recent string of closures was due to a 'structural shift in the local retail market' starting from 2023. It is 'no longer strong enough to support such retail trades and would be beyond repair even by further reducing rents'. Overall prime street rents in the first quarter have fallen back to 2003 levels, he said. 'The rise in local outbound travel in Hong Kong and changes in mainland tourists' spending patterns and preferences in Hong Kong and Macau continued to weigh on the overall retail sector during the financial year,' jeweller Chow Tai Fook said. Last month, Cafe de Coral reported a 29.6 per cent drop in net profit for the 2024/25 year ended in March, citing a weak economy and consumer sentiment. Despite the tough conditions, some signs of recovery are emerging. Vipul Sutariya, who attended the jewellery fair in June, said Chinese dealers were back at the fair 'not to buy immediately but to ask, which is the biggest change in the past 1.5 years', he said. 'In my view, that's a good sign.' REUTERS
CNA
16 minutes ago
- CNA
Hong Kong retailers under strain as changing trends drive store closures
HONG KONG: Hong Kong's retailers are battling against shifting consumer habits, as visitors spend less and locals head across the border to China for cheaper dining and shopping, leading to a wave of store closures. A 36-year-old Chinese seafood restaurant chain and a popular high-end food court in the bustling Causeway Bay district closed this week. Other recent closures in the financial hub include cinema chains, a major catering group, a 41-year-old bakery and a three-decade-old congee chain. Weak domestic spending and cheaper prices in Shenzhen, bordering Hong Kong, have compounded retailers' woes, according to industry figures and analysts. Furthermore, China's economic slowdown, US-China geopolitical tensions and a national security clampdown have also weighed on business sentiment and hurt Hong Kong's small and open economy. The city's GDP is forecast to grow between 2 per cent - 3 per cent this year, compared with 2.5 per cent last year and 3.2 per cent in 2023. "The change in consumption patterns is irreversible," said Annie Yau Tse, chairwoman of Hong Kong's Retail Management Association. Hong Kong was once a prime destination for high-spending mainland visitors but mass anti-government protests in 2019 and COVID restrictions led to a decline in its appeal. The authorities have launched initiatives to revive tourism, including hosting large-scale events such as Coldplay concerts and a Manchester United exhibition match at a new harbourside stadium. While visitors are returning to near 2018 levels with May arrivals up 20 per cent to 4.08 million visitors versus 4.95 million in 2018, spending remains soft. Retail sales by value rose 2.4 per cent in May from a year earlier to HK$31.3 billion (US$4 billion), the first rise in 14 months, government data showed on Wednesday. However, it remains only around 77 per cent of the HK$40.5 billion in May 2018. "We are trying hard to think of ways to turn the traffic into business," Yau Tse said. Jack Tong, director of Savills Research & Consultancy, said the recent string of closures was due to a "structural shift in the local retail market" starting from 2023. It is "no longer strong enough to support such retail trades and would be beyond repair even by further reducing rents." Overall prime street rents in the first quarter have fallen back to 2003 levels, he said. "The rise in local outbound travel in Hong Kong and changes in mainland tourists' spending patterns and preferences in Hong Kong and Macau continued to weigh on the overall retail sector during the financial year," jeweller Chow Tai Fook said. Last month, Cafe de Coral reported a 29.6 per cent drop in net profit for the 2024/25 year ended in March, citing a weak economy and consumer sentiment. Despite the tough conditions, some signs of recovery are emerging. Vipul Sutariya, who attended the jewellery fair in June, said Chinese dealers were back at the fair "not to buy immediately but to ask, which is the biggest change in the past 1.5 years," he said. "In my view that's a good sign."
Independent Singapore
26 minutes ago
- Independent Singapore
MBA graduates are in high demand as employers prioritise tech-ready talent
In a progressively tech-driven business setting, MBA graduates are coming out as the top choice for recruiters all over the world. A recent global study featured in the latest HRD Asia article discloses that business owners and company managers are prioritising them based on flexibility, strategic thinking, and communication competencies as organisations contend with the swift integration of newfangled technologies. According to the 2025 Corporate Recruiters Survey , directed by the Graduate Management Admission Council (GMAC), 90% of employers in 46 nations plan to engage MBA talent this year. While this figure reflects last year's outlooks, there's a noteworthy outpouring of interest — 37% of headhunters say they'll hire more MBAs than they did in 2024, more than double last year's rate of 17%. The proportion of employers who think of reducing MBA hiring has plummeted to 14%, an evident indicator of increasing confidence in business school graduates, notwithstanding continuing worldwide economic and geopolitical fears. Beyond the MBA: Other graduate degrees on the rise The hiring impetus goes beyond MBAs. Employers are also levelling up the employment of candidates with other business-focused degrees. Year-over-year growth includes: Master of Management: 30% (up from 12%) Master of Data Analytics: 29% (up from 15%) Master of Business Analytics: 28% (up from 16%) Master of Marketing: 26% (up from 15%) Master of Finance: 25% (up from 13%) Master of Accounting: 25% (up from 21%) Tech skills meet human intelligence The report stresses that business graduates' exceptional skill sets are gaining value even with AI and the technological revolution. Approximately two-thirds (63%) of polled employers said that the capabilities gained from a graduate business education are more vital today than years before. Good communication (66%) and useful capabilities (61%) were among the top attributes recruiters ascribed to business school alumni. 'As AI becomes more integral in a company's decision-making and strategy development, employers continue to turn to business school graduates for their versatility and strategic thinking,' said Joy Jones, CEO of GMAC. 'I give kudos to business schools' intentional cultivation of these relevant skills in their students, who stand out even more as valuable contributors and future leaders in the ever-evolving business world.' See also Recruiter explains why it's so hard to get a job right now Optimism with a note of caution However, GMAC noted that although these statistics were based on employer forecasts, and earlier evaluations have somewhat exceeded actual hiring, they still provide a reassuring view for present and forthcoming graduate business undergraduates. 'Employers remain optimistic about the value of business graduates,' the report states. 'Even in the face of headwinds, these candidates are being recognized for their ability to navigate uncertainty and drive innovation.' Briefly, whether it's becoming proficient at AI, navigating strategic choices, or dealing with market distractions, business school graduates seem to be more indispensable in shaping the future of work.
