As if they aren't sluggish already.
It is believed that any meaningful depreciation of RMB could further dampen HK retail sales, as Mainland visitors' spending represented 35% of HK's total retail sales in 2015.
According to a research note from Bank of America Merrill Lynch, this is compared to the below 20% prior to 2008.
A weaker RMB may diminish the spending power of Mainland Chinese, thus putting pressure on their appetite to shop in HK.
A caveat is that if a substantial depreciation of the RMB discourages traveling abroad, higher onshore consumption may help HK developers with substantial retail assets in China.
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