The RMB has fallen 12% against the HKD since Aug 2013.
The strong HKD remains one of the key headwinds for retailers. Maybank Kim Eng notes that when the HKD is strong, mainland customers generally prefer to shop elsewhere.
"The RMB has fallen 12% against the HKD since Aug 2013, while other destinations, including Japan, the UK and Europe have become relatively more attractive based on the significant depreciation of their currencies in the past two years. Our strategy team believes the strong USD/HKD trend may reverse this year if the US market cannot continue to attract capital amid Trump’s protectionist stance."
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