Hong Kong Business

Leasing demand for Grade A office down 23% in Q2
Limited inspection activity caused the decline in leasing demand.
Property sales fell by almost 21% in June
Over 6,290 sale and purchase deals for all units were received for registration.
Waiting time for public rental housing to increase within 5 years
It was already increased to 6.1 years in March 2022.
High-street shop vacancy rises to 16.5% in Q2 22
Amongst core districts, Tsim Sha Tsui had the biggest vacancy rate.   High-street shop vacancy rose 1.3 percentage points from Q122 to hit 16.5% in Q2 22, data from CBRE showed.   The increase in vacancy was likely due to some landlords, who are under limited financial pressure, opting to leave units vacant rather than renting them out.   This practice was most evident in Tsim Sha Tsui and Mong Kok where vacancy rates were the highest, at 23.2% and 18.9%, respectively.   Whilst vacancy rose during the quarter, rents remained flat. According to CBRE, rents were unchanged from Q122 because “cash-rich landlords with strong holding power prevented some units from transacting at lower rents this quarter.”   In addition to rents being unchanged, leasing volume also increased in Q2, signalling an improvement in the retail property sector.   “Improved retailer sentiment underpinned an increase in transaction volume, although many deals signed this quarter involved short-term leases,” CBRE commented.
ETF trading under Stock Connect kicks off
There are over 130 EFTs listed in Hong Kong.
IPO market to regain momentum in H2 2022
For the whole year, PwC expects Hong Kong to raise between $180m to $200m.
Lukfook’s attributable profit rises 36.9%YoY in 2022
It saw a record revenue growth of 32.5%.
Rising interest rates to be Hong Kong banks’ saving grace
NIMs are expected to rise and outweigh asset quality deterioration in the near term.
Xi wants ‘one country, two systems’ unchanged
The Chinese leader said the principle was successful.
Lee seeks to strengthen HK status as international financial, trading centre
John Lee was sworn in as Hong Kong’s new leader.
HKEX to attract high-quality US-listed Chinese firms: PwC
Overall market capitalisation in Hong Kong reached $42t in 2021.
Is Hong Kong’s role as offshore financial center under threat?
Inflows from Mainland China will support the city, but issues are challenging this role.

Join the Hong Kong Business community

Exclusives

Exclusives

Information Technology A new canvas: Why artists are jumping into the NFT space
Entering the digital space allows an artist to earn more through royalties each time their art sells.
One chat away: Conversational commerce levels the playing field for brands online
Leaving consumers with unanswered queries can result in $2m missed revenue per day. 
Information Technology How Coherent turns Excel sheets into improved business systems with a single click
It frees companies from 95% of the costs incurred from the manual spreadsheet-to-API conversion.
Financial Services Prepare to go cashless or pay the price
One in three consumers will abandon a purchase if they cannot pay for it digitally.
Insurance Time for a comeback? Hong Kong’s top 50 insurers show a 9.75% surge in assets
Health and wellness products still remain a priority for the industry.
Residential Rent control bill aims to bury abusive ‘coffin home’ landlords
A ban on rent hikes in the first 2 years and caps on increases after that have landlords worried.
HR & Education Competing for the best talent in Hong Kong’s shrinking talent pool
About 85% of employers are concerned about the talent shortage.

Top News

Leasing demand for Grade A office down 23% in Q2
Limited inspection activity caused the decline in leasing demand.
Property sales fell by almost 21% in June
Over 6,290 sale and purchase deals for all units were received for registration.
Waiting time for public rental housing to increase within 5 years
It was already increased to 6.1 years in March 2022.
High-street shop vacancy rises to 16.5% in Q2 22
Amongst core districts, Tsim Sha Tsui had the biggest vacancy rate.   High-street shop vacancy rose 1.3 percentage points from Q122 to hit 16.5% in Q2 22, data from CBRE showed.   The increase in vacancy was likely due to some landlords, who are under limited financial pressure, opting to leave units vacant rather than renting them out.   This practice was most evident in Tsim Sha Tsui and Mong Kok where vacancy rates were the highest, at 23.2% and 18.9%, respectively.   Whilst vacancy rose during the quarter, rents remained flat. According to CBRE, rents were unchanged from Q122 because “cash-rich landlords with strong holding power prevented some units from transacting at lower rents this quarter.”   In addition to rents being unchanged, leasing volume also increased in Q2, signalling an improvement in the retail property sector.   “Improved retailer sentiment underpinned an increase in transaction volume, although many deals signed this quarter involved short-term leases,” CBRE commented.
ETF trading under Stock Connect kicks off
There are over 130 EFTs listed in Hong Kong.
IPO market to regain momentum in H2 2022
For the whole year, PwC expects Hong Kong to raise between $180m to $200m.
Lukfook’s attributable profit rises 36.9%YoY in 2022
It saw a record revenue growth of 32.5%.
Rising interest rates to be Hong Kong banks’ saving grace
NIMs are expected to rise and outweigh asset quality deterioration in the near term.
Xi wants ‘one country, two systems’ unchanged
The Chinese leader said the principle was successful.
Lee seeks to strengthen HK status as international financial, trading centre
John Lee was sworn in as Hong Kong’s new leader.
HKEX to attract high-quality US-listed Chinese firms: PwC
Overall market capitalisation in Hong Kong reached $42t in 2021.
Is Hong Kong’s role as offshore financial center under threat?
Inflows from Mainland China will support the city, but issues are challenging this role.

Exclusives

Information Technology A new canvas: Why artists are jumping into the NFT space
Entering the digital space allows an artist to earn more through royalties each time their art sells.
One chat away: Conversational commerce levels the playing field for brands online
Leaving consumers with unanswered queries can result in $2m missed revenue per day. 
Information Technology How Coherent turns Excel sheets into improved business systems with a single click
It frees companies from 95% of the costs incurred from the manual spreadsheet-to-API conversion.
Financial Services Prepare to go cashless or pay the price
One in three consumers will abandon a purchase if they cannot pay for it digitally.
Insurance Time for a comeback? Hong Kong’s top 50 insurers show a 9.75% surge in assets
Health and wellness products still remain a priority for the industry.
Residential Rent control bill aims to bury abusive ‘coffin home’ landlords
A ban on rent hikes in the first 2 years and caps on increases after that have landlords worried.
HR & Education Competing for the best talent in Hong Kong’s shrinking talent pool
About 85% of employers are concerned about the talent shortage.

Join the Hong Kong Business community