HK's 8.1% retail boost must be thankful for this factor

Solid growth before 2012 ended.

According to OCBC Investment Research, HK retail sales by volume grew by 8.1% YoY in Nov 2012, representing a rebound from the 3.6% YoY growth in Oct 2012.  For 11M12, retail sales by volume grew by a solid 7.1% YoY. Tourist arrivals were a contributing factor, growing by 18.7% YoY in Nov (vs. +15.8% YoY for 10M12). 11M12 tourist arrivals totaled a whopping 44m. As we have previously calculated, tourists account for one quarter of overall HK retail sales (in terms of value), with mainland Chinese tourists accounting for one fifth of overall retail sales. The long term growth of the Chinese economy bodes well for HK retail properties.