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Business

Hong Kong stocks close higher, up 5 consecutive days

Hong Kong stocks rose slightly on Monday, with the blue-chip index closing higher for five consecutive trading days after China’s announced better than expected October retail sales but trading volume remained thin. The Hang Seng Index ended at 25,390, up 62 points or 0.25% on turnover of about HK$118.6 billion. The index moved between within a narrow range of 253 points for the day. China’s industrial production rose 3.5 percent year-on-year in October and retail sales increased 4.9 percent, both were slightly better than market expected, according to the South China Morning Post. The Hang Seng technology index edged up 0.5% to ​​6,601, while Tencent rose more than 1%. Mainland property and property management stocks fell, while the performance of financial stocks was mixed. Shares of HSBC eased 0.22% but AIA rose more than 2%. The Beijing Stock Exchange started its first day of trading on Monday and the total trading volume of 9.573 billion yuan. At the close, 59 stocks or nearly three quarter of the 81 listed stocks, closed lower and three were suspended. The Shanghai and Shenzhen stock markets fell. Lithium battery stocks weakened while meta-universe concept stocks and food and beverage stocks rose. The Shanghai Composite Index closed at 3,533, down 0.16%. The Shenzhen Stock Exchange Composite Index eased 0.19% to 2,462.39.

Business

Hong Kong stocks close higher, blue chips performance varies

Hong Kong stocks rose for the fourth day in a row on Friday, with the blue chip index ending the week above the 25,000 mark boosted by technology stocks, while other blue chips recorded diverse performance. The Heng Seng Index opened up 1.09 percent but gains were pared at noon. The benchmark index was up 0.32% to end the day at 25,327, the highest close of the week in a four days winning streak.  Technology stocks led the market rally as Tencent surged 1.59% to HK$458.2. Meituan followed by jumping 2.6% to HK$289.8. JD.com rose 5.17% to HK$329.4 as it’s sales during the Double Eleven Event achieved a record high of 349 million yuan. Alibaba dropped 0.49% to HK$162.4 as gross merchandise volume from its online shopping platform, Tmall, dropped. Mobile device stocks recorded diverse performances. Sunny Optical was the best performing blue chip stock, rocketing 4.72% to HK$226.0. Meanwhile, Semiconductor Manufacturing International Corporation (SMIC) dropped 3.8% to HK$22.6. SMIC’s deputy chairman of the board and executive director Chiang Sheung-yee announced his resignation on Thursday. Haidilao decreased 9.01% to HK$20.2, making it the biggest loser among all blue chips. The economy in mainland China remains weak due to inflation. This might affect enterprises’ profitability, Yiu Ho-yin, managing director of Cash Wealth Management told Oriental Daily News. HSCE and the SSE Composite Index grew 0.73% and 0.18% respectively, while the CSI 300 Index fell 0.21%.

Business

Hong Kong retail sales continue to rise supported by consumption voucher, government says

  Hong Kong retail sales as of September have grown for the eighth straight month as residents spend their HK$5,000 consumption vouchers intended to boost the local economy, announced the government today. Retail sales in September rose 7.3% from a year earlier to HK$28 billion. August also saw 11.9% growth from last year, the data showed. “The stable local epidemic and improving employment and income conditions, together with the Consumption Voucher Scheme, should remain supportive to the retail sector in the near term,” the announcement said. For the first nine months of this year, before the consumption vouchers were given out,  retail sales increased 8% in value and 6.8% in volume with an estimated increase of 43.5% in online retail sales from last year, according to the report. Sales of jewellery, watches, clocks and valuable gifts, which heavily depended on tourists from mainland China before the pandemic, continued to recover, as the value of sales climbed 16.2% from a year earlier, compared with 28% growth in August, the report said. “However, the virtually frozen inbound tourism will continue to constrain the extent of revival. To pave the way for a broader-based recovery of the retail sector and the overall economy, it is essential for the community to strive towards more widespread vaccination,” the spokesperson added. The government started allowing fully vaccinated non-residents from medium and low risk countries to enter Hong Kong in August. Previously only residents were allowed to enter the city. Hong Kong’s economy saw a “more moderate” growth in the third quarter of this year as the GDP increased 5.4% compared with last year, as the local pandemic stabilized and global economic activities continued to revive, said the government report. The government disbursed the second consumption vouchers of HK$2,000 and HK$3,000 to around 810,000 eligible residents on …

Society

Despite Bright Figures in Food Delivery Industry, Staff are Facing Uncertainties

Every day, Edward Wong, 26, who is a freelance lifeguard and nursing assistant, spends a few hours delivering food in Tsuen Wan.  “I usually deliver food during my lunch time. Though the golden hours for taking orders are 7:30am-10am, 11:30am-1pm and 6:30pm-8:30pm, the frequency of orders highly depends on the location. For example, in Mong Kok and Sheung Wan, as long as you want, there will be orders to take,” said Wong, who works for both Foodpanda and Deliveroo, two of Hong Kong’s most popular food delivery services.  Wong is one of tens of thousands new food delivery drivers as demand for the service surged during the pandemic. Hongkongers are hungry. Hong Kong’s major delivery companies, Foodpanda, Deliveroo and Uber Eats, all reported significant increases in delivery demand.  A Deliveroo survey in January showed a 21% increase in spending and it predicted three-fourths residents are using the service more frequently.  Uber Eats said active users per month nearly tripled last year while total orders doubled, according to a Mingpao article. Foodpanda reported a 60% surge in orders during the first quarter of 2021. Companies are hiring thousands of delivery staff to meet the orders.  Last spring, the food delivery industry created 48,000 jobs, according to Hong Kong Business Times. But Wong said the number of delivery orders he gets has dropped because of a flood of new workers, and he plans to find another job soon.  “More people are becoming food delivery staff as they think the market is growing during the pandemic. However, the increase in staff is faster than the increase in orders in most areas,” said Wong, adding that his income has dropped by one-third from around HK$40,000 per month when he started.  While demand for food delivery surges, job positions open up. However, rising figures does …

Business

Hong Kong stock surges after holidays

Hong Kong stock closed more than one percent higher on Friday (October 15), as investors returned from holidays catching up with the global rebound driven by a good start of the corporate earnings season.  The Hang Seng Index soared 1.5 percent, or 368 points to 25,330 after recovering from a day low of  24,929 in early trade.  The Hang Sang TECH Index climbed 1.92 percent, or 119.16 points to 6,318.91 at the close with Tencent soaring 2 percent and Meituan increasing 4 percent.  The Hang Seng Index climbed 2 percent or 493 points this week, which was shortened to three trading days due to a typhoon and the Chung Yang Festival holiday. The US unemployment claims released overnight also encouraged stock buyers in Hong Kong. The number fell to 293,000 last week, the lowest level since the pandemic began.   The Shanghai Composite Index increased 0.4 percent or 368 points to 3,572.  In China, the restrictions of home loans in some of the biggest banks were removed on Friday, which also boosted Asian stocks.  Although the latest move is beneficial to developers, it is unlikely to solve their liquidity problems, head of China and Hong Kong research at CGS-CIMB Securities Raymond Cheng told Bloomberg.    Chinese property stocks bucked the market trend and were lower on Friday. China Overseas Land lost 3.57 percent and China Resources Land was lost 1.71 percent.   

Business

Guangdong businesses can apply for quarantine-free permits to enter Hong Kong

Employees of Guangdong companies can apply for quarantine-free business permits to visit Hong Kong starting today.  The online booking system has a daily quota of 1,000 for entry via the Shenzhen Bay Port or the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port.  This is on top of the existing scheme that allows non-Hong Kong residents from Guangdong province to enter the city without quarantine, which has been in effect since Sept. 15.  Macau was removed from exemption on Sept. 25 because of its latest Covid-19 outbreak. Business owners welcome the new travel scheme. “Because of Covid and the quarantine policies, we were unable to meet friends and families, and I could not meet my business partners in Hong Kong,” said Feng Minliang, who owns a fashion exhibition-organising company in Zhongshan in Guangdong. “I think the new policy is very useful,” said Feng. “Although it is only a temporary solution, it is definitely a good start to help the economy recover from Covid.” Meanwhile, foreign businesses have expressed frustration with the city’s “zero-Covid” strategy. The American Chamber of Commerce said their efforts in lobbying the Hong Kong government to reopen its borders with the rest of the world has been fruitless, as reported by Bloomberg. “We’re at the point where it just feels like we’re talking to a wall,” Tara Joseph, president of AmCham in Hong Kong, told Bloomberg. “The longer the closing of borders goes on, the more vulnerable many businesses are,” said Brian King, the Associate Dean and Professor of the School of Hotel and Tourism Management at Hong Kong Polytechnic University. “There will be job losses.” The number of headquarters and offices of mainland Chinese companies in Hong Kong increased by 22% to 1986 between 2019 and 2020, according to latest statistics from the Census and Statistics Department. Meanwhile, …

Business

Policy Address 2021: Northern NT 'metropolis' to see massive housing development, increase to 350,000 units

  • The Young Reporter
  • By: YANG Zhenfei、WANG Jingyan 王婧言Edited by: Vikki Cai Chuchu、Yoyo Kwok Chiu Tung
  • 2021-10-06

Chief Executive Carrie Lam Cheng Yuet-ngor announced a massive development plan, including  housing, commercial property, transportation infrastructure and technology companies, on the border with the mainland in her last policy address today. The Northern Metropolis Development Strategy will add around 600 hectares of land to the Northern District and Yuen Long District for housing and commercial use, including 165,000 to 186,000 additional housing units, she said, bringing the total number of units to 926,000 for around 2.5 million people.  “It is the most vibrant area in Hong Kong, where urban development and major population growth will occur over the next 20 years,” Lam said. The area is also expected to generate about 650,000 jobs, of which 150,000 will be IT related.  Some of the land to be developed is brownfield, undeveloped  land mainly used as open storage yards, warehouses and other industrial or rural workshops. The land-use efficiency of these brownfield operation sites is generally low.  Li Che Lan, professor in public policy at City University Hong Kong said land is one of the most pressing issues in Hong Kong. She said the development of the New Territories will alleviate the problems of high housing prices and a housing shortage in Hong Kong. Mee Kam Ng, Director of the Urban Studies Programme at Chinese University of Hong Kong, said that the development of New Territories Area can considerably increase land supply. Li said the government should emphasize environmental protection during the development. However, Ng said the development plan is more realistic and environmentally friendly, compared to Lantau Tomorrow Vision, which will be built on reclaimed land. “The New Territories is the largest area in Hong Kong with the most ample development space, which has rich cultural heritage and historic sites,” she said, expecting that the area can turn into a …

Business

Hong Kong companies see increased cyberattacks last year as more work remotely, survey finds

Hong Kong companies reported increased cyberattacks over the last year, including ransomware attacks, as more employees work from home, said US security service provider Barracuda at a press conference in Hong Kong today. In Hong Kong, 76% of companies saw at least one cyberattack compared to 81% globally, according to a survey of 750 companies around the world conducted by UK market researcher Vanson Bourne and commissioned by Barracuda. A total of 66% Hong Kong companies interviewed reported ransomware attacks last year, and those with remote staff were more likely to be attacked.   Remote work may contribute to an increased risk of network security breaches and being attacked, Conrad Lee, senior sales engineer of Barracuda, said at the press conference. He also said that phishing has become more specific as hackers take advantage of wide-spread discussion of social issues on the web. “For example, attackers can make use of the discussion of COVID-19 on the internet to send phishing emails to several accounts or induce people to download apps,” he said, adding that the improvement of attack software could also be a factor. Hong Kong is a “relatively safe city” in network security but remote work and the use of web-based applications, such as Google Docs and Zoom, is a concern, Mr. Lee said. All Hong Kong enterprises in the survey reported concerns regarding security risks caused by the use of web applications, and 98% worried about problems of data leakage and ransomware gaining access through unmanaged devices. In another survey, 42% of Hong Kong companies reported ransomware attacks over the last 12 months, an increase of 1%, according to research by the Hong Kong Productivity Council in August and commissioned by Hong Kong Telecom. “The remote work will probably become the new trend and continue even though the …

Business

Cathay Pacific’s H1 losses narrow on higher cargo yield and cost-cutting

Hong Kong flag carrier Cathay Pacific Airways Ltd (00293) on Wednesday reported a net loss attributable to shareholders of HK$ 7.57 billion for the first half of 2021, down by nearly a quarter from a year ago due to reactivated cargo business and decreased costs amid the impact of COVID-19. Tightening travel restrictions and quarantine requirements in Hong Kong and other main markets caused great challenges to the company, Cathay’s Chairman Patrick Healy said. “COVID-19 will continue to have a severe impact on our business until borders are reopened and travel restrictions are lifted,” Mr. Healy told a news conference after the results were announced, adding that the sudden increase in coronavirus infections in mainland China recently made the situation more unpredictable than previously. Cathay said its first-half losses narrowed 23.3% from a loss of HK$ 9.87 billion the same period a year ago. However, its total revenue for the six-month period dropped about 43% to HK$ 15.9 billion under the COVID-19. Shares of Cathay rose 3.55% to close at HK$ 6.42 after the results, outperforming a 0.2% gain on the benchmark Hang Seng Index. Passenger service remained badly affected in the first half of the year as the revenue plunged 93.2% to HK$ 748 million. Revenue passengers carried dropped 96.4% to 157,000, and passenger capacity decreased 85% compared to the prior year. Basic loss per ordinary share shrunk 46.5% to 122.1 HK cents, compared to 228.1 HK cents in the previous year, the company said in a statement. However, Cathay said it saw a 24.4% surge in cargo yield and only a 0.6% decrease in the revenue of cargo business during the first six months of 2021, which helped mitigate the company’s losses. Its total operating expenses decreased 39.2% compared to 2020, with a 33.4% drop in staff expenses …

Business

Hong Kong SME Leading Business Index hits 3-year high in Q3 as business confidence returns

  The overall Standard Chartered Hong Kong SME Leading Business Index rose by 4.4 to 46.6 in the third quarter this year, the highest since Q3 in 2018, as small and medium enterprises (SMEs) regained business confidence amid the gradual easing of the COVID-19 situation in the city, said the Hong Kong Productivity Council (HKPC). Edmond Lai, Chief Digital Officer of HKPC, said in a news conference on Tuesday, “The survey shows that SMEs are flexing their muscles to pick up their business as fast as possible by increasing investment and expanding staff size.”  Kelvin Lau, senior economist of Greater China at Standard Chartered Bank Hong Kong Limited, expected the positive momentum to remain intact in the second half of 2021, backed by further development in the IT industries and a recovery in the real estate sector. The overall index, which is compiled by HKPC and sponsored by the Standard Chartered Bank, rose for three consecutive quarters despite it was still below the neutral mark of 50.  All five component sub-indices were up and among which the “global economy” recorded the most significant growth to 52.8 from 43.6 a quarter earlier, said Mr. Lai. It was followed by recruitment sentiment of 50.9 and investment sentiment of 49.1. Talking about SME’s perspective and planning in response to the economic recovery this year. The business performance of information and communications was the best as 56% of the SMEs surveyed said that their business returned to the levels before the pandemic or fared better than that, while accommodation and food services were the most affected, with 81% of SMEs reporting a setback in business.   The retail industry index also recorded a surge, rising by 10.7 to 46.9 quarter on quarter due to the continued unwinding of social distancing measures since the first quarter …