Editorial | Hong Kong retail sector must innovate to survive
- Return of mainland tourists does not mean business as usual for city retailers, who must think outside the box as circumstances change
Hong Kong’s retail sector is showing green shoots. Empty commercial space has fallen to a three-year low of 9 per cent in the second quarter.
The hardships endured because of the pandemic may hopefully be in the past. But those in the industry shouldn’t expect miracles.
A number of factors work in the industry’s favour. Large banks have been more willing to make loans.
Commercial Data Interchange, a platform launched by the Monetary Authority, has enabled banks to access information and make loan decisions quickly, especially for small and medium -sized enterprises (SMEs).
A multi-year government programme has helped guarantee loans for SMEs. Last year, HSBC, the biggest lender in Hong Kong, launched a HK$40 billion financing scheme for SMEs with cash rebates to encourage them to hire staff.
Despite the positive signs, there won’t be a V-shape recovery for the retail property market. The sector has fundamentally changed since the anti-government riots in 2019 and then the pandemic.