Buoyant stock markets are inducing a “wealth effect” among Hong Kong people, boosting the prospects for increased consumer spending in the city, the Hong Kong Economic Journal reported.
Stronger spending by locals could offset the impact of a potential decline in the number of visitors from mainland China, analysts at Bank of America Merrill Lynch were quoted as saying.
Some restaurant operators have already reported a rise in business.
“Our revenue jumped 10 percent from a week ago,” Simon Wong, executive director at LHGroup, a traditional Chinese dim-sum restaurant chain, was quoted as saying.
Wong, however, said it may take another two to three months of uptrend in the stock market for investors to harvest enough gains to spend lavishly.
Kowloon Watch Co. general manager Kevin Wong said his stores have seen more Hong Kong locals visit the premises in recent months.
However, there is still someway to go before consumers really splurge on high-priced watches and other luxury goods, he said.
Translation by Vey Wong
[Chinese version 中文版]
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