Slowing China luxury spending cuts, Hong Kong Retailing

Slowdown in China dragged to reduce Hong Kong retail sales growth to the lowest pace since 2009 as a consumer to visit the mainland for the purchase of luxury goods such as jewelery and watches. Revenue rose 8.8 percent in May compared with the previous year to HK $ 36 billion ($ 4.6 billion), said the government yesterday. It was the smallest gain since September 2009, excluding seasonal distortions in January and February. The delay of the largest economy in Asia is Hong Kong, a record retail sales gains last year was only babbling. In neighboring Macau, a center for Chinese players, a report this week showed that casino revenues were below estimates for June, clouding the prospects for companies, including Sands China Ltd. "The consumer appetite for mainland visitors over the previous year has decreased due to the economic downturn," said Raymond Yeung, a Hong Kong-based economist at Australia & New Zealand Banking Group Ltd. data, a warning signal "for trade in Hong Kong". The average increase in retail sales figures to a gain of 11.4 percent in April and 9.4 percent estimate in a Bloomberg News survey of seven economists compared. Asian stocks rose today on speculation central banks do more to support the growth of the global economy, with the European Central Bank should lower their interest rates tomorrow. The MSCI Asia Pacific rose by 0.5 percent from 13.44 clock index in Tokyo. In Hong Kong, China Sands fell by 1.6 percent. "Spending Less" Caijuan Zhu, 38, said among the Chinese visitors, they reined in their spending in Hong Kong. A slowdown in residential construction activity has affected the construction of his family and is "definitely spend less," said Zhu, who is from Hangzhou in Zhejiang Province, said in the Port City Shopping Center in Tsim Sha Tsui yesterday. At the same time, the strength of the yuan and Hong Kong means lower tax rates that are attractive cosmetics and handbags, Zhu said, calculating that his family group had spent HK $ 100 000 for two days. Visitor numbers from China slipped to 2.5 million in May from 2.6 million in the previous month, according to the Hong Kong Tourism Board. "It's just simple logic that if you buy fewer tourists, the gold to have come to buy diamonds, you'd see pretty much poorer retail sales figure," said Lily Lo, a Hong Kong-based economist at DBS Group Holdings Ltd.. Casino Business In Macau, revenue rose 12 percent in June against the previous year, compared with an increase of 52 percent over the same month in 2011, according to data from the games and Inspection Coordination Unit. The last figure was below analysts' expectations of Citigroup Inc., Nomura Holdings Inc., Bank of America Corp. and the German Bank. The Chinese government is trying to limit spending on luxury goods of certain officials. The use ban shark fin at government expense may be made within three years, according to state media reported this week. In China, retail sales rose by 13.8 percent in May, the smallest increase since 2006, excluding seasonal distortions and partly to the decline in inflation. Companies like Nike Inc. reported a slowdown in the country rose by 8.1 percent gross domestic product, at least for almost three years, in the first quarter. China's service sector grew at the slowest pace in 10 months in June, according to an index released today by HSBC Holdings Plc and Markit Economics. Similar doctrines are due today for places, including India, Germany and Russia. Jewelry Sale In Hong Kong, sales of jewelry and watches increased by 3.1 percent in May compared to last year, the government said. Compared with an increase of 61 percent over the same month in 2011, previously published data show. Caroline Mak, president of the Hong Kong Retail Management Association said merchants offered discounts of up to 50 percent this summer and slow sales of goods such as furniture show a weak consumption of the residents, too. Revenue growth may be "not yet reached the ground," said Mak. Hong Kong government said that the forecasts of economic growth from 1 to 3 percent cut this year because the demand for exports. CEO Leung Chun-ying, of his five-year period from 1 July began, must help the economic expansion of the city to keep its commitments to the poor. Less optimism Mainland buyers "are not splashing out so much," Wong Wai Sheung, Chief Executive of Hong Kong Luk Fook Holdings listed jewelry retailer (International) Ltd, said at a conference on 28 June. "I'm not too optimistic about the jewelry market this year." Luk Fook share fell from about 38 percent this year compared to an increase of 7 percent for the benchmark Hang Seng. Tourists from the mainland have their "excessive" spending habits lost, Alan Chun, store manager said cheerfully Jewelry Co. Ltd., Queens Road, Central. "There are no more big purchases," said Chun, the products of jade and diamonds that sell for between HK $ 100,000 and HK $ 1,000,000. "There is still a regular basis - Jewelry $ 000 price to HK 30, the only way that people buy for fun." Comments from Hong Kong retailers surveyed yesterday contrast with the confidence of Prada SpA, the Italian fashion house and manufacturer of perforated veneer $ 2950 handbags, Chinese demand can be cared for by its luxury products. First quarter, the company has more than doubled. Elsewhere in the Asia-Pacific, Australia has today reported an increase in retail sales. Malaysia's exports rebounded more than economists May after a fall for two months to keep the size of the central bank, estimated interest rates unchanged.