Hong Kong's Retailers Ride High on Shopping Boom
- Analysts warn higher interest rates will damp retail spending
- Mainland visitors to Hong Kong increase as yuan rises
Photographer: Billy H.C. Kwok/Bloomberg
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Fueled by a sizzling economy and a cheaper local currency, Hong Kong’s retailers are back in fashion with investors -- despite familiar warning signs for those who have been here before.
Consumer companies helped lead Hong Kong’s recovery from this year’s market rout. Cosmetics seller Sa Sa International Holdings Ltd. and jeweler Luk Fook Holdings International Ltd. are among the top gainers for local companies on the Hang Seng Composite Index, outperforming the broader gauge by more than nine times since the index hit its bottom this year on Feb. 9. An on-year jump in retail sales and an increase in shoppers from mainland China in the first quarter have powered earnings.