Finance and economics
Hong Kong’s unemployment rate drops in 9 months trend
- 2023-02-17
- Business
- By: Yuchen LI、Yuhe WANGEdited by: Bella Ding、Rex Cheuk、Man TSE
- 2023-02-17
Hong Kong’s seasonally adjusted unemployment rate edged lower from 3.5% in the period from October to December 2022 to 3.4% between December 2022 and January 2023, recording the ninth consecutive improvement from last year. The underemployment rate dropped 0.1 percentage points to 1.4% from November 2022 to January, with the number of the underemployed persons decreasing by 3,200 to 52,100, while the number of unemployed decreased by 7,600 to 118,400. The unemployment rate of the retail sector and the food and beverage sectors declined by 0.4 and 0.1 percentage points to 4.2% and 4.9% respectively. The unemployment rates of other sectors line lined in general. Hong Kong's seasonally adjusted unemployment rate has kept a steady downward trend since May 2022 as the city recovers from the epidemic alongside border reopening between Hong Kong and China, said Chris Sun Yuk-han, the Secretary for Labor and Welfare. “The unemployment and underemployment situation continued to improve,” said Sun. Amid the fifth wave of COVID-19 pandemic in early 2022, retail, accommodation and food service was the most affected industry, with its unemployment rate hitting 10% in the period of February to April 2022, according to the Census and Statistics Department. Vera Yuen Wing-han, an economics lecturer at the University of Hong Kong, said that Hong Kong's service industry had to shut down extensively before border opening as the consumption level was low. Moreover, Hong Kong's local labour market has been troubled for a long time by the shortage of labour, especially in the service industry, Yuen added. “The recruitment advertisements hang all the time but few people apply for the vacancies,” Roy Chan, the human resource manager of 616 Catering Management Limited said. The staff shortage in the catering industry is a common phenomenon especially for the full-time staff. “We prefer the full-time staff …
Hong Kong stock market plunges as Sino-US tension rises
- 2023-02-06
- Politics
- By: Yixin Gao、Kin Hou POONEdited by: Bella Ding、Mei Ching LEE、Zimo ZHONG
- 2023-02-06
Hong Kong stocks slumped on Monday amid growing concerns over the spy balloon incident between China and the US and the bet on Chinese full border reopening. The Hang Seng Index opened 311 points lower this morning and dropped 2.1% to 21,222 at the close of Monday trading with a HK$136.02 billion turnover. The Hang Seng Technology Index went down by 3.7%. The Hang Seng China Enterprises Index dipped by 2.7%. A US military fighter jet shot down a suspected Chinese spy balloon on Saturday, while the Chinese government said it was a stray civilian airship blown off course. “The Hang Seng Index had been rising since November last year, once up over 8,000 points. Therefore, the market is sensitive to adverse news. Friday's incident about China's ‘spy balloon’ made investors feel uneasy, leading to a fall in today’s stock market,” said Sam Chi-yung, Strategist at Patrons Securities limited. Bilibili(09626) decreased by 5.4% to HK$186.6. Meituan(03690) dropped 5% to HK$164.1. Tencent(00700) slid 2.1% to HK$376.8. Southbound Stock Connect trading funds, however, bucked the trend, buying a net of nearly HK$2 billion for the day. The Chinese authorities announced on Feb. 3 that mainland China would fully reopen the borders with Hong Kong and Macau from today. The travel and tourism industry performed a 0.5% increase under the overall negative performance of the stock market, according to AASTOCK. Feiyang Group(01901) increased by 10.1% to HK$1.31. Guangdong Nan Yue Logistics Company Limited(03399) went up 5.5% to HK$1.15. Global MasterMind Securities Limited(08063) rose 4.6% to HK$0.068. “There will be more opportunities for both personal and corporate business travel. With relatively weak business operating dynamics in the previous three years affected by COVID-19, the industry should see a more pronounced upturn in the future,” said Harris Wan Kong-sing, Vice President of iFast Global Market.
HSI retreats from 11-month-high as mainland stock market resumes
- 2023-01-31
- Business
- By: Lok Yi CHU、Ho Yi CHEUNGEdited by: Nga Ying LAU、Bella Ding
- 2023-01-31
Hong Kong stocks pulled back on the third trading day of the Year of the Rabbit, also the settlement date of HSI futures, after a week-long Lunar New Year break in mainland China. The Hang Seng Index opened 109 points lower this morning and dipped 2.7 percent, or 619 points, to 22,069.73 at the close of Monday trading, with a turnover of 203.25 billion. “The Hang Seng Index will experience profit-taking after hitting an 11-month-high, also the futures index is settled on today, which caused market fluctuations,” wrote Sam Chi-Yung, a Certified Financial Consultant of Patrons Securities, on Facebook. CRIC Securities Company Limited announced yesterday that the transaction volume of mainland real estate during the Lunar New Year fell by 14 percent year-on-year, leading to weakness in mainland real estate stocks. Country Garden (2007) slumped 8.3 percent to HK$2.97 while Longfor Group (0960) declined 5.7 percent to HK$26.60. The Hang Seng Mainland China Property Index overall downed 4.7 percent. Property management stocks fell correspondingly. Country Garden Services (6098) slid 5.92% to close at HK$21.45. The Hang Seng Technology Index dropped 4.8 percent amid profit-taking after two consecutive days of rising. Alibaba Health Information Technology Ltd. (0241) sank 8.0 percent to HK$7.05, while Alibaba (9988) and Tencent Holdings Ltd. (0700) dropped 7.1 percent to HK$109.00 and 6.7 percent to HK$387.20 respectively. The Hang Seng China Enterprises Index decreased by 3.6 percent. Mainland enterprise stocks Haidilao (6862) and Sands China Limited (1928) decreased by 6.85 percent at HK$21.75 and 5.56 percent at HK$28.85 respectively. The blue chips backed the stock market. A CICC research report, based on the data provided by Informa Financial Intelligence Company EPFR, revealed that overall net inflows of the overseas active funds into Hong Kong Stock market have been recorded for three consecutive weeks as …
Chinese cross-border investors suffer losses as Futubull and Tiger Brokers face corrective measures
- 2023-01-28
- Business
- By: Jiaxing Li、Lok Yi CHUEdited by: Bella Ding、Yuhe WANG、Le Ha NGUYEN
- 2023-01-28
Investors in China have been in a weak market sentiment since China’s securities regulator ordered the two major online brokerages Futubull and UP Fintech, also known as Tiger Brokers in Asia, to rectify their business last month. Futu Holding Limited and UP Fintech Holding Limited have conducted cross-border securities businesses involving domestic investors without regulatory consent and will be banned from opening new accounts and soliciting new clients, said China Securities Regulatory Commission in a statement on Dec 30, 2022. Existing Chinese investors can still trade via the brokerages but additional fund transfers through unlawful channels to their accounts will be banned. “The sudden regulation brought uncertainty to my wealth, and I therefore chose to move my funds and not to use these two platforms anymore,” said Allen Liu, a two-year user of Futubull and Tiger Brokers, adding that the government action affected his investment portfolio and caused some losses. Ge Chenming, a cross-border securities investor on Futubull and UP Fintech, said that he suffered a sudden loss of CN¥160,000 (about HK$185,000) because of the fall in the US and platform stocks after the regulation. “After the shut-down of these platforms, I have had difficulties buying US stocks because my English is poor and foreign platforms are hard for me to understand, ” Ge added. Shares of Futu and UP Fintech, both listed on Nasdaq, slumped around 30% to a one-month low at US$37.84 (HK$296) and US$3.20 (HK$25), respectively, one day after the announcement of CSRS. As of 26 Jan, the prices of Futu and UP Fintech have increased by more than 44% and 31% year-to-date, though both prices are still below the levels before the regulation. CSRC said it was illegal for Futubull and Tiger Brokers to provide investors with overseas stock speculation services, including stock trading on Hong …
Hong Kong retail sales continue to rise supported by consumption voucher, government says
- 2021-11-02
- Business
- The Young Reporter
- By: WANG Jingyan 王婧言Edited by: Vikki Cai Chuchu
- 2021-11-02
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 …
Despite Bright Figures in Food Delivery Industry, Staff are Facing Uncertainties
- 2021-10-21
- Society
- The Young Reporter
- By: Kylie WongEdited by: Vikki Cai Chuchu
- 2021-10-21
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 …
Second batch of consumption vouchers spurs shopping spree
- 2021-10-01
- Society
- The Young Reporter
- By: Kate ZhangEdited by: LAM Tsz Yau
- 2021-10-01
More than 5.5 million eligible Hong Kong residents could get a second batch of consumption vouchers today. It is part of a government incentive to kick start the economy amid the Covid pandemic. A total of $5000 will be given to those who qualify. Hongkongers who registered for the vouchers using their Octopus cards could get their second batch of HK$2,000 today. A third batch of HK$1,000 will be handed out from December 16. Those who registered using AlipayHK, Tap & Go, or WeChat Pay HK could get all of the remaining HK$3,000 of the handout. Jessie Wong Hok-ling, head of the Budget and Tax Policy Unit of the Financial Secretary's Office, said on a radio program on RTHK today that the distribution has gone very smoothly, and all of the vouchers were issued before 1 am. Shoppers lined up at convenience stores this morning to collect their consumption vouchers through Octopus. They could also get the vouchers through the Octopus app, octopus service points and subsidies collection points in designated MTR stations. "I think it's very convenient to receive and use consumption vouchers," said Law Gaa-lok, who got the HK$2,000 voucher at a convenience store in Mong Kok. "I mainly spent the vouchers on buying daily necessities," he added. Many shopping malls tried to attract customers by holding consumption voucher events. By noon, a long line of customers at APM mall in Kwun Tong were queuing up for bargains. Among them Kelly Chan, who went there with her daughter l to buy clothes.“We happened to encounter the mall event,” she said. “The event is so favourable.” Linda Lam, who worked at Hey Candy in APM, said the voucher scheme has helped to boost business. “People's mood is better after getting the subsidies, so consumption will increase naturally," she said. …
Job seekers find it tough despite falling unemployment
- 2021-07-20
- Society
- The Young Reporter
- By: WANG Jingyan 王婧言Edited by: Jenny Lam
- 2021-07-20
More than 1,800 jobs are on offer at the “Embracing New Opportunities” job fair. Some 40 companies from different industries are taking part in the two-day event. There are vacancies for store clerks, security guards, programmers, nurses and much more, according to the Labour Department. The fair is held by the Labour Department and the Hong Kong Federation of Trade Unions at MacPherson Stadium in Mong Kok. Ms Au, who was not willing to reveal her full name, was one of the representatives for Mou Mou Club Limited and Gyukaku Yakiniku Restaurant, offering opportunities for waiters and cooks. She said they have received more applications this year than in the past few years. “Competition for jobs (in the catering industry) has become more and more intense, so people are now seeking jobs in other industries,” she said. Most of the vacancies at the fair offer monthly salaries from HK$10,000 to HK$20,000. Around 81% are full-time jobs, nearly 98% require senior high education or below and 61% do not ask for relevant job experience. Ms Cu, who was not willing to reveal her full name, is among the job seekers. “ I used to work in the retail industry, but I have been unemployed since the beginning of this year because of COVID-19,” she said. Mr Ho, who didn’t provide his first name, also lost his job when the company he worked for downsized during the pandemic. “I used to be a civil engineer, but most of the jobs ( at the fair) are for clerical work, such as office assistants, and I’m not suited for that,” he said. He added that most of the jobs at the fair didn’t require specific knowledge, and he was worried that means he can easily be replaced. CJ was a …
China’s GDP growth slows to 7.9% in Q2 after strong economic recovery from COVID in Q1
- 2021-07-15
- The Young Reporter
- By: WANG Jingyan 王婧言Edited by: Alison Leung
- 2021-07-15
China’s economic growth slowed to 7.9% in the second quarter year-on-year from a record growth the previous quarter, showing increasingly steady trends in the second-half year, the National Bureau of Statistics of China said on Thursday. The gross domestic product (GDP) figure came in below the median forecast of 8.1%, polled by Reuters, and was lower than the 18.3% year-on-year increase in the first three months of 2021, which was boosted by the low base due to the pandemic. “The country’s economy continues to recover steadily with production and demand picking up, employment and prices remaining stable,” said Liu Aihua, Director of the National Economic Comprehensive Statistics Department of the bureau, at today’s news conference. She said market expectations were positive and major macro indicators were within the reasonable range. Industrial production increased 8.3% year-on-year in June, and 15.9% in the first half of the year compared to the same period last year. Retail sales rose 12.1% in June from a year earlier and grew by 23% in the January-June period. Fixed-asset investment also grew 12.6% year-on-year in the first half of the year, and the jobless rate decreased 0.5% year-on-year to 5% this June, but Ms Liu predicted at the conference that the rate may increase as an estimated of 9.09 million university graduates would flood into the job market this year. “The pandemic is not yet stable globally, and the recovery of the domestic economy is not yet even,” said Ms Liu at the conference, adding that China's economy would sustain a steady recovery in the second half of the year despite facing such difficulties. She estimated that increasing domestic demands, enhancing market confidence, more policies to help small and medium-sized enterprises, and global economic recovery would further support the economic recovery. The Chinese government announced several measures …
Hong Kong IPO market continues to thrive, ranks top three
- 2021-06-18
- The Young Reporter
- By: WANG Jingyan 王婧言Edited by: Alison Leung
- 2021-06-18
Hong Kong’s initial public offering (IPO) market is expected to raise more than HK$ 400 billion this year and rank third in the global league, with more new economy companies coming to list from Mainland China, according to the National Public Offering Group of Deloitte China. In the first half of this year, 46 IPOs raised a total of about HKD 209.7 billion in Hong Kong, which decreased 22% in the number of new listings but increased 138% in the IPO proceeds compared to that in the same period last year. In general, Hong Kong IPO market performed well in the first half of 2021,” said Edward Au, Deloitte South China Region managing partner. “We are confident that HKEX will get the third place of top global new listing markets in the coming half year and continue its strong performance,” he added. In terms of total proceeds raised, Nasdaq and the New York Stock Exchange took the lead in the first half year, followed by the Hong Kong Stock Exchange and the Shanghai Stock Exchange. Hong Kong ranked the second largest IPO market in the world in 2020, after Nasdaq, and raised about HK$ 398 billion. Among the top ten IPOs in the world in the first half of 2021, four were listed in Hong Kong and all of them were innovative and technologies companies, it said. Healthcare and medical industries and property industries continued to dominate Hong Kong’s new listing market. On the first day of trading, the three best performers were from the new economy sector, with two in the health industry and one in TMT, while the three worst performers were from the property sector. “Investors have shown more acceptance for new economy companies, but at the same time, they are less optimistic about traditional and capital-intensive …