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The Hong Kong Trading Development Council held a seminar on Thursday on new consumption trends in the Greater Bay Area (GBA), guiding Hong Kong enterprises to seize opportunities in the GBA amid the city’s modest retail recovery. Howie Wong, General Manager of Kampery, a Hong Kong-based retailer and manufacturer, said that mainland China’s consumption momentum is robust, driven by highly convenient e-commerce. Therefore, it is a great opportunity for Hong Kong enterprises to expand their exports now. The latest data from the Census and Statistics Department shows that although Hong Kong’s total retail sales in November 2025 increased by 6.5% compared with the same period in 2024, reaching HK$33.7 billion, it is still much lower than the level before the COVID-19 pandemic. Wong added that some mid-tier, more value-for-money consumers may choose to spend in mainland stores, causing purchasing power to shift northwards. Sherriff Luk, professor of marketing at Emlyon Business School, cited research by Agent Ocean showing that mainland consumers are increasingly focused on product quality, safety, and health benefits. Hong Kong businesses need to understand the changes in the consumer base of the Greater Bay Area. If they stick to the old ways, they may not keep up with the trend. More specifically, Luk said that the pursuit of  “quality of life” is a new consumption trend and mainland consumers are shifting from price-driven to experience- and emotion-driven spending. On corporate strategy, Billy Cheung, founder and CEO of Sparkdemy, said that in an environment where social media content is highly saturated, brands need to enhance their exposure and content production capabilities.  “As long as you can be found in Search Engine Optimization searches, you win,” he added.  Regarding how Hong Kong enterprises can enter and capture the Greater Bay Area market, Cheung said that it is important to …

In 2025, the US Federal Reserve cut rates twice in the second half of the year. Under Hong Kong's dollar peg system, local rates followed the downward trajectory. For nearly four decades, Hong Kong has operated under a dollar peg system that ties the city's currency to the US dollar. This mechanism means local interest rates track Federal Reserve decisions, transmitting US monetary policy to the local economy.  AI Analogy: The Dollar Peg in Simple TermsImagine asking a fortune teller at Wong Tai Sin Temple about whether property prices will drop next year, only to receive the answer: “Everything depends on the mood of the US Federal Reserve.” In Hong Kong, even the gods of fortune sometimes have to check Powell’s latest speech before blessing your investments.   On Oct. 30, 2025, Federal Reserve Chairman Jerome Powell announced a 25 basis point cut to the federal funds rate to 3.75%-4.00%, marking the second rate cut of the year amid a sluggish job market. The same day after the rate cut, the Hong Kong Monetary Authority (HKMA) announced a reduction in its base rate to 4.25%. Under the linked exchange rate system, Hong Kong dollar interbank rates generally converge with US dollar interest rates, said Eddie Yue, Chief Executive at HKMA.  As the year 2025 unfolded, US President Donald John Trump challenged Powell’s January message of caution, pushing instead for faster rate cuts. The federal funds rate was cut twice, 25 basis pointsat a time, in September and October to the range of 3.75% to 4.00%.  Following HKMA’s adjustment, several major commercial banks such as HSBC, Hang Seng Bank, and Bank of China (Hong Kong) also lowered their prime lending rates accordingly. However, the banks' reductions were smaller than the Federal Reserve's cuts. Most major banks reduced their prime rates by …

At MegaBox shopping mall, Giuliana, a border collie known for the breed’s its intelligence and agility, sat quietly in a pet stroller while her owner, Gabriella Ng, bent over to straighten the hem of her dress, ensuring Giuliana could present her best performance during their walk show on Sep. 27. As a fashion designer and content creator, Ng took one month to design her and Giulian’s dress to match each other stylishly for the showcase during the Pet Walk Show 2025. “It cost about HK$10,000 for these two dresses,” said Ng, pointing at her piece. With an average cost of HK$700, Ng shared that Giuliana has around 20 items of clothing. According to Exhibition Group, the organiser of another pet show, 80.1% of about 1,000 respondents reported an increase in expenditure over the past 12 months, with average monthly spending reaching HK$2,086, up 6.3% from HK$1,962 the previous year. The proportion of people spending between HK$1,501 and HK$2,500 per month on pet care rose from 27.5% to 32.4%. Additionally, 79.1% of respondents expect their spending to increase within the next six to 12 months, over half anticipating at least a 10% rise. A trend toward premium, personalised pet care is redefining Hong Kong’s pet consumption economy as owners allocate larger  budgets into their “fur kids,” boosting the related products and services market. The global dog clothing market reached US$1.5 billion (HK$11.7 billion) in 2024, according to internal data and industry insights from 6Wresearch released in April. Tomas Yuen, a retired professor from the Department of Economics and Finance at Hong Kong Shue Yan University, noted the spending shift marks a broader change in consumption patterns. Most pet owners prefer high-quality and luxurious services and products for their “fur kids,” which could change the market’s business model. “They care about the …

Every time Liu Busi, a retail investor in the initial public offering (IPO) market in Hong Kong, checks the result of his new stock subscription, he feels a mix of uncertainty and excitement. Joining the IPO subscription game this year amid intense oversubscription, Liu has subscribed to 25 new listings and was allocated shares in 17 of them, including CATL and Zijin Gold, the two largest IPOs in 2025, with approximately HK$ 41 billion and HK$ 25 billion raised respectively. Of the 17 allocations, 14 have gained value after subscription, with his best performing IPO investment - Bloks, a Chinese toy company, having generated HK$ 11,059 for him as of Nov. 6. However, Liu noticed a sharp change in his subscription success rate after Hong Kong Stock Exchange's (HKEX) new reforms on IPOs in August.  The HKEX implemented new optimisation measures on stock allocation and subscription mechanisms, including stipulating that issuers must allocate at least 40% of the shares in the IPO to the book-building placement portion and introducing two public subscription mechanism options. Before the reform, Liu was allocated shares in 10 out of 13 subscriptions, a 77% success rate. After the reform, he could only secure allocations for 7 out of 12 subscriptions, a 58% success rate.  The city has seen 69 IPOs raise over HK$160.4 billion as of Sept. 30, a 183% surge compared with last year. According to Deloitte China's analysis, the city is projected to see over 80 IPOs raising HK$250 billion to HK$280 billion for the full year 2025. HKEX did not comment on the reduced success rate of subscriptions by retail investors when asked by TYFP reporters. In an earlier news release, Katherine Ng, HKEX Head of Listing, said the exchange “has sought to enhance the robustness of the IPO pricing and allocation …