[ET Net News Agency, 8 July 2020] Morgan Stanley said new Covid-19 cases in Hong Kong
may reduce local activity levels. From April to June, the research house observed
improving foot-traffic in shopping malls, offices, public transport and leisure
destinations.
The research house sees this "third wave" as a risk to a tourist recovery. As per
current measures, the 14-day quarantine for people travelling from Mainland China will
expire on 7 August.
Morgan sees the risk of a slower-than-expected recovery path for HK retail sales and
discretionary shopping malls', e.g., Wharf REIC (01997) and Hysan (00014), 2H rental
outlook. It expects 3Q (July-September) retail sales to decline 15% due to a gradual
tourist recovery and a lower base in 3Q 2019. HK's retail sales have narrowed from -42% in
March to -36% and -33% in April and May, respectively. (KL)