Hang Lung Properties Vice Chair on 1H Results

The video discusses the impact of currency devaluation on a leasing business, highlighting a 13% increase in RMB terms but only 6% in actual growth. It covers business performance, noting growth in luxury leasing and challenges in the mass market. The speaker shares insights from a road trip across Chinese cities, observing strong retail sales despite market pessimism. Residential markets face challenges, especially in second-tier cities. The company is cautious but open to acquisitions, considering interest rate impacts. Hong Kong shows signs of recovery, with increased commercial rents and foot traffic.

What was the impact of currency devaluation on the leasing business?

• It had no impact on the leasing business.

• It increased the leasing business by 13%.

• It reduced the leasing business growth to 6%.

• It caused a decline in the leasing business.

What was observed during the road trip across Mainland China?

• Retail sales and foot traffic were weak.

• Luxury segment showed strong performance.

• Mass retail was outperforming luxury.

• Shopping malls were mostly empty.

What challenge is faced in the residential market?

• Softness in second-tier cities.

• Rapid growth in residential sales.

• Overpricing in first-tier cities.

• High demand in second-tier cities.

How has the company responded to market uncertainties regarding acquisitions?

• They are cautiously looking for good opportunities.

• They are selling off existing assets.

• They have stopped looking for acquisitions.

• They are aggressively acquiring new assets.

How have interest rates affected the company's borrowing strategy?

• They have issued dim sum bonds to lower costs.

• They have stopped borrowing altogether.

• They have increased borrowing in Hong Kong.

• They have reduced borrowing in Mainland China.

What is the current trend in commercial rents in Hong Kong?

• They have fluctuated unpredictably.

• They have remained stagnant.

• They have increased for the first time since pre-COVID.

• They have decreased significantly.

What is the status of foot traffic in Hong Kong?

• It is declining steadily.

• It has not yet recovered.

• It is back to pre-COVID levels.

• It is only strong in tourist areas.