What: Wharf Real Estate Investment Company Limited (Wharf REIC) has announced an expected loss of not less than HKD 900 million (USD 115 million) for the first half of 2024, compared to a profit of HKD 1.805 billion the previous year.

Why it is important: This significant loss highlights the challenges faced by Hong Kong's retail sector due to a decline in mainland tourist spending, impacting the overall economic recovery of the region post-reopening.

Wharf REIC, a major Hong Kong shopping mall operator, anticipates a substantial loss of at least HKD 900 million for the first half of 2024, a stark contrast to the HKD 1.805 billion profit recorded last year. The downturn is attributed to a fall in the value of investment properties and a decrease in spending by mainland tourists, which stalled retail sales recovery soon after border reopenings in early 2023. Despite this, Wharf REIC maintains a healthy financial position. Additionally, its sister company, The Wharf, has projected a loss between HKD 2.5 billion and HKD 2.8 billion for the same period, marking a significant swing from a profit of HKD 696 million previously.

Hong Kong mall giant swings into the red as mainland shoppers stay away