(Yicai Global) July 20 -- Hong Kong's big four jewelers, Chow Tai Fook, Tse Sui Luen, Chow Sang Sang and Luk Fook, have all reported declines in earnings recently in an indication that the jewelry retail industry is being hit hard by a drop in the number of mainland tourists.
Chow Sang Sang Holdings International Ltd. [HKG:0116] expects profits to fall between 50 and 60 percent in the first half of the year. Chow Tai Fook Jewellery Group Ltd.'s [HKG:1929] sales fell 11 percent in the third quarter that ended on December 31, 2015. Luk Fook Holdings (International) Ltd.'s [HKG:0590] revenue for the 2015 financial year ending March 31 was down 11.9 percent year-on-year, and gross profit slipped 15.1 percent. Profits for Tse Sui Luen Jewellery (International) Ltd. (TSL) [HKG:0417] shrank 40 percent in 2015.
Falling retail sales, a weakening property market and fewer tourists from mainland China are weighing heavily on the city's economy. Hong Kong tycoon Mr. Li Ka-shing raised the alarm earlier this year, saying it is "the worst I've seen in 20 years." Financial secretary Mr. John Tsang agrees with him. "I've been saying that for some time," he said last month.