Hong Kong, China, Adriel Chen discussed on Bloomberg Daybreak Asia

Automatic TRANSCRIPT

Anything Spotify is fine If you see a bunch of artists lined up behind him and expressed concern then it becomes a real crisis As for the fat hashtag Spotify movement Luca says we'll have to watch In San Francisco I'm at Baxter at this is Bloomberg We're walking in the free world by him Hey thank you 8 minutes past the hour Let's get to our guest adriel Chen vice chair of hanging properties So the earnings were positive Net income up 2.59 billion Hong Kong dollars That's much better than the loss in the previous year and it looks like you're still banking on the mainland over Hong Kong performance Outline how you saw this prior period Thanks Brian and good morning Juliet So China remains the mainland of China remains very strong for us I think towards the second half of last year there was a little bit of concern is the market softening up a little bit But throughout the end of the year we found that consumer strength in Mainland China is still very strong So this is driven primarily for us by the high end So luxury brands LV Gucci These are what are really outperforming in the market right now In some of our best malls sales over 2021 were up almost double of 2020 and 2020 as we know strange year but it actually ended up performing very well for us So a high base but still very solid growth in 2021 Mainland China I think continues to be the engine for us Hong Kong We're very happy that things seem to have flattened out It seems that the market has found its bottom but at the same time with the 5th wave of army cron in Hong Kong we're still waiting to see how that pans out So for now really betting big on Mainland China Yeah and not only that in terms of the new wave but also the COVID zero policy and the fact that you've got all these businesses potentially moving from Hong Kong expats leaving two what kind of impact is the COVID zero strategy having on your business So yesterday just after our press release our announcements the government did announce a slight relaxation I think that they continue to try to take a more dynamic approach I feel for them because it's not an easy thing to manage but clearly the business is especially the international businesses with lots of expats in Hong Kong or suffering The inability for people to visit This is definitely had an impact on the large international companies At the same time for us it doesn't have it doesn't seem to have that much impact in Hong Kong We do a mix of retail and offices and the users of these spaces are not always these international travelers So in Hong Kong the impact of this zero COVID strategy has not been particularly negative That being said of course with this wave with lockdowns of eateries that does have an effect on our day to day tenants though Yeah it seems like oma cron is really taken hold in China and has advanced more and even delta variant It seems like it's setting up for this period to be tougher than last year How concerned are you And if not that what is your biggest challenge Without a doubt it does seem like it's been blowing up a little bit bigger and faster than Delta omicron I mean however I'm calling from Shanghai And when I go out in Shanghai restaurants eateries malls everything is still humming along So it's difficult I think the populace here really has trust in the government and how they'll have handled this The government has done it before in the multiple outbreaks in the end of 2021 And so there is a level of confidence that being said of course people are still very strict about masks and.

Coming up next