Chaos continues to reign in Hong Kong. As forecasted by international political analysts, the canceling of the law that would have allowed extraditions to China, wasn’t enough to calm the protestors’ rage. In fact, protests became violent encounters with police forces during the last few days.
Fitch Ratings lowered its evaluation of Hong Kong from AA+ to AA. Moreover: it lowered its forecast from “stable” to “negative”, raising doubts on the city’s governance based on the “one country, two systems”. According to Fitch, protests have caused “long term damages” for “the global perception of the city’s quality and efficacy of the governance system”.
July, the luxury segment fell apart
Sales of luxury goods in Hong Kong dropped by 24,4% in July. The city’s fashion institute provides the data. The numbers show that the drop isn’t just noisy, but also above the average consumption numbers, average of which was down by 11,4% on yearly base. Specifically, for fashion goods, clothing sales lost 13% and malls’ sales went down by 10,4%. Those suffering the most from the situations are smaller luxury boutiques.
CHANEL delays its show
CHANEL made the delay of its event official to the press, as it had anticipated. The presentation of the 2020 Cruise Collection, planned for November 6th in Hong Kong, was moved “to a later date” during a “more appropriate time”. When? “Depends on the situation”, said Bruno Pavlovsky, president of the brand’s fashion activities to WWD.
Image from Shutterstock