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     The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 1).
 
     The value of total retail sales in June 2023, provisionally estimated at $33.1 billion, increased by 19.6% compared with the same month in 2022. The revised estimate of the value of total retail sales in May 2023 increased by 18.5% compared with a year earlier. For the first half of 2023, it was provisionally estimated that the value of total retail sales increased by 20.7% compared with the same period in 2022.
 
     Of the total retail sales value in June 2023, online sales accounted for 6.7%. The value of online retail sales in that month, provisionally estimated at $2.2 billion, decreased by 3.3% compared with the same month in 2022. The revised estimate of online retail sales in May 2023 decreased by 3.7% compared with a year earlier. For the first half of 2023, it was provisionally estimated that the value of online retail sales decreased by 6.2% compared with the same period in 2022.
 
     After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in June 2023 increased by 17.5% compared with a year earlier. The revised estimate of the volume of total retail sales in May 2023 increased by 16.6% compared with a year earlier. For the first half of 2023, the provisional estimate of the total retail sales increased by 18.9% in volume compared with the same period in 2022.
 
     Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing June 2023 with June 2022, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 64.3%. This was followed by sales of other consumer goods not elsewhere classified (+20.5% in value); wearing apparel (+34.2%); food, alcoholic drinks and tobacco (+6.6%); commodities in department stores (+4.2%); medicines and cosmetics (+49.4%); electrical goods and other consumer durable goods not elsewhere classified (+11.3%); motor vehicles and parts (+24.9%); footwear, allied products and other clothing accessories (+26.1%); Chinese drugs and herbs (+17.1%); books, newspapers, stationery and gifts (+19.3%); and optical shops (+29.9%).
 
     On the other hand, the value of sales of commodities in supermarkets decreased by 3.5% in June 2023 over a year earlier. This was followed by sales of fuels (-19.1% in value); and furniture and fixtures (-6.4%).
 
     Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales increased by 5.3% in the second quarter of 2023 compared with the preceding quarter, while the provisional estimate of the volume of total retail sales increased by 4.2%.
 
Commentary
 
     A government spokesman said that the value of total retail sales continued to rise notably in June over a year earlier thanks to the recovery of inbound tourism and positive consumption sentiment.
 
     The spokesman added that the outlook for retail sales remained favourable. While visitor arrivals should increase further in the coming months, improved labour market conditions and the Government’s various measures to boost the momentum of the economic recovery, such as the disbursement of consumption vouchers, should render support to local consumption demand.
 
Further information
 
     Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for May 2023 as well as the provisional figures for June 2023. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first half of 2023 are also shown.
 
     Table 2 presents the revised figures on value of online retail sales for May 2023 as well as the provisional figures for June 2023. The provisional figures on year-on-year changes for the first half of 2023 are also shown.
 
     Table 3 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for May 2023 as well as the provisional figures for June 2023. The provisional figures on year-on-year changes for the first half of 2023 are also shown.
 
     Table 4 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.
 
     The classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
 
     These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. Data on retail sales are collected from local retail establishments through the Monthly Survey of Retail Sales (MRS). Local retail establishments with and without physical shops are covered in MRS and their sales, both through conventional shops and online channels, are included in the retail sales statistics.
 
     The retail sales statistics cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents. Hence they should not be regarded as indicators for measuring overall consumer spending.
 
     Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad. Please refer to the C&SD publication “Gross Domestic Product (Quarterly)” for more details.
 
     More detailed statistics are given in the “Report on Monthly Survey of Retail Sales”. Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080003&scode=530).
 
     Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk). read more

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) published today (August 1) the results of Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for the second quarter of 2023. According to the survey, the credit conditions of SMEs remained largely stable with little signs of prevalent stress.

     Regarding SMEs’ perception of banks’ credit approval stance relative to six months ago, excluding respondents who answered “no idea/don’t know”, 78 per cent perceived a “similar” or “easier” credit approval stance in the second quarter of 2023, down from 85 per cent in the previous quarter (Chart 1 in the Annex). 22 per cent perceived a “more difficult” credit approval stance, up from 15 per cent in the previous quarter. The perception of a more difficult credit approval stance may not necessarily reflect actual difficulties faced by SMEs in obtaining bank credit as the perception could be affected by a number of factors, such as media/news reports, business conditions and opinions of relatives and friends.

     Of respondents with existing credit lines, 82 per cent reported that banks’ stance on existing credit lines was “easier” or “unchanged” in the second quarter of 2023, compared with 79 per cent in the previous quarter (Chart 2 in the Annex). 18 per cent of the respondents reported a “tighter” banks’ stance on existing credit lines, compared with 21 per cent in the previous quarter. In this survey, a tighter stance on existing credit lines denotes a range of possible measures or arrangements, such as reducing unused and used credit lines, raising the interest rate, imposing additional collateral requirements, or shortening loan tenor. Therefore, respondents’ indication of banks’ stance on existing credit lines may not directly reflect banks’ supply of credit to SMEs. 

     The survey also gauged the results of new credit applications from SMEs. 4 per cent of the respondents reported that they had applied for new bank credit during the second quarter of 2023. Among the respondents who had already known their application outcomes, 87 per cent reported fully or partially successful applications, compared with 89 per cent in the previous quarter (Chart 3 in the Annex). 13 per cent reported unsuccessful applications, compared with 11 per cent in the previous quarter.

     Owing to small sample sizes of SMEs with existing credit lines (14 per cent of surveyed SMEs) and with new credit applications (4 per cent of surveyed SMEs) during the quarter, the results could be prone to large fluctuations, and hence should be interpreted with care.

About Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions
 
     In light of the importance of SMEs to the Hong Kong economy and concerns about potential funding difficulties facing SMEs over the past few years, the HKMA has appointed the Hong Kong Productivity Council (HKPC) to carry out this survey, starting from the third quarter of 2016. This survey is conducted on a quarterly basis, covering about 2 500 SMEs from different economic sectors each time. The results of this survey can help monitor the development of SMEs’ access to bank credit from a demand-side perspective.

     The results of this survey should be interpreted with caution. Similar to other opinion surveys, views collected in this survey may be affected by changes in sentiment due to idiosyncratic events that occurred over the survey period, which can make the results prone to fluctuations. Readers are advised to interpret the results together with other economic and financial information. In addition, views collected are limited to the expected direction of inter-quarter changes (e.g. “tighter”, “no change” or “easier”) without providing information about the magnitude of these changes.

     Detailed tables and technical information of this survey are published on the website of the HKPC (www.smecc.hkpc.org). read more

The following is issued on behalf of the Hong Kong Monetary Authority:

     Exchange Fund Bills tender results:
 

Tender date	:	August 1, 2023
Paper on offer	:	EF Bills
Issue number	:	Q2331
Issue date	:	August 2, 2023
Maturity date	:	November 1, 2023
Amount applied	:	HK$140,250 MN
Amount allotted	:	HK$53,999 MN
Average yield accepted	:	4.59 PCT
Highest yield accepted	:	4.67 PCT
Pro rata ratio*	:	About 42 PCT
Average tender yield	:	5.09 PCT
****************************
Tender date	:	August 1, 2023
Paper on offer	:	EF Bills
Issue number	:	H2360
Issue date	:	August 2, 2023
Maturity date	:	January 31, 2024
Amount applied	:	HK$48,067 MN
Amount allotted	:	HK$13,000 MN
Average yield accepted	:	4.56 PCT
Highest yield accepted	:	4.58 PCT
Pro rata ratio*	:	About 89 PCT
Average tender yield	:	4.73 PCT
****************************
Tender date	:	August 1, 2023
Paper on offer	:	EF Bills
Issue number	:	Y2392
Issue date	:	August 2, 2023
Maturity date	:	July 31, 2024
Amount applied	:	HK$23,150 MN
Amount allotted	:	HK$5,000 MN
Average yield accepted	:	4.50 PCT
Highest yield accepted	:	4.55 PCT
Pro rata ratio*	:	About 13 PCT
Average tender yield	:	4.74 PCT

 
*”Pro rata ratio” refers to the average percentage of allotment with respect to each tender participant’s tendered amount at the “highest yield accepted” level.
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     Hong Kong Monetary Authority tenders to be held in the week beginning August 7, 2023:
 

Tender date	:	August 8, 2023
Paper on offer	:	EF Bills
Issue number	:	Q2332
Issue date	:	August 9, 2023
Maturity date	:	November 8, 2023
Tenor	:	91 Days
Amount on offer	:	HK$56,235 MN
****************************
Tender date	:	August 8, 2023
Paper on offer	:	EF Bills
Issue number	:	H2361
Issue date	:	August 9, 2023
Maturity date	:	February 7, 2024
Tenor	:	182 Days
Amount on offer	:	HK$12,000 MN

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     The effective exchange rate index for the Hong Kong dollar on Tuesday, August 1, 2023 is 104.2 (up 0.3 against yesterday’s index). read more

     A new round of the Administrative Service Summer Internship Programme began in mid-May this year. The Secretary for the Civil Service, Mrs Ingrid Yeung, met and interacted with more than 50 university students participating in the programme today (August 1), encouraging them to apply for civil service positions such as the Administrative Officer (AO) post, for charting a brighter tomorrow for Hong Kong.
 
     During the gathering, Mrs Yeung listened to the interns share their experiences and achievements during the internship period, and encouraged them to strive to equip themselves to serve the community and contribute to the country, making reference to her own experience of over 30 years in the public service. Mrs Yeung said, “We are in great need of talent who love our country and Hong Kong, who dare to be innovative, who are willing to rise to challenges and who are dedicated to serving the public, to support the Government in its governance and to promote the development of Hong Kong at full speed on all fronts. This internship programme enables young people in Hong Kong to gain hands-on experience of working with serving AOs and learn about the operation of the Government and the mission and role of an AO, thus facilitating their future career planning. In fact, in the past five years, one in six newly recruited AOs has participated in the programme.
 
     “The Government will be recruiting a new batch of AO, Executive Officer II, Assistant Labour Officer II, Assistant Trade Officer II, Management Services Officer II and Transport Officer II in September. We have earlier announced a new initiative to allow all students who are pursuing a bachelor’s degree or equivalent qualification and graduating in 2024 or 2025 to apply for the above six grades. Recommended candidates will be granted a conditional offer and will join the Government upon graduation to work together to build a better Hong Kong. I encourage all students to proactively consider joining the civil service, especially the AOs, to make good use of your knowledge, talent and enthusiasm to contribute to the community.”
 
     The Civil Service Bureau (CSB) organises the Administrative Service Internship Programme every winter and summer. The CSB received around 270 applications for the summer programme this year, and among them selected 66 students studying in local, Mainland or overseas tertiary institutions as interns. They were assigned to some 20 bureaux and departments to handle duties comparable to those of an AO.
 
     AOs are professional public administrators who play a pivotal role in the civil service system. They are responsible for a diversified range of work including the policy formulation and implementation and resource allocation, co-ordination and promotion of district work, as well as the external promotion of Hong Kong. They are posted to different bureaux and departments at regular intervals with opportunities to sharpen their skills, accumulate experience and broaden their horizons in different areas of public policy work. The Government will separately announce details of the new round of the AO Recruitment Exercise in September 2023.

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