Hong Kong War epidemic: top executives slash salaries, big owners take the initiative to reduce rent

 Hong Kong War epidemic: top executives slash salaries, big owners take the initiative to reduce rent

Fran? OIS Henri Pinault, chairman of Kaiyun group, said that after the outbreak of the new coronavirus pneumonia, the sales revenue of its branches in the mainland and Hong Kong market dropped significantly, the passenger flow was scarce, and the business hours of the branches still in operation were greatly shortened.

However, in the face of the epidemic, Hong Kong has taken active measures in all walks of life.

Recently, famous leading listed companies in real estate, banking, catering and other industries in Hong Kong stock market, including Sun Hung Kai Real Estate (00016hk), HSBC Holdings (00005hk), and xufulou group (01978hk), have launched their own strategies to fight the epidemic.

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Work with employees to overcome difficulties and then take the initiative to reduce salary

The board of directors announced that Professor Huang Jielong, the groups executive director and chairman and chief executive officer, Mr. Taiping, and Ms. Gao Xiuzhi, the groups executive director and vice chairman, had taken the initiative to reduce their respective salaries by half from March 1, 2000, as a measure to overcome difficulties with the group and its employees. The company will continue to monitor the development of the epidemic and will make further announcements in due course.

On February 13, in response to the impact of the epidemic, Hong Kongs old catering listed company, xufulou group (01978hk) issued the above announcement, announcing that the chairman and vice chairman of the group took the initiative to reduce their salaries.

It has been previously reported that the aerosol emitted by hot pot has potential risk of spreading the new coronavirus pneumonia virus.

Novel coronavirus pneumonia responded to the 13 day response. In view of the recent outbreak of the new coronavirus pneumonia virus, the group has decided to suspend all its warm wild herbs and cattle Shabu restaurants since February 13, 2020, in order to release the recent public worries about the potential risk of aerosol infection caused by hot pot and contribute to the joint epidemic.

As a matter of fact, since the outbreak of the epidemic, shufulou group is not the first one in which executives of Hong Kong listed companies have taken the initiative to ask for a pay cut.

Previously, Cuihua Holdings (01314hk), which owns the famous Hong Kong Catering brand Cuihua tea restaurant, announced on February 7 that in order to adjust the cost of the company due to the continuous outbreak of new crown virus pneumonia, the salary of all directors and senior management of the company will be reduced by 30% from this month for three months. If the environment deteriorates, the company may further adjust the salary of the management.

Sasa International (00178hk), which is widely known to the Amy people in the mainland, also announced recently that the company will strengthen cost reduction measures to reduce losses, including reducing the number of stores in Hong Kong, reducing staff costs and inventory, and reducing the salary of all executive directors by 75% for three months, due to the continuous spread of the epidemic, which seriously affects passenger flow.

Conscience bank reduces customer burden

Analysts at Citigroup, a big foreign bank, said recently that after the outbreak, the bank had lowered its growth forecast for Hong Kongs economy this year to - 1.1%. In addition, considering the slowing growth of Hong Kongs banking revenue and the increase of loan losses, Citigroup also lowered its forecast of Hong Kongs local banking revenue in 2020 by 8% - 26%.

However, even in the face of such a difficult market environment, many banks, including HSBC, Bank of China Hong Kong (02388hk) and so on, have successively launched repayment without repayment of principal or similar plans for mortgage customers repayment difficulties in order to mitigate the impact of the epidemic on Hong Kongs economy and all walks of life.

On February 13, HSBC announced that in response to the new pneumonia epidemic, it will provide customers with a series of financial burden relief measures, including from 19 to the end of June this month, residential mortgage customers can choose to repay the interest but not the principal arrangement for half a year or one year; provide life insurance or medical insurance benefits, and set up up a maximum of 30000 Hong Kong dollars for individual customers in the aviation, hotel, catering and retail industriesu201c Support loan plan, with a repayment period of up to two years; customers can also apply for refund of default interest on credit cards and loans.

The epidemic has brought downward pressure on the Hong Kong economy, and we hope that the new measures announced by the company can help customers relieve financial pressure. Shi Yingyin, chief executive of HSBC Hong Kong, said after the announcement of the measures.

Time finance and economics learned that at present, including Standard Chartered group (02888hk), Hang Seng Bank (00011hk), China Construction Bank Asia and other banks in Hong Kong have also followed up, launched a plan similar to repay interest but not principal, hoping to help customers through the epidemic.

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Hongkong big owners reduce rent to reduce pressure on merchants

In order to control the spread of the epidemic, the Hong Kong SAR government has taken a number of measures to restrict the flow of people in and out.

Hong Kong used to rely on retail, tourism, real estate and finance as its pillar industries. Restricting the flow of people in and out of Hong Kong will inevitably affect the retail tourism industry. Mr. Guo Sizhi, chief executive of Hong Kong tycoon securities and asset management, told time financial analysis.

It is reported that Sasa international, the leading retail enterprise in Hong Kong, was affected by the epidemic. During the 7-day Spring Festival holiday, the companys retail sales in Hong Kong and Macao fell nearly 80% year-on-year, and the same store sales fell more than 75%.

In order to alleviate the business pressure of merchants, the Hong Kong Real Estate Construction Association recently issued an appeal to members to reduce rent.

After the appeal was issued, many members responded positively. Many big owners in Hong Kongs real estate industry announced that they would launch measures to ease the business pressure of merchants.

Sun Hung Kai Real Estate (00016hk) announced on the 13th that the company is currently actively understanding the business situation with its stores and merchants, and reducing the basic rent of February by 30-50% according to the situation of individual industries or merchants to merchants with difficulties in operation. The company initially estimated that most tenants can benefit.

A spokesman for Sun Hung Kai Real Estate said Wednesday that the outbreak has made Hong Kongs businesses difficult. The company believes that rent reduction can help Hong Kong stabilize its economy, ensure employment and share difficulties with tenants. In particular, the company focuses on the catering industry, which employs a large number of front-line employees. It hopes that the rescue measures will help the industry to reduce operating pressure.

Jiulongcang real estate recently announced that in order to help businesses fight the epidemic, its seaport city decided to reduce rent by 50% in February. In an internal email to tenants, Haigang city said it was implementing a series of measures to fight the epidemic to protect customers and tenants and would reduce rent by 50% in February.

MTR announced Monday that it is collecting data and will launch a rescue plan as soon as possible or will provide rent assistance to its mall merchants.

In addition, Hong Kong Swire Real Estate Co., Ltd. also said it would provide assistance to merchants in response to the epidemic.

At present, all walks of life in Hong Kong are actively fighting against the epidemic. Despite many difficulties, confidence and behavior are still there.

The management of xufulou group said Monday that it would closely monitor market conditions and adjust its response strategies in a timely manner, and committed to reopening the restaurants in due course.

Fran? OIS Henri Pinault said he believed that after the outbreak, the sales of luxury goods in the mainland would rebound strongly, and the company would invest funds to strengthen publicity. He remains optimistic about this quarters results and the long-term outlook.

Source: Time Financial Editor: Yang bin_nf4368