The Census and Statistics Department (C&SD) released the latest figures on retail sales today (August 30).
    
     The value of total retail sales in July 2019, provisionally estimated at $34.4 billion, decreased by 11.4% compared with the same month in 2018. The revised estimate of the value of total retail sales in June 2019 decreased by 6.7% compared with a year earlier. For the first seven months of 2019 taken together, it was provisionally estimated that the value of total retail sales decreased by 3.8% compared with the same period in 2018.

     After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in July 2019 decreased by 13.0% compared with a year earlier. The revised estimate of the volume of total retail sales in June 2019 decreased by 7.6% compared with a year earlier. For the first seven months of 2019 taken together, the provisional estimate of the total retail sales decreased by 4.4% in volume compared with the same period in 2018.
 
     Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing July 2019 with July 2018, the value of sales of jewellery, watches and clocks, and valuable gifts decreased by 24.4%.  This was followed by sales of wearing apparel (-13.0% in value); medicines and cosmetics (-16.1%); commodities in department stores (-10.4%); food, alcoholic drinks and tobacco (-2.3%); other consumer goods, not elsewhere classified (-1.4%); electrical goods and other consumer durable goods, not elsewhere classified (-17.4%); motor vehicles and parts (-5.8%); fuels (-0.1%); footwear, allied products and other clothing accessories (-10.1%); books, newspapers, stationery and gifts (-6.0%); furniture and fixtures (-8.7%); Chinese drugs and herbs (-5.8%); and optical shops (-17.8%).
 
     On the other hand, the value of sales of commodities in supermarkets increased by 1.0% in July 2019 over a year earlier.
 
     Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 4.8% in the three months ending July 2019 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 5.5%.
 
     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.
 
Commentary
 
     A Government spokesman said that retail sales worsened further to post a double-digit year-on-year fall in July, reflecting the weak local consumer sentiment and significant disruptions to inbound tourism and consumption-related activities arising from the recent local social incidents.
 
     The spokesman further pointed out that retail sales will likely stay weak in the near term, as escalated US-Mainland trade tensions and subdued economic conditions continue to dampen consumer sentiment. The situation may even deteriorate further if the social incidents involving violence do not come to a stop. The Government will closely monitor the situation.

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 June 2019 as well as the provisional figures for July 2019. 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 seven months of 2019 taken together are also shown.
 
     Table 2 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for June 2019 as well as the provisional figures for July 2019. The provisional figures on year-on-year changes for the first seven months of 2019 taken together are also shown.
 
     Table 3 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.
 
     More detailed statistics are given in the "Report on Monthly Survey of Retail Sales". Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp320.jsp?productCode=B1080003). Alternatively, the historical series of retail sales statistics can be downloaded in the form of a statistical table at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp320.jsp?productCode=D5600089).
 
     Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of the C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk).

     The Government announced today (August 30) its financial results for the four months ended July 31, 2019.
 
     Expenditure for the period April to July 2019 amounted to HK$168.8 billion and revenue HK$135.3 billion, resulting in a cumulative year-to-date deficit of HK$27.2 billion after receipt of net proceeds of HK$7.8 billion from issuance of green bonds under the Government Green Bond Programme (Green Bond) and repayment of institutional notes of HK$1.5 billion.
 
     A government spokesperson said that the cumulative year-to-date deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year.
 
     The fiscal reserves stood at HK$1,143.7 billion as at July 31, 2019.
 
     Detailed figures are shown in Tables 1 and 2.
 
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
 

Government Debts as at July 31, 2019 (Note 3)
    HK$7,824 million
Debts Guaranteed by Government as at July 31, 2019 (Note 4)
    HK$26,545.2 million

TABLE 2. FISCAL RESERVES
 

Notes:

1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at July 31, 2019, was HK$138,793 million.

2. Includes transactions with the Exchange Fund and resident banks.

3. These were the green bonds of US$1,000 million (equivalent to HK$7,824 million as at July 31, 2019) which were denominated in US dollars with maturity in May 2024. They do not include the outstanding bonds with nominal value of HK$95,718 million and alternative bonds with nominal value of US$3,000 million (equivalent to HK$23,472 million as at July 31, 2019) issued under the Government Bond Programme (with proceeds credited to the Bond Fund). Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$11,718 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$2,848 million were repaid upon maturity on August 12, 2019; bonds with nominal value of HK$22,281 million and alternative bonds with nominal value of US$2,000 million (equivalent to HK$15,648 million as at July 31, 2019) will mature within the period from September 2019 to July 2020 and the rest within the period from August 2020 to March 2034.

4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the Special Concessionary Measures under the SME Financing Guarantee Scheme launched in 2012, and a commercial loan of the Hong Kong Science and Technology Parks Corporation.

5. Includes HK$219,730 million being the balance of the Land Fund held in the name of "Future Fund" as from January 1, 2016, for long-term investments initially up to December 31, 2025. As from July 1, 2016, the Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.
 

The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA) announced today (August 30) that the total assets of the Exchange Fund amounted to HK$4,137.6 billion as at July 31, 2019, HK$0.7 billion higher than that at the end of June 2019. Foreign currency assets increased by HK$19.4 billion while Hong Kong dollar assets decreased by HK$18.7 billion.
 
     The rise in foreign currency assets was mainly due to an increase in unsettled purchases of securities and income from foreign currency investments.  The decline in Hong Kong dollar assets was mainly due to withdrawals of placements by Fiscal Reserves and the fall in market value of Hong Kong equities.
 
     The Currency Board Account shows that the Monetary Base at the end of July 2019 was HK$1,633.1 billion, decreased by HK$1.4 billion, or 0.1 per cent, from the end of June 2019.  The decline was mainly due to a decrease in the outstanding amount of Certificates of Indebtedness.
 
     The amount of Backing Assets increased by HK$2.2 billion, or 0.1 per cent, to HK$1,818.6 billion.  The increase was mainly attributable to income from investments, which was partly offset by the redemption of Certificates of Indebtedness.  The backing ratio increased from 111.13 per cent at the end of June 2019 to 111.36 per cent at the end of July 2019.
 
****************************************
       
     At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month.  Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS).  The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency.  For the month of August 2019, the scheduled dates for issuing the press releases are as follows:
 

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

     The Hong Kong Monetary Authority (HKMA) released today (August 30) the analytical data on the Hong Kong Special Administrative Region's foreign currency reserves and foreign currency liquidity as at the end of July 2019 (Annex). These data are published monthly in the Template on International Reserves and Foreign Currency Liquidity in accordance with the International Monetary Fund's Special Data Dissemination Standard.
 
****************************************************************
 
     At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of August 2019, the scheduled dates for issuing the press releases are as follows:
 

The following is issued on behalf of the Hong Kong Monetary Authority:
 
     The Hong Kong Monetary Authority (HKMA) announced the results of the residential mortgage survey for July 2019.
      
     The number of mortgage applications in July increased month-on-month by 18.9 per cent to 15 140.  
      
     Mortgage loans approved in July increased by 4.4 per cent compared with June to HK$46.6 billion. Among these, mortgage loans financing primary market transactions decreased by 1.1 per cent to HK$11.3 billion and those financing secondary market transactions decreased by 11.1 per cent to HK$16.8 billion. Mortgage loans for refinancing increased by 29.2 per cent to HK$18.5 billion. 
      
     Mortgage loans drawn down during July increased by 5.7 per cent compared with June to HK$40.7 billion. 
      
     The ratio of new mortgage loans priced with reference to HIBOR increased from 88.3 per cent in June to 88.5 per cent in July. The ratio of new mortgage loans priced with reference to best lending rates increased from 8.9 per cent in June to 9 per cent in July.
      
     The outstanding value of mortgage loans increased month-on-month by 1.3 per cent to HK$1,388.3 billion at end-July. 
      
     The mortgage delinquency ratio remained unchanged at 0.02 per cent and the rescheduled loan ratio remained unchanged at nearly 0 per cent.