Shares in SaSa International dropped sharply in August as the social unrest in Hong Kong stepped up a gear. According to a report published by Bloomberg, the already ailing beauty chain has lost two-thirds of its market value in the space of 11 months, with its shares dropping 24 percent in value in August alone.
“SaSa has been a proxy of Hong Kong’s sales outlook, especially of mainland tourists’ spending in the city,” Kenny Wren, Strategist at Everbright Sun Hung Kai Co told Bloomberg. “The rising short ratio reflects that investors are really bearish about the outlook of Hong Kong’s retail and tourism industry.”
Both tourist arrivals and retail sales were down across the island in August, with Bloomberg Intelligence predicting a decade low for the former. Members of the Hang Seng Index are expected to see the biggest decline in operating income since La Crise, Bloomberg says.