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Tag: Hong Kong

  • Devialet opens its new store at Hong Kong

    Devialet opens its new store at Hong Kong

    Devialet, the French innovator in breakthrough sound technology, launches its new store at the iconic Hong Kong retail destination, Pacific Place.

    Fully operational during this soft launch period, Devialet Pacific Place will be continuously upgraded over the coming months to deliver the unmistakable Devialet experience with a grand opening in April this year.

    During this soft launch period, a section of the store’s complete retail area will be open while the full sales floor undergoes an extensive two-phase remodel and renovation. The upgrades will be completed in April this year, setting the stage for a grand opening where Devialet fully unveils this new space to experience the best sound in the world.

    Founded in 2007, Devialet is a leading tech start-up and the most award-winning company in the history of audio.

    Widely acclaimed by industry experts and international press, Devialet’s products now retail at the world’s most exclusive outlets, including Colette, Harrods, Kadewe and Apple Stores. Bernard Arnault, Jacques-Antoine Granjon, Xavier Niel and Marc Simoncini are among early investors.

    In December 2016, Devialet accelerated its development with a record €100m in fundraising from leading international investors to help deploy its technologies in new sectors and accelerate commercial development in Asia and the United States.

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  • Toys ‘R’ Us is said in talks to sell Asia unit to Fung Group

    Toys ‘R’ Us is said in talks to sell Asia unit to Fung Group

    Toys ‘R’ Us Asia may be taken over by to its local partner, the Fung Group.

    A deal could give Toys ‘R’ Us Asia a valuation of at least US$1 billion. The private holding company of Hong Kong’s billionaire Fung brothers is considering finding partners to join it in the purchase, and if a deal is reached the group may seek an IPO after one to two years, according to the source.

    The US company and some of its North American subsidiaries filed for bankruptcy in September, the Asian unit being excluded. Growth in Asia Pacific helped offset weak sales in the US and Europe in the quarter ended October 28. The company combined its Japanese business with the broader Asia venture last year, which now has more than 400 outlets throughout the region.

    Representatives for Toys ‘R’ Us and Fung Group have declined to comment on the possibility of the Asia business being offloaded.

    Separately, the UK arm of Toys ‘R’ Us is likely to start a court-led administration process this week after failing to secure new financing to meet a tax liability due this month. The business faces a £15 million ($21 million) value-added tax bill, and talks with potential buyers have fallen through in the past few weeks.

    Toys ‘R’Us Asia was set up in 1986. Fung Group is also the biggest shareholder in Li & Fung, a supplier to Wal-Mart Stores and other US retailers. KKR, Bain Capital and Vornado acquired New Jersey-based Toys ‘R’ Us in a $7.5 billion leveraged buyout in 2005. The company has more than 1600 stores and nearly 65,000 employees worldwide.

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  • Longines Masters of Hong Kong

    Longines Masters of Hong Kong

    After a gripping competition over 1.6m obstacles, on a course etched out by internationally-renowned course designer Louis Konickx, French Patrice Delaveau, astride Aquila HDC, took top honors, ahead of second-placed Max Kühner of Austria on Cielito Lindo 2 by just 0.07 seconds in the jump-off, and Longines Grand Prix of Paris 2017 winner Daniel Deusser of Germany on Cornet D’Amour, who was in with the chance of a €2.25 million bonus if he’d also won in Hong Kong, in third.

    Juan-Carlos Capelli, Vice-President and International Marketing Director for Longines, who handed the Longines Grand Prix to the winner, along with an elegant Longines watch.

    With the crown of this evening’s Longines Grand Prix in hand, Dreelaveau has an excellent chance to collect the Grand Slam Indoor bonus of €1 million if he can win the Longines Grand Prix at the final leg of the current season of the Longines Masters Series, in New York, and follow it up with a win in Paris at the start of the 2018-19 season.
    “It was great today, and my horse was fantastic,” said victorious rider Delaveau, “I love it here in Hong Kong.”

    The other competition of the final day, earlier in the afternoon, the Masters One DBS, presented by new Official Partner DBS, featured a strong field competing over 1.45m obstacles. It was Great Britain Robert Smith who showed the determination and grit to come off victorious on 11-year-old gray gelding Cimano E, clocking a time of 57.17 seconds ahead of Christian Kukuk of Germany on Cordess, and Gerco Schröder of the Netherlands on Glock’s Debalia, who finished second and third respectively.

    Earlier in the day, Hong Kong’s own Nathaniel Chan and Lay Your Love On Z won the JETS Junior Trophy, a competition that gives local fans a chance to cheer for home-grown talents from the next generation as they aspire after high-level honors in a five-star international arena. The young hopefuls were put to the test on a specially designed course in a Grand Prix format across two rounds. Both rides counted, with the winner decided by the fewest penalties across both and the best time in the second.

    The success of the Longines Masters Series has also been recognized by experts, with an award of Best Live Experience at a Professional Sporting Event by the Sports Industry Awards Asia. The 2018 edition of the Longines Masters of Hong Kong has also confirmed its “M” Mark status helping to enhance the image of Hong Kong as Asia’s sports event capital. The “M” Mark, awarded by the Major Sports Events Committee, symbolizes intense, spectacular and signature event on the territory’s sports calendar.
    The glamor and elegance of the event were echoed in the Prestige Village, where sophisticated luxury lifestyle took center stage, shining the spotlight on contemporary art, champagne and wine tastings alongside numerous fine-food outlets, and late-night musical performances from MC RiverJaxx and DJ Jérémie Charlier.

    The Prestige Village was brought to life by a selection of suitably high-end exhibitors, among them Title Partner Longines, which displayed a collection of horological masterpieces in its elegant boutique; Official Partners DBS and Maserati, and an extraordinary collection of artistic masterpieces from Macey and Sons, including works by Cézanne, Turner, Constable and Ai Weiwei.

    “Our ambition has always been to give equestrian sports the most incredible international stage. The Longines Masters Series brings together the Best of Sports and the Best of Lifestyle, with the 3 iconic capitals for backdrop: Paris, Hong Kong, New York” said Christophe Ameeuw, CEO of EEM and Founder of the Longines Masters Series.

    And so, the curtain goes down on the Asian leg of Season III of the Longines Masters Paris – Hong Kong – New York. Attention now turns to New York, which hosts the third and final leg of the Longines Masters Series.

    The American stage presented by equestrian artist Clémence Faivre to the tempo of Amazing Grace, is set to break ground, taking up new quarters in 2018 in New York, at NYCB Live from April 26 to 29, 2018, unquestionably the world’s capital for business and lifestyle, and city that calls nothing impossible.

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  • Moncler Sales Climb 14% in Nine Months

    Moncler Sales Climb 14% in Nine Months

    Clothing retailer Moncler international had double-digit growth in all key financial indicators last year, with soaring Asian sales playing their part.

    Its revenues for the year reached €1.1 billion (US$1.3 billion), an increase of 17 per cent at constant exchange and 15 per cent at current exchange rates. In the fourth quarter, revenues rose 17 per cent at constant exchange and 14 per cent at current exchange rates.

    Moncler chairman/CEO Remo Ruffini says the growth plus a net sales growth of about €200 million confirm the group’s strength and validated its strategy.

    In Asia, revenues grew 20 per cent at constant exchange rates with double-digit sales growth for Japan in the fourth quarter.

    Robust performances continued in China, says Moncler, driven by a double-digit organic growth in the fourth quarter, and in Hong Kong, where it opened a flagship store in Canton Road.

    Revenues from the retail distribution channel last year reached €892.4 million, up 19 per cent at constant exchange rates. The group also achieved comparable store sales growth of 14 per cent.

    At the end of December, Moncler’s mono-brand distribution network comprised 201 directly run retail stores, 11 more than the previous year, and 59 wholesale shop-in-shops, up 17. In the fourth quarter, Moncler opened six retail outlets and 11 shop-in-shops.

    For the full year, the consolidated gross margin was €917.5 million, 76.9 per cent of revenues compared to 75.7 per cent the previous year. This is attributed to retail channel growth and higher production efficiency.

    Adjusted EBITDA rose to €411.6 million from €355.1 million, resulting in an EBITDA margin of 34.5 per cent compared to 34.1 per cent.

    Net income was €133.3 million, up 63 per cent.

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  • Hong Kong to have first CLUSE mono-brand kiosk

    Hong Kong to have first CLUSE mono-brand kiosk

    The Amsterdam-based watch brand CLUSE, renowned for its timeless sophistication and strong focus on materials, quality, and style, opens its first branded kiosk in Asia Pacific with the leading Asian brand accelerator Bluebell Group.

    CLUSE, already popular among Hong Kong millennials after its arrival at kapok and City Chainstores last year, moves into retail expansion and chooses LCX at Habour City to launch its retail concept with the support of Bluebell Group.

    The brand has chosen HK as its gateway to Asia Pacific and also to first launch its jewellery collection with an event hosted by the founder Rudyard Bekker, who brought one of Europe’s most sought-after accessory brands to the city. Retail in Asia met him and asked him to share with our readers the secret about CLUSE fast-track success. Watch the video interview!

    Innovative, minimalistic, and affordable, CLUSE rapidly conquered millennial women in France first, becoming the bestseller among lifestyle brands, and Europe later, to quickly become DW‘s first competitor.

    As an online fanatic, Rudyard sees the importance of engaging storytelling for brands in today’s rapidly changing media landscape.

    CLUSE has been building the brand with a big focus on influencer and online marketing. It was discovered early by fashion bloggers like Sincerely Jules, Veronica Ferraro and Negin Mirsalehi.

    Proven successful, CLUSE has gained 882,000 followers on Instagram over the years; with a social media team of  people working in its Amsterdam headquarters, on its analysis, strategy and execution.

    Today, not only CLUSE has built a strong brand identity and unique design concept, but differently from its competitors it keeps refreshing its collections to provide its customers with more diversity. CLUSE watch is characterized by the use of materials such as pearl and marbles and the versatile straps available in different themes. The new store offers a wide selections of bestsellers and new collections.

    The new store will be unveiled 1 March 2018. It is the first branded kiosk in Asia Pacific and it showcases the retail concept of the brand, designed by the in-house team based in Amsterdam and HK. A 360 degree retail space that encapsulates the sophisticate CLUSE soul.

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  • McDonald’s Hong Kong uses Elton John classic to celebrate ‘Little Big Moments’

    McDonald’s Hong Kong uses Elton John classic to celebrate ‘Little Big Moments’

    Scenarios portrayed include a friends’ rooftop dinner, an expectant mother with her partner and a young man visiting his ailing relative.

    Created by DDB Group Hong Kong, the #LittleBigMoments video has been viewed more than a million times on YouTube, and another million elsewhere on social media, since its release last week.

    “As a brand, we understand that life is not just one big thing, but the accumulation of a million little things, a million little moments. And in the end, it is these little moments that make life big,” said Randy Lai, chief executive officer of McDonald’s Hong Kong.

    The use of pop classics is not an unfamiliar tactic used by DDB’s for McDonald’s in Hong Kong. In 2014, American fast food brand used the Billy Joel song ‘Just the way you are’ to promote its cheaper prices.

    In addition to the 60-second TVC, DDB also created three 15 second stories – each focusing a specific McDonald’s product with ‘You Song’ playing in the background.

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  • IRVINS Salted Egg opens store in Hong Kong

    IRVINS Salted Egg opens store in Hong Kong

    Local brand IRVINS Salted Egg, which is popular with both Singaporeans and Hong Kong tourists, have taken their famous potato chip and fish skin snacks to Hong Kong.

    The company opened its first pop-up store in Harbour City in Tsim Sha Tsui on Tuesday (Feb 27), it said in a Facebook post.

    The store aims to “meet the expected huge demand in Hong Kong”, the head of the Hong Kong branch Jeslin Low added in a statement released by the Hong Kong government.

    “As many of our customers are also based in Hong Kong, expanding to the city is in line with our vision to deliver our salted egg snacks and delightful customer experience.

    “That motivated us to build our own team in Hong Kong and deliver the same retail experience as in Singapore,” said Ms Low.

    The brand also hopes to use Hong Kong to launch their snacks within the region.

    “Hong Kong has a robust economy with a high number of international and mainland Chinese visitors,” Hong Kong’s associate director-general of investment promotion Dr Jimmy Chiang was cited as saying in the press release, as he offered reasons to support why Hong Kong is an ideal choice for IRVINS.

    According to the brand’s Facebook page, the Hong Kong team will be built from the “ground up”.

    “Hong Kong is a very business-friendly city and we find the incorporation and opening process here very smooth. These really support our vision and passion to serve our customers here,” added Ms Low.

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  • TenRen Hong Kong plans expansion

    TenRen Hong Kong plans expansion

    Hong Kong food company B&S International expects to raise HK$62.8 million (US$8 million) in an IPO from today, the majority of which will be dedicated to retail store network expansion.

    The company plans to open 16 more licensed TenRen Taiwanese tea stores over the next three years and 10 more Jiu Tang Wu restaurants, which serve Japanese ramen-based foods.

    And it will open the first of a planned network of Uncle Tetsu stores, a popular brand of Japanese cheesecake, for which it has recently secured the Hong Kong licence.

    Retail currently accounts for about a quarter of B&S International’s turnover, but it represents the fastest-growing business segment and the company believes it offers the greatest potential for expansion. Between 2012 and 2016, B&S International grew its retail network by 128 per cent. Retail gross profits rose at a cumulative annual growth rate of about 140 per cent during the three years to March 31 last year.

    The balance of the business is packaged food and beverage distribution, with its top-selling brands being UHA and Hsin Tung Yang.

    B&S International currently owns and operates 47 stores across Hong Kong. It says the TenRen chain was the territory’s top-selling tea drinks brand by revenue between November 2016 and October last year, with a market share of 24.3 per cent.

    Besides its existing brands, B&S International is actively seeking additional food retailing concepts to roll out.

    “The group intends to capture the strong growth potentials by expanding the retail network for its existing licensed brands, particularly TenRen, and sourcing and obtaining licenses from other brands to launch new retail chains in Hong Kong,” the company said in its IPO documentation. “The group will remain prudent when expanding its retail business by continuing to adopt the self-operated model.

    “The retail business currently relies on a few brands only, yet its strong performance and growth will allow the group to attract other high quality brands with potential for setting up and operating retail chains in Hong Kong, thereby expanding its retail business.”

    Retail expansion will soak up about 67 per cent of the funds raised from the IPO, with 90 per cent of the shares in placement and only 10 per cent in the public pool, which closes on March 6.

    Another 17 per cent will be spent on leasing and setting up new warehouse facilities and the balance on upgrading its ERP system, recruiting three additional marketing sales personnel for the distribution business and for general working capital.

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  • Hong Kong luxury watch imports reached its peak

    Hong Kong luxury watch imports reached its peak

    Hong Kong luxury watch imports posted their highest monthly increase for more than five years in January.

    According to the Federation of the Swiss Watch Industry, exports to Hong Kong rose by 21.3 per cent in January, leading a broader Asian rebound which saw China overtake Japan into second place as a destination with 44.3 per cent growth. Exports to the US fell 1.9 per cent, dropping that market into third. Japan was also strong, up 12.9 per cent.

    January’s improvement followed the dynamic performance of previous months and a favourable base effect, the federation reported.

    Swiss watch exports for the month were worth CHF1.6 billion (US$1.7 billion), equivalent to 12.6 per cent growth.

    The value of all the main groups of materials increased. Steel and bimetal watches made the biggest contribution. Total volumes were 2.5 per cent higher, boosted by timepieces in steel and the other metals category.

    Against the trend, the ‘other materials’ category reported another substantial fall.

    After declining for more than two years, watches costing less than CHF200 (export price) continued to lose ground last month. All the other segments had sustained growth, especially in the CHF500 to CHF3000 price range which improved by about 20 per cent.

    Many markets saw strong growth for the month.

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  • Sweet Fashion House plans Hong Kong flagships

    Sweet Fashion House plans Hong Kong flagships

    A high-end designer dessert brand founded by European investors plans flagship stores in Hong Kong and Shanghai this year.

    Sweet Fashion House is launching with a confectionery factory in Tuen Mun which will be staffed by chefs brought in from France and apprentices employed locally. Under the leadership of art director Gael Majchrzak, who is also a pastry and chocolate chef, the team will create and produce handcrafted cakes, chocolates and pastries for individual customers and corporate clients.

    Once it has sufficient volumes, flagship stores will be opened in as yet undisclosed locations in Hong Kong and then major Chinese cities, starting with Shanghai.

    The company aims to tap into what it describes as a fast-growing demand for upscale confectionery in Hong Kong, Mainland China and around the region.

    CEO Kirill Neklyudov says Hong Kong is the ideal place for the group to launch the factory.

    “Hong Kong people love sweets as much as the French do. This is a big market and customers demand up-scale confectionery. Together with its simple and low tax regime and ease of doing business, the city is the ideal place for us to start our company.”

    He says the company is already experiencing strong demand, and plans are underway to expand staff numbers to meet an expected surge in orders.

    The factory also provides cake consultation and tasting for customers to create their own cakes.

     

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  • McDonald’s Hong Kong Celebrates Chinese New Year with song

    McDonald’s Hong Kong Celebrates Chinese New Year with song

    Of the abundance of Chinese New Year campaigns by brands this year, McDonald’s Hong Kong has released a touching campaign that tugs at the heartstrings with the help of a classic by Sir Elton John.

    Cantopop star and actor Eason Chan (who once performed, sort of, with Madonna) sings Elton John’s Your Song in a campaign called #LittleBigMoments, which shows McDonald’s fans of all ages enjoying sharing French fries, a burger, ice cream and more, while emotions run the gamut from sadness to joy, tears to laughter, by babies and elderly women and all ages in between.

    Released on Feb. 15th, it has received more than 2 million views across digital channels, including almost 1.5 million views just on YouTube.

    “As a brand, we understand that life is not just one big thing, but the accumulation of a million little things, a million little moments. And in the end, it is these little moments that make life big,” said Randy Lai, CEO of McDonald’s Hong Kong. “It’s been a real privilege to work with Eason Chan, and with the blessing of Sir Elton John, to create a campaign that is a love song dedicated to our customers.”

    “Nothing stirs the heart like a great piece of music, and this is something our industry often forgets,” added Andreas Krasser, Head of Strategy & Innovation at DDB Group Hong Kong.

    “In this campaign we made the music the hero, with Eason Chan lending a homegrown twist to one of the world’s most beloved songs. Since launching on the 15th February, the brand spot has already garnered more than 2 million views across multiple digital channels, successfully reaching around one-third of Hong Kong people,” he added.

    The #LittleBigMoments campaign led with a 60-second brand spot, followed on February 20th by three 15-second stories (below), each focusing on some of the moments portrayed in the brand piece, but also on some of Hong Kong’s most popular McDonald’s menu items:

    Egg & Beef Burger (imported from Japan):

    Grilled Chicken Burger:

    Chicken Nuggets:

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  • Ashley Sutton presents Dear Lilly at IFC mall rooftop

    Ashley Sutton presents Dear Lilly at IFC mall rooftop

    Award-winning Australian designer Ashley Sutton has launched a restaurant and bar with a floral theme in a glass-walled space on the roof of IFC mall.

    Dear Lilly is described as a romantic restaurant and bar inspired by the hole-in-the-wall florists found along Parisian boulevards. As with Sutton’s other projects in Hong Kong, such as nightlife venues Iron Fairies, J.Boroski, Ophelia and Yojimbo, Dear Lilly is a collaboration with restaurant group Dining Concepts.

    Floor-to-ceiling shelves in Dear Lilly are crammed with vintage perfume bottles brimming with flowers, and hundreds of bouquets hang from the gently swaying kinetic ceiling.

    “Dear Lilly is unlike anything I’ve ever done before,” Sutton says. “It’s an incredibly enchanting space filled with flowers, love letters and charming antique ornaments I’ve sourced from around the world. I want people to step inside and feel like they’re in a fairytale.”

    Heart-shaped marble inlays in the floor are engraved with extracts from love letters. After reading thousands of love letters from throughout history, Sutton decided to fill Dear Lilly with extracts from letters sent by soldiers to their sweethearts during World Wars I and II. The restaurant’s name even came from one of the letters.

    Love letters and poems scrawled on scrolls of paper are piled on the bar alongside vintage black-and-white photos of couples. The bar and mixologists’ workstations are decorated with typewriters, rolls of ribbon and other knick-knacks.

    For romantic meals, Dear Lilly offers intimate booths designed as supersized versions of vintage jewellery boxes. For the steel heart-shaped structures, the metal has been treated to look like tarnished sterling silver.

    Embroidery and crowns

    Meanwhile, the serving staff at the restaurant wear outfits that feature embroidered button-up shirts or Victorian-inspired dresses and flower crowns. Mixologists wear vintage aprons with magnifying glasses, antique scissors and other knick-knacks poking out their pockets.

    Alongside classic drinks, Dear Lilly’s serves signature items inspired by 1920s French cocktails. To match the decor, the cocktails are garnished with edible flowers and sprigs of lavender. Dear Lilly also offers a range of beers served on its terrace overlooking Victoria Harbour.

    The cuisine is contemporary European featuring Mediterranean favours.

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  • La Perla Faces Eviction, $5.1m Bill Over Unpaid Rent on Asia Flagship

    La Perla Faces Eviction, $5.1m Bill Over Unpaid Rent on Asia Flagship

    Italian lingerie label La Perla is facing eviction and further legal action over unpaid rent on its Asian flagship store in Hong Kong, with its landlord seeking upwards of $5.1 million.

    The dispute came to light from a writ filed to a Hong Kong court last Thursday by Century Creations Ltd., the landlord of the premises at 22-24 Russell Street in Causeway Bay, against La Perla Far East Ltd. and its financial guarantor S.M.S. Finance S.A.–and despite the brand being given a rent reduction of more than 30 percent last year.

    La Perla and its prospective new owner Fosun International had not responded as of press time. Chinese conglomerate Fosun said in December it was to complete an exclusive 30-day due diligence period to buy a majority stake the brand from Italian businessman Silvio Scaglia’s Pacific Global Management, which also owns Elite Model Management.

    The boutique is a prominent four-storey location which includes a large LED screen on its facade. At the time of its opening, the 8,000 square foot store was said to the brand’s largest. It was leased commencing Sep. 8, 2015 for five years at the rate of 7.5 million Hong Kong dollars.

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  • Hong Kong’s Sa Sa cosmetics retailer pulls out of Taiwan

    Hong Kong’s Sa Sa cosmetics retailer pulls out of Taiwan

    Hong Kong’s largest cosmetics retailer Sa Sa International Holdings said Wednesday it will shut all its shops in Taiwan after losing money for six consecutive years.

    Sa Sa has 20 stores across the island according to its official website, and employs about 260 local staff. All the shops are expected to be closed by the end of March, the company said in a statement.

    The retailer’s Taiwan operation has been a drag on the group’s business, with turnover decreasing by 11.5% to 154.3 million Hong Kong dollars ($19.7 million) during the 10 months ended in January.

    “The group’s performance in Taiwan has been persistently weak, and the possibility of improvements is low into the foreseeable future,” said Simon Kwok, Sa Sa chairman and CEO.

    The Hong Kong-listed retailer operates about 280 shops — mostly in Hong Kong and mainland China — and employees about 5,000 staff. It also has operations in Singapore, Malaysia and Macau.

    Exiting the Taiwan market will allow Sa Sa to rationalize its resources to gear up for better opportunities in other markets and the development of e-commerce businesses, the statement said.

    The company said it believed the retail market in mainland China, Hong Kong and Macau would benefit from major infrastructure projects linking the mainland and the two special administrative regions, such as the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macau Bridge. Both are expected to be officially rolled out this year.

    “To fully capture the opportunities that will arise from such developments, the group has decided to reorganize its business proactively by closing its loss-making operations in Taiwan,” the company said.

    While Sa Sa expects the store closures in Taiwan to result in a loss, it said the action will have limited impact on overall financial performance, as the affected stores only contribute about 2.5% of the company’s revenue.

    Sa Sa has been a popular brand with mainland tourists to Hong Kong, who contribute roughly 60% of the group’s revenue in the city. But its sales slumped in the past two to three years, as wealthy mainland shoppers traveled further afield for more diverse experiences.

    In the past few months, the company has recorded a robust performance in Hong Kong and Macau, thanks to the recovery in tourism. Sales in the two markets rose 8.1% to HK$1.89 billion in the quarter between October and December, compared with the same period last year.

    Turnover in mainland China, Singapore and Malaysia increased 13%, 3.6% and 3.9% respectively during the period.

  • Rosy results picture for HSBC

    Rosy results picture for HSBC

    HSBC Holdings releases its annual results this week and many investment houses seem positive.

    Goldman Sachs expects the total amount of share buybacks of the banking group to hit US$3 billion (HK$23.4 billion) this year and the dividend payout to be maintained at 51 US cents per share.

    The conglomerate has had three public repurchases in the past, ranging from US$1 billion to US$2.5 billion.

    It will record a US$3.7 billion profit before tax for the fourth quarter of the last financial year while the average market expectation is US$3.9 billion, up 49 percent from its result last year, Goldman Sachs added.

    Investors will tend to focus on the company’s retail business performance in Hong Kong in the fourth quarter last year when the local stock market surged and the interest rate grew, both of which should have benefited the HSBC’s wealth management and insurance business, Goldman Sachs said.

    According to the prediction made by analysts from Bloomberg, the company should see approximately US$20.35 billion annual adjusted profit before tax, growing 5.4 percent year on year. Internal securities and analysts from HSBC are more positive, forecasting a 10.4 percent annual growth in adjusted profit before tax to US$21.31 billion and a 7.6 times year on year gain in net profit to US$11.33 billion.

    However, China Goldjoy Asset Management managing director Matthew Kwok is not expecting too many surprises.

    He said the banking group is unlikely to have a large growth in net profit, plus the switch of management should drag the public attention to new strategy developments, though he agreed that HSBC has sufficient capital for share buybacks.

    Stuart Gulliver, chief executive of HSBC, will leave the position this week after the results’ announcement.

    Recently, he reportedly said the banking giant is unlikely to exercise any spinoff after many years of business restructuring.

    For a long time English politicians have been critical of HSBC for its merger and acquisitions in earlier years “have led the company to the stage of being hard to manage,” but now Gulliver said such concerns have faded.

    With the hope of an excellent result, the banking group’s stock price rose in Hong Kong before the Lunar New Year holiday and surged to HK$83.55 on the last trading day.

    Last October, HSBC released its third quarter result and signaled its pivot to Asia was paying rich dividends as quarterly profits leaped fivefold, and that it will continue placing strong investments in the mainland over next few years.

    The bank makes more than half of its profits in Asia, and its regional pivot is centered around the Pearl River Delta with plans to bolster its retail and wealth management business.

    Back then, Gulliver said that the group expected sustainable profit efficiency from the region.