Hong Kong’s Bankruptcy Filings Hit Four-Year High Amid Pandemic
What’s new: In 2020, petitions for bankruptcy and the compulsory winding-up of companies both hit four-year highs in Hong Kong, according to data released Friday by the city’s Official Receiver’s Office.
Hong Kong’s bankruptcy filings jumped to nearly 8,700 last year, up 6.6%, while filings for compulsory winding-up reached around 450, up 7.2%.
What’s the background: Despite its successful management of Covid-19 infections during the first half of 2020, the Asian financial hub has been haunted by the recurrence of virus cases, dealing a serious blow to efforts to recover its economy.
In November, Hong Kong’s total retail sales decreased 4% year-on-year by value, bringing the decline for the first 11 months to 25.3%, government data showed.
It is expected that more businesses will close down after the Lunar New Year, especially in tourist areas where rents are higher, Annie Yau Tse, chairman of the Hong Kong Retail Management Association, said (link in Chinese) earlier this month.
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