Name: Hong Kong Enters an Era of No Profits... | China Deep Dive | Gan Jing World
Uploaded: 2026-02-18T13:27:02.469Z
Duration: 18 min 31 s
Description: #Chinadeepdive Hello, this is China Deep Dive. We have all the information you need to know about C... | Videos | Gan Jing World - Technology for Humanity | Video & Movie Streaming

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https://media1-us-west.cloudokyo.cloud/video/v13/51/7d/8e/517d8e1c-88b5-4a0a-9d3b-984990172fcf/master.m3u8

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Hello, this is China Deep Dive. We have all the information you need to know about China at present. Today's topic is:

What we see is that the streets of Hong Kong are still bustling with people, and restaurants still have customers, but they're not making money. Hong Kong's catering industry has long been burdened by high rents, which often account for 30-40% of costs, far exceeding labor and ingredient expenses. Even a slight dip in business can instantly turn a profit into a loss. The surface is bustling, but in reality, they're just barely hanging on.

The blogger points out that the deeper problem is that shops in Hong Kong are no longer just spaces for doing business, but financial assets. For many landlords, rent is not a source of income, but a valuation tool. Lowering rents is tantamount to admitting asset devaluation; banks may require loan reassessment and additional collateral, jeopardizing the entire cash flow. Therefore, they prefer to leave shops vacant rather than lower prices. This leads to an absurd situation: rents in once-prime locations like Causeway Bay and Russell Street can plummet by 70%, while street-level shops in ordinary neighborhoods see only a token reduction, or even remain unchanged. Those truly squeezed out are always the small businesses that rely on their own hard work for a living.

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Hong Kong Enters an Era of No Profits, Brick and Mortar Stores Pushed to the Brink , Wave of Closure

China Deep Dive