HONG KONG - The Chinese mainland, where the central government endeavours to promote consumption and rural development, will open up new dimensions for Hong Kong companies accustomed to exporting to overseas markets, Daniel Poon, an assistant chief economist of the Hong Kong Trade Development Council (HKTDC), said on Thursday.

Despite a tight monetary policy and continued adjustments of the asset market, economic fundamentals in the mainland have remained sound, Poon said at a press conference here.

In particular, consumer spending has been revved up by soaring wages and government initiatives to stimulate consumption, he said.

Amid the positive consumption atmosphere, retail sales in the mainland during the first 11 months of 2011 were 17 percent higher than a year ago. Just in November, retail sales in the mainland soared by 17.3 percent.

The brisk performance underscored not only the strong trend in consumption, but also the rising Christmas spirits across the mainland, Poon said.

While Christmas is not traditionally celebrated in the mainland, it has begun to catch on in the urban centre and increasingly the rural areas, as retailers put up Yuletide decorations and undertaken related promotional activities.

Feedback from HKTDC's network in the mainland shows that hearty retail sales were registered for most consumer products, covering both basic and luxury items. In addition to buying at home, a large number of consumers also thronged Hong Kong for holiday shopping sprees here.

The whole performance of Christmas season sales in global major markets is worse than last year, but the emerging markets performed better than traditional ones, Poon said.

Retail sales performance during the Christmas season is a major indicator of consumer sentiment as well as consumer buying strength and preferences, giving a valuable pointer to the state of the retail business in the year ahead, he said.

The 2011 Christmas sales situation in Hong Kong's major markets deserves added significance, as much attention appears to be focused on the season's sales to determine the extent to which the renewed downturn of the global economy will affect consumer confidence and spending, he said.