Travel curbs crimp expectations for retailers in Hong Kong

Scaling back the multiple-entry permits for mainland visitors may deal a severe blow to the retail industry in the Hong Kong Special Administrative Region, industry analysts said on Monday.

In its research report published on Monday, Bank of America Merrill Lynch slashed its recently revised retail sales forecast for Hong Kong this year from a 3.5 percent year-on-year drop to a 5.8 percent year-on-year drop.

The report followed a Ministry of Public Security announcement that residents of Shenzhen will no longer receive multiple-entry permits to enter Hong Kong. A policy was enacted on Monday to limit their travel to "one visit per week", although, as expected, multiple-visit permits already issued remain valid.