Consumption Vouchers And Travel Resumption To Support Retail Rebound;

Hong Kong retail sales increased 10.5% yoy in May 21, above expectations of 6.9%. We expect the rollout of the government’s evoucher support scheme to boost retail sales in the short term. Meanwhile, we observe that vaccination rates have been increasing meaningfully and this could lead to relaxation of social distancing measures and travel restrictions in the next six months. Upgrade to OVERWEIGHT as we expect retail rents to rebound in 2H21.