'Virus Surge, Sino-US Tensions May Slow HK Recovery'

Financial Secretary Paul Chan warned on Sunday that the third wave of coronavirus infections in Hong Kong, and escalating tensions between China and the US, may slow down a recovery in the SAR's economy.

Writing in his blog, Chan said the city's economic performance in the second quarter was very poor, but the contraction appeared to have eased somewhat.

He estimated that a decline in retail sales will have slowed last month due to an improvement in the local coronavirus situation.

This month, however, has seen a surge in new infections, with restrictions reimposed on many businesses, including a temporary closure of various entertainment venues.

The finance chief said he understands the social distancing measures cause inconvenience to the public and put pressure on companies, but he said a choice had to be made between short-term pain and long-term pain.

Chan again called on landlords to cut rents, especially those who are receiving the government's wage subsidy.