(Bloomberg) -- Chinese consumers are tightening their purse strings, dragging down shares of watch companies that rely on the world's second-largest economy to drive growth.
Emperor Watch & Jewellery Ltd., Chow Tai Fook Jewellery Group Ltd., Luk Fook Holdings International Ltd. and Chow Sang Sang Holdings International Ltd. fell at least 1.4 percent Tuesday in Hong Kong after analysts at Bank of America Corp. warned that “particularly weak” demand for timepieces in China may get worse. The city counts on visiting shoppers from mainland China to power earnings.
A weaker yuan and slowing economic growth are hurting China's powerful domestic-consumption engine just as exporters feel the heat of a trade war. The pain has been felt far and wide, with luxury retailers from around the world warning of waning demand for jewelry, handbags and liquor. Official data last week showed consumers are still in a downbeat mood, and a slowing property market is adding more pressure to the outlook.
Read: Chinese stocks are sending a scary signal about the economy
To contact the reporter on this story: Sofia Horta e Costa in Hong Kong at shortaecosta@bloomberg.net
To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Philip Glamann, Jeff Sutherland
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