Hong Kong luxury sales indicate growing mainland confidence

Sales of luxury items in Hong Kong increased in November, a sign of revived confidence among Chinese consumers as new figures show the nation’s economy rebounded at the end of 2012, Bloomberg reported. Sales of watches and jewelry, among other luxury goods, increased 13.7% year-on-year following a 2.9% fall in October, Hong Kong’s government reported on its website on Thursday. Mainland tourists play a substantial role in fueling Hong Kong’s retail sales, making the numbers a bellwether of consumer confidence in China. “The rebound in luxury sales will be sustainable, although we’re unlikely to see the 30% or 40% growth of the past,” Lily Lo, an economist at DBS Group Holdings (D05.SGX) said. In November, mainland visitor arrivals to Hong Kong increased to more than 3 million, a 30% year-on-year increase.