Wu Tianhai is worried that the oil crisis will severely impact the local economy, stating that he is "not pessimistic about the recovery of the retail industry, but the reality is quite stark."

The chairman of Wheelock Properties (1997), Wu Tianhai, stated that the retail market in Hong Kong has had a good start this year, with momentum seen in February as well. However, regarding the outlook, he said, "I'm not pessimistic, but the reality is quite stark." He pointed out that the situation in the Middle East could lead to a crisis more severe than the oil crisis of the 1970s, which may have a serious impact on Hong Kong's economy, frankly stating, "If you ask me to estimate today, I have no confidence at all." Related News: Wheelock Properties' basic net profit increased by 5% last year, with a 10% increase in the final dividend, indicating a steady recovery in retail, but "it will take time to convert into revenue." Oil Crisis May Be More Severe Than in the 1970s Wu Tianhai noted that the impact of this oil crisis could vary greatly, and compared to recent conflicts such as Russia-Ukraine and Israel-Palestine, the situation in Iran poses a more direct threat to Hong Kong, including rising energy prices and electricity costs, which will likely exacerbate inflation. Interest rates may also be difficult to lower, potentially having a serious impact on Hong Kong's economy. Opportunities Amidst Crisis: Middle Eastern Funds and Enterprises May Flow Back He believes that the situation in the Middle East presents opportunities for Hong Kong as well, including some funds and enterprises originally intended for the Middle East may flow back to Hong Kong. Currently, they are observing whether this trend will emerge; while the tourism industry may see a reduction in European visitors to Hong Kong, it could simultaneously attract more Asian travelers staying in the region. Good Start for Retail This Year Regarding the retail market in Hong Kong, Wu Tianhai stated that there has been a good recovery momentum in recent months, especially in January this year, where retail sales still showed growth compared to the high base during last year's Lunar New Year, and February continued to show momentum. However, he emphasized that retail rental levels are lagging behind, and overall, the market remains relatively weak. Furthermore, with the ongoing situation in the Middle East, downward pressure on rents in Hong Kong will be greater. Imbalance in Office Supply and Demand; Alibaba Expected to Move Out of Times Square After Full Occupancy In terms of office space, Wu Tianhai pointed out that the overall imbalance in supply and demand continues, and the recovery of new demand is not keeping pace with the increase in supply. Regarding Alibaba (9988), which previously purchased the One Island East in Causeway Bay as its Hong Kong headquarters, it is still leasing several floors in Times Square under Wheelock. Wu Tianhai believes that Alibaba will move out after the lease expires, but he did not respond to when it will expire. Currently, Wheelock has not been able to finalize a new lease, only stating that they are "setting a baseline." Reducing Debt to Respond to Market Volatility Wu Tianhai stated that since it is uncertain how long the conflict in the Middle East will last, the group can only further strengthen efforts to reduce debt and maintain financial stability to cope with challenges that may arise in the market at any time. He also mentioned that Wheelock has not set a debt reduction target, but has generally reduced about HKD 2 billion each year in the past, hoping to achieve a similar level this year