Hong Kong retail hit by Shenzhen rivalry, weak mainlander spending

HONG KONG -- Retailers in Hong Kong are feeling the pinch as mainland tourists spend less while more locals head to Shenzhen and other parts of southern China to shop and dine, earnings announcements show.

Wharf Real Estate Investment Co. (Wharf REIC), which runs two of the city's landmark shopping centers -- Harbour City and Times Square -- said Monday that it expects a net loss of no less than 900 million Hong Kong dollars ($115.4 million) for the first six months of the year. This would be a dramatic swing from a net profit of HK$1.8 billion a year ago.