Core Viewpoint - Hong Kong's retail sales in August increased by 3.8% year-on-year to HKD 30.3 billion, marking the fourth consecutive month of growth, surpassing market expectations of 2% and the bank's forecast of 1% [1] Retail Sales Performance - The year-to-date retail sales decline narrowed to 1.9% for the first eight months, an improvement from the 2.6% decline in the first seven months [1] - The bank anticipates that retail sales for the full year may return to flat levels, primarily driven by an increase in visitor numbers, with mainland Chinese and long-haul travelers rising by 15% and 23% year-on-year, respectively [1] Sector Analysis - Luxury goods sales showed strong performance, attributed to increased traveler spending and a low base effect, while essential goods sales remained weak [1] - Companies such as Wharf Real Estate Investment (01997) and Hysan Development (00014) may benefit from this retail sales improvement, although there are concerns regarding rental pressure and increased shopping at mainland duty-free stores [1] - New World Development (00017) is expected to capture a larger market share in the Tsim Sha Tsui area [1]