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HONG KONG: The strains of the global financial crisis are taking their toll on businesses in Hong Kong.
The latest casualty is major fashion chain and Hong Kong-listed firm, U-Right, which has gone into liquidation with debts of more than US$153 million on Friday.
Court-appointed liquidators have shut 20 of the retailer's shops and sacked nearly 200 of its employees. The company operated 96 shops in the city.
The gloomy outlook is getting small businesses worried. Shopkeepers say they are seeing a significant slowdown in business, with residents tightening their budgets.
Shopkeeper of VIVA shoe shop, Ray Chan, said sales have dropped by about 50 per cent in September.
He said, "Well, business of course is no good at all right now."
Soaring inflation and warnings that the city could go into a recession in 2009 has caused Hong Kongers to tighten their belts.
A member of the public said, "I am spending more and more on food and less on extravagant items. Things I don't need, I don't buy anymore."
Another said, "I think the future is more darkness. Not just for Hong Kong."
However, some residents are not too worried and say they have been unaffected so far by the economic situation.
One such resident said, "My salary didn't go up, didn't go down, it's still the same."
Some are confident Hong Kong can weather the storm and say for now, the best they can do is try to let life go on as normal.
- CNA/yt
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