According to a research note from JPMorgan, Hong Kong's total retail sales value for April grew by 9% year-on-year, showing a modest deceleration from the 13% growth recorded in March. Compared to the average levels from 2015 to 2018, April's retail sales were 15% lower, a more pronounced weakness than the 9% deficit seen in March. Excluding categories with exceptionally strong growth, such as motor vehicles (up 46% year-on-year) and electrical goods (up 22% year-on-year), the overall retail sales growth for April was 6%, down from the 8% increase in March.

The bank noted that while retail performance is stable, this has not yet translated into positive or even stabilizing rental reversion trends for two major Hong Kong retail property bellwethers: WHARF REIC (SEHK: 01997) and LINK REIT (SEHK: 00823).

JPMorgan maintains a 'Neutral' rating on both Hong Kong stocks. However, it pointed out that LINK REIT possesses greater upside potential due to its dividend yield exceeding 6% and potential for capital recycling.