Why can’t Hong Kong retail landlords cut rents for struggling tenants?

Slashing rents impacts assessments, so landlords must strike a balance between cash flow and long-term asset value, Knight Frank says

In this difficult environment, are landlords just being stubborn? It’s complicated, according to agents and analysts.

Retail sales in the city contracted for 14 straight months until May, when they expanded by 2.4 per cent to HK$31.3 billion (US$3.9 billion). The slump has wreaked havoc on retailers and brands, many of which have been forced to reduce their presence or exit the city altogether.