Retail sales of jewellery and other valuable items rose significantly in August on the back of improving fundamentals, particularly overseas visitor arrivals.

Government data showed that sales of jewellery, watches and clocks, and valuable gifts rose 57.2 per cent in August to HK$5.17 billion (around US$660.19 million) while January to August figures were up 63.1 per cent to HK$40.58 billion (approximately US$5.18 billion).

Hong Kong said the retail sector would continue to benefit from the ongoing recovery of inbound tourism alongside positive consumer sentiment amid improved labour market conditions and government-led campaigns to boost consumption.

Meanwhile, jewellery exports were down 4.7 per cent in August to HK$21.1 billion (about US$2.7 billion). January to August figures were up .3 per cent to HK$154.87 billion (around US$19.8 billion).

Overall exports dipped due to lacklustre demand, according to the Hong Kong government. Shipments to major markets such as the US and the European Union declined notably from a year earlier while those to China and other Asian markets were also down, it added.