After years of steady growth thanks to strong demand from deep-pocketed mainland Chinese tourists, jewellery shops in Hong Kong should brace for tougher times, with sales growth in luxury goods including jewellery and watches slowing for a seventh straight month.

Caroline Mak Shui-king, chairwoman of the Hong Kong Retail Management Association, said low- and medium-priced jewellery might not be selling as strongly as before. "Recently we saw slackening growth in the number of mainland tourists - and we haven't seen that in a very long time," she said.

Mak warned that some luxury goods shops, which have overexpanded in districts with sky-high rents over the past year, may face falling profits and even shop closures.

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