According to local media reports, CHOW TAI FOOK Construction has begun to lay off employees due to operational difficulties, and some of them may transition to the CHOW TAI FOOK (00659.HK) subsidiary, Hoi Hing Construction.

The chairman of the Construction Industry General Union, Chow Si-kit, stated yesterday (26th) that, as he understands, Hoi Sheng has to lay off employees due to problems with project volume, and an announcement is expected within this week; he feels shocked by the news, indicating that at this year's end, the laid-off workers feel lost.

He stated that the situation of wage arrears in the industry is severe, due to a decrease in project volume, with private construction projects decreasing by more than 60%. Private developers not on the Development Bureau's list have also not benefited from public projects, suggesting that the government should "break down" projects to attract the industry to undertake public works.

Currently, Hoi Sheng Construction is undertaking projects including the University of Hong Kong's Wong Chuk Hang student dormitory, the Aerospace City office and shopping mall, and the Tai Wai Park Avenue.