Substandard work and evasion of oversight helped fuel deadly Hong Kong fire, investigators told

HONG KONG (AP) — An independent committee investigating the cause of Hong Kong’s deadliest fire in decades heard arguments on how improper practices that evaded regulatory oversight turned a small fire into a tragedy as the case neared its conclusion Friday.

The November blaze spread through seven buildings of an apartment complex, killing 168 people and displacing thousands of residents at Wang Fuk Court in the suburban Tai Po district. Many of the residents now live in temporary housing.

Committee lead lawyer Victor Dawes said the use of non-fire-retardant scaffolding netting was very likely a key reason for the fire's rapid spread at the complex, which was undergoing a major renovation project when the blaze started. Having wooden planks boarding up staircase windows caused plumes of smoke in residents’ escape routes, he said.

He said Will Power Architects Company, a consultancy, and Prestige Construction & Engineering Co., the main contractor on the project, cut corners in the work and the materials, in addition to deceiving regulators and homeowners, he said. Various substandard and improper practices were involved, including faked compliance of inspections. Certain professionals responsible for inspections signed documents like a “rubber stamp," he said.

Dawes also criticized the government’s reliance on an honor system in overseeing the project, saying relevant departments should bear responsibility.

“When faced with dishonest bad actors, the entire system collapsed,” he said.

Several residents wept during the hearing that was concluded Friday.

On Thursday, Lawyer Jenkin Suen, representing the government, acknowledged some systemic vulnerabilities but said it would be unfair to say government departments were the instigators of the fire. Some professionals and contractors abused a mechanism that aimed to protect the public and betrayed the trust placed in them, he said.

Jeffrey Tam, a lawyer for nine residents of the Wang Fuk Court, noted some residents decided to give evidence despite being distressed by the tragedy.

“But we heard some witnesses appear that they just wanted to to be shirking responsibility," he said. “So sometimes I also understand why they could not hold back their anger."

He added deflecting responsibility like this would not help the city find out the truth.

The investigating committee led by High Court judge David Lok is expected to give recommendations after reviewing the fire’s cause, potential systemic problems and whether existing regulations and penalties are sufficient. When the committee's findings will be released is not known.

But its scope of work does not include possible legal liabilities, which will be handled by law enforcement authorities.

Last month, Hong Kong authorities charged seven people and two companies in June with offenses including manslaughter and conspiracy to defraud over the fire. The companies include Will Power and Prestige Construction & Engineering Co.

Yip Ka-kui, a family member of a victim of Tai Po fire, looks on following the closing submissions at the hearing of an independent committee investigating last year's Tai Po fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Patrick Liu speaks to the media following the closing submissions at the hearing of an independent committee investigating last year's Tai Po fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Jenkin Suen, counsel for the Hong Kong government leaves for a lunch break following the closing submissions at the hearing of an independent committee investigating last year's Tai Po fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Lee Kwok-hung, speaks to the media following the closing submissions at the hearing of an independent committee investigating last year's Tai Po fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Yip Ka-kui, a family member of a victim of Tai Po fire, looks on following the closing submissions at the hearing of an independent committee investigating last year's Tai Po fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Tony Tsui Moon-come, former chairperson of the management committee of the Incorporated Owners of Tai Po Wang Fuk Court, arrives for the closing submissions at the Independent Commission investigation hearing into last year's Tai Po deadly fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Members of Independant Commission team arrives for the closing submissions at the Independent Commission investigation hearing into last year's Tai Po deadly fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Member of the public arrives for the closing submissions at the Independent Commission investigation hearing into last year's Tai Po deadly fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

David Lok, chairman of the Independent Committee, arrives for the closing submissions at the Independent Commission investigation hearing into last year's Tai Po deadly fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Jenkin Suen, counsel for the Hong Kong government, arrives for the closing submissions at the Independent Commission investigation hearing into last year's Tai Po deadly fire, in Hong Kong, Friday, July 17, 2026. (AP Photo/May James)

Home Depot’s sales improved during its second quarter as customers focused on smaller projects during the summer months with the U.S. housing sector still mired in a slump.

Revenue increased to $47.86 billion from $45.28 billion, edging out the $47.24 billion that Wall Street had expected, according to a survey by FactSet.

Globally, sales at stores open at least a year, a key indicator of a retailer’s health, climbed 1.7%. In the U.S., comparable store sales rose 1.3%.

“We saw broad based demand across the business as customers continued to engage in smaller projects,” Chief Financial Officer Richard McPhail said in prepared remarks Tuesday.

Customer transactions slipped 1% in the quarter, but the amount shoppers spent rose to $92.50 per average receipt from $90.01 a year earlier.

Healthy spending on smaller projects during the quarter is encouraging, said Neil Saunders, managing director of GlobalData.

“From our data, the number of smaller projects undertaken during the quarter increased by 1.5% over the prior year,” Saunders said in an email. “This may sound unimpressive, but it represents a step change from the declines of previous periods."

But Saunders also pointed out a potential weakness that is impacting almost all businesses where credit is sometimes required.

“The number of bigger-ticket projects undertaken remains down, falling by 2.1% over last year,” he said. "Concerns around financing and a previous lack of moving activity both remain major drags on the bigger-ticket segment.”

Homeowners that are currently considering taking out loans using home equity are realizing that it is considerably more expensive now compared with the ultra-low rates Americans could count on in the early 2020s. A home project that seemed within reach at a 4% to 5% borrowing rate looks a lot more daunting at 8% or higher.

While the average long-term U.S. mortgage rate fell slightly for the first time in six weeks, it is still up from last year and borrowing costs remain steeper than they were a year ago.

The U.S. housing market has been in a slump dating back to 2022, the year mortgage rates began climbing from historic lows that fueled a homebuying frenzy at the start of this decade.

Sales of previously occupied U.S. homes slowed again in July as record prices and the highest mortgage rates in a year prove to be an insurmountable hurdle for many prospective buyers. Existing home sales fell 1.7% last month from June, the National Association of Realtors said last week.

Home prices continue to rise and hit unprecedented levels for the month of July, NAR said. The U.S. median sales price increased 2% from a year earlier, to $434,100.

For the three months ended Aug. 2, Home Depot earned $4.77 billion, or $4.79 per share. A year earlier the home improvement retailer earned $4.55 billion, or $4.58 per share.

Excluding one-time items, earnings were $4.92 per share. That’s much better than the $4.73 per share that Wall Street predicted.

McPhail, along with Ann-Marie Campbell, senior executive vice president, are overseeing operations while CEO Ted Decker takes a temporary medical leave of absence. The company said last week that it expects Decker to return within the next few months.

Home Depot also announced Tuesday that it is launching express delivery nationwide. The service will get orders to customers within three hours or less. It will be available for a small flat fee in the U.S., with no subscription or membership required.

The Atlanta company has posted solid back-to-back quarterly performances this year though many Americans have struggled to buy a home. Despite the solid performance, Home Depot stuck with its earlier sales growth guidance for fiscal 2026 of between 2.5% and 4.5%. It also left unchanged its expectations that comparable sales will be flat to up 2%.

Home Depot said that its outlook includes tariff refunds, which are expected to partially offset higher fuel, energy, and other product input costs throughout the year. Last year, the company said that it didn't expect to raise prices because of tariffs, but executive Billy Bastek said at the time that some products that were on Home Depot shelves may disappear.

The company's stock gained slightly in early morning trading.

FILE - Exterior view of a Home Depot in Uniontown, Pa., on Friday, June 5, 2026. (AP Photo/Gene J. Puskar, File)