10
nine per
its trade with the USA. Trade was up cent in real terms for the first quarter. Exports to China, Germany and Japan were also growing well. But outside of this the picture is patchy. Overall exports for the first quarter were up in real terms by two per cent, but the first quarter of the year is invariably a slack period for Hong Kong's export trade. Optimistic claims regarding lengthening order books are, however, coming from particular sectors, most notably plastics and the basic textile industries. The latter in recent years have not often been the source of re-assuring news. Any general upsurge in Hong Kong's exports is as likely as not, to be felt firstly in the basic spinning, weaving and finishing operations, so advances here must be regarded as encouraging.
The figures show textile exports for January- March up 15 per cent in money terms, which is almost ten per cent more than the growth registered during the equivalent quarter of 1982. Other good areas of growth include jewellery, electronic watches, and, most particularly of all, office machinery and computer components. On the other hand, Hong Kong's most significant export line, clothing, which accounts for something like 35 per cent of all exports, grew by only 5 per cent in money values.
Economy measures working well Government was also able to say that its self- imposed economy measures were working out well, and that the actual degree of growth might well be less than the already trimmed-back upper limit of 17 per cent. Up to May, however, it was difficult to find consolation elsewhere. Unemployment for the first quarter rose to 5.1 per cent, the highest total since 1974. This in itself, most commentators felt, was not too serious since it could be regarded as an inevitable hangover from the lean months of 1982, and before demands for manufacturing labour begins to pick up, as order books lengthen, industrialists
will in the meantime reap the benefit of labour productivity gains.
More worrying for many is the poor state of Hong Kong's corporate sector generally, reflected in a crop of almost unmitigatedly disappointing results from every sector - property, finance, trading, manufacturing, hotels, shipping and so on. Undoubtedly, this in part reflects the effects of recession, particularly in some of the more specialised sectors such as shipping. The general concern however focusses on the property sector, and more importantly on the ripples spreading out from property developers to their financiers – which means virtually the entire financial sector from the Hongkong & Shanghai Banking Corporation down to the most recently registered Deposit Taking Company.
First loss in living memory
The overall position is nicely symbolised by the fact that the Hong Kong Land Company, still Hong Kong's largest quoted company, declared a loss for the first time in living memory', as one analyst put it. Its loss was perhaps a technicality, but it was a significant one a declared profit of HK$1,386 million became a bottom line loss of $514 million after provision for $1,900 million against 'certain property joint ventures'.
Much of the interest in the property/finance sector has understandably focussed on the widely publicised collapse of the Carrian Group, which, although not yet in the hands of a receiver, is being regarded by most as if it were. Property millionaire Mr Li Ka Shing, who had entered into several ventures with Carrian in its heyday, recently filed a writ against the company for $60 million. Although the anticipated crop of failures did not materialise at Chinese New Year, the traditional time for settling of debts within the Chinese business community, the thought that perhaps the full picture is yet to be revealed persists. In the meantime, banks and DTCs juggle uneasily with their customers' Balance