inevitable levelling-off following two years of
remarkable growth. But, a decline during the year in
demand from Hong Kong's major markets, notably the
United States, and the appreciation of the Hong Kong
dollar, through its link with the US dollar, against
other currencies which reduced the competitiveness of
Hong Kong's exports in the world's markets also
contributed.
9.
Whilst domestic exports to Hong Kong's former
traditional markets have declined in the
the first half of
70% reflecting the
the year, those to China grew by
adoption by the PRC of more liberal
economic policies
and its demand for imports in it modernisation
programme.
At the s ame
time,
China
has become the
largest market of re-exports through Hong Kong and the territory has re-emerged as the entrepôt for China.
For the first time since the early 1950s, Hong Kong saw
trade surplus with China in the first six
a
months of this year. However, the present high level of domestic and re-exports to China could be affected
by China's recently
introduced tighter controls
use of her foreign exchanges.
on the
10. During the first half of
of 1985 Hong Kong's total
from all countries
9% imports
grew by only
in real
terms with the result that
that a visible trade surplus was
recorded during the period January June compared with
a visible trade gap in the same period in 1984.
11.
Despite movements
in the exchange rates of the US
dollar against other major currencies, the exchange rate of the Hong Kong and US dollars has remained close the linked rate of HK$ 7.80. Following a weakening
of the US dollar during the summer, the
to
exchange moved briefly
with
rate
to around HK$ 7.72. However,
interest rates i t
to the lowering of interest
of
returned
its