G.F. 326
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15
21.
The value of imports from China in the second quarter of 1986, at HK$19,650 million, was 45% higher than
in the same quarter of 1985. This marked increase was in part due to the rapid growth of re-exports of China origin (42% in money terms, on a year-on-year comparison basis). Improved prospects for domestic exports to major overseas
markets may have also led to increased importation of raw
materials and semi-manufactures from China. Besides, to the extent that the differences in quality can be compensated for by the widening price differences, the substantial appreciation of the yen may have induced some manufacturers to switch from imported raw materials, such as textile yarn and fabrics, from Japan to those from cheaper sources, such as China (7)
In addition, the
tighter control imposed by China over parallel trade has probably resulted in a larger proportion of goods flowing into Hong Kong being properly declared than in the last couple of years when parallel trade was very buoyant.
Hong Kong's imports from China
1985
2 2 2 2
Q4
01
Q2
03
Annual
Imports (HK$Mn)
Growth rate#
( % )
12,094
13,572
- 3
-6
15,090
5
18,206
26
58,963
6
1986
Q1
15,241
Q2
19,650
H1
34,891
# in money terms
26
45
36
(7)
Imports from China of raw materials and semi- manufactures increased by 44% in the second quarter of 1986 over the same quarter last year.
CONFIDENTIAL #