10% in real

imports of capital goods grew by an estimated terms in the third quarter of

of 1986 over а year ago, after having recorded zero growth in the first quarter and a decline of 11% in the second quarter. Retained imports of industrial machinery for use in the manufacturing sector, in particular, grew by an estimated 238% in real terms in the first nine months of 1986 over the same period last year, following a decline of 4% in 1985

(5).

Re-exports

2.11

(6)

Re-exports

have

increased

again since April

1986, after having declined in the first quarter of the year. At $32,320 million, the value of re-exports in the

third quarter of 1986. was 24% higher than in the third quarter of 1985. This growth was made up of an estimated increase of 4% in prices, and a growth rate of about 20% in real terms. The recovery in re-exports was attributable, in part, to China's recent efforts in promoting its exports, resulting in more of its exports being channelled through Hong Kong to the overseas markets.

(5)

/Growth

Year-on-year growth rates in

in real terms of retained

retained imports of industrial machinery for use in the manufacturing sector and of domestic exports (%):

1982

1983

1984

1985

1986 Jan-Sept

(6)

Retained imports of industrial machinery for use in the manufacturing sector

Domestic

exports

-26

19

27

-4

23

CAREE

-3

14

17

-5

13

Re-exports are those products which have previously been imported into Hong Kong and subsequently re-exported without having undergone in Hong Kong any manufacturing process which changes permanently the shape, nature, form or utility of the product.

15

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