}
G.F. 326
CONFIDENTIAL B
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12
Hong Kong's exports to China
#
Domestic Growth
Growth
exports
rate
Re-exports
rate
(HK$Mn)
(%)
(HK$Mn)
(8)
1985 Q1
3,912
97
11,812
149
Q2
4,006
57
12,826
132
Q3
3,604
22
10,940
51
Q4
3,667
-3
10,445
- 1
Annual
15,189
35
46,023
64
1986 Q1
3,136
-20
7,964
-33
Q2
4,213
5
9,664
-25
Q3
4,855
35
10,276
-6
Q1
Q3
12,204
6
27,903
-22
# in money terms
20.
Domestic exports to China started to pick up in
the second quarter of 1986 and grew strongly in the third
quarter. At a value of HK$4,855 million in the third
quarter, these domestic exports were 35% higher than in
the same quarter last year. A growth of such a magnitude
is impressive considering that China's import controls
still remain in force. It is likely that a significant part of this growth was related to increased outward processing activities commissioned by Hong Kong
manufacturers, in line with the strong demand for Hong
Kong's products overseas. Moreover, the strong Yen may have induced China to switch from Japanese imports to cheaper imports from other sources, such as Hong
CONFIDENTIAL #