CONFIDENTIAL #
21
27.
China remained the largest supplier of Hong Kong's imports in the second quarter of 1987, accounting
(13) for 31% of Hong Kong's total imports. About 69%
of
the goods imported from China in the second quarter of 1987 were subsequently re-exported. Re-exports of China origin accounted for 46% of Hong Kong's total re-exports in the second quarter of 1987. Coupled with the 33% share of Hong Kong's re-exports by market, altogether China accounted for nearly 80% of Hong Kong's re-exports whether
as a market or as a source.
28.
Analysed by products, imports from China of telecommunications and sound recording apparatus,
electrical machinery, miscellaneous manufactured articles, travel goods and handbags, textile yarn and fabrics, and clothing all recorded substantial increases in the second quarter of 1987 over the same quarter in 1986 (see table
for details).
(13) This is an over-estimate; the re-export margin
cannot be deducted before calculating the share of imports from China which were subsequently re-exported.
A 1