CONFIDENTIAL #B
12
Domestic exports to China accounted for 17% of Hong Kong's domestic exports in the first half year of 1988; the corresponding proportion for 1987 was 14%. Re-exports to China accounted for 33% of Hong Kong's total re-exports in
the first half year of 1988; the same as in 1987.
26.
The very rapid growth in Hong Kong's domestic exports and re-exports to China in the first half year of 1988 is shown in the table below. A large proportion of this growth was related to the strong growth of domestic consumption in China, though outward processing activities, particularly in the Pearl River Delta region,
also contributed. Outward processing activities may have grown more slowly in 1988, given the slow-down in the growth of Hong Kong's domestic exports to its overseas
markets. However, the growth of that part of Hong Kong's exports to China which are to meet its local demand is expected to be sustained, in view of the increased
purchasing power in China following several years of rapid economic growth.
Year-on-
Year-on-
Domestic
exports to China
year growth
Re-exports
year growth
rate #
to China
rate #
(HK$Mn)
(૩)
(HK$Mn)
(8)
1987 Q1
5,552
77
11,808
48
Q2
6,852
63
14,228
47
Q3
7,378
52
15,746
53
Q4
8,090
39
18,388
42
Annual
27,871
55
60,170
47
1988
Q1
6,844
23
16,814
42
Q2
9,156
34
22,230
56
H1
15,999
29
39,044
50
# in money terms
CONFIDENTIAL *