6.
In real terms, re-exports registered a substantial growth of about 32% in the first quarter of 1992 over a year earlier, while domestic exports showed virtually no change. Meanwhile, imports recorded a marked increase of 22%.
7.
In the first four months of 1992, domestic exports to China continued to surge, while those to the United States revived somewhat. On the other hand, domestic exports to Japan registered a slight decline, and those to Germany and the United Kingdom dropped sharply.
Labour market
8.
The seasonally adjusted unemployment rate in the three months ending April, at 2.5% (provisional), was 0.6 of a percentage point higher than in the preceding quarter. The underemployment rate, at 2.2% in the three months ending April, was also 0.4 of a percentage point higher.
Prices
9.
From 9.5% in March, the year-on-year rate of increase in the CPI(A) moderated further to 8.9% in April. The deceleration in April was partly due to the the less rapid increase in rentals. The increase in public transport fares in late March 1991, which thus constituted a high base of comparison for April this year, also contributed.
Financial sector
10.
Following the trend in late April, local money market interest rates softened further during May. For example, the 3-month interbank rate declined from 4 5/16% at end-April to 3 11/16% at end-May. Meanwhile, the 3-month Eurodollar deposit rate at end-May stood at 4%, and was unchanged from a month earlier. The differential between the two rates thus reversed to 5/16 of a percentage point in favour of the US dollar, from 5/16 of a percentage point in favour of the Hong Kong dollar at end-April.
11.
The various deposit rates administered by the Hong Kong Association of Banks and the best lending rate charged by the two note-issuing banks were lowered twice, by half of a percentage point and one percentage point respectively, during May. At the end of the month, the savings, 3-month and 12-month deposit rates were 2%, 3 114% and 4 1/4% respectively. The best lending rate stood at 7%.
12.
The market exchange rate of the Hong Kong dollar moved within a narrow range from HK$7.734 per US$ to HK$7.758 per US$ during May. It closed the month at HK$7.744 per US$.
13.
Supported by favourable corporate results and the interest rate cuts, local share prices surged. The Hang Seng Index rose to a historic high of 6 083 on 27 May. At 6 080, it closed the month 710 points higher than at end-April. Average daily turnover also rose sharply, from $2.58 billion in April to $4.37 billion in May.
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