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24.

Statistics on Hong Kong's imports,

retained

imports and re-exports of China origin are given below:

Year-on- Imports

year

growth rate in

of China origin retained in Hong

Year-on-

year growth rate in

Re-exports

of China

Year-on-

year growth rate in

Imports

of China

money

origin

terms

Kong*

money terms

origin

money terms

(HK$Mn)

(%)

(HK$Mn)

(%)

(HK$Mn)

(%)

1990 Annual 229,992

21

19,105

-20

240,410

28

H1

100,529

16

10,710

-22

102,393

25

H2

129,463

24

8,395

-17

138,017

30

1991 Q1

55,552

24

4,839

5

60,086

31

Q2

70,216

26

7,965

30

73,757

Q3

77,592

26

2,947

-8

88,441

Q1-Q3

203,359

25

15,751

13

222,285

31

F833

30

*

For analytical purposes, а re-export margin is adopted in deriving the values and growth rates of retained imports. This margin tends to vary amongst commodities and between different

periods.

25.

On top of the high level recorded in 1990, the

value of Hong Kong's re-exports of China origin showed a

further substantial increase, by 31% in the first three

quarters of 1991 over the same period last year. During

the first three quarters of 1991, over 90% of Hong Kong's

imports of China origin were subsequently re-exported. The

continued rapid growth in re-exports of China origin was

largely due to the expansion of outward processing

activities, apart from the efforts spent by the government

in promoting China's own exports. Feedback from Hong Kong

manufacturers reveals that nearly all of those who are

outward processing arrangements prefer to have

products returned to Hong Kong and then

as re-exports, rather than shipping the goods

engaged in

the finished

shipped out

out directly

from China. Inadequate port facilities and

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