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China's
inflation is
expected to
have
little impact on Hong Kong's outward
The depreciation offset the higher
Similarly, relatively processing activities in Guangdong.
of the Renminbi should help to
local costs in the province, thereby maintaining the external price competitiveness of the products. As for those Hong Kong companies engaged in sales,
whether in goods
services, to China's domestic
market, they may
receive a lower sales value in
foreign currency terms due to the Renminbi
depreciation, but the prices of their products may well be raised along with the higher inflation in China (paragraph 28).
or
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