THE ECONOMY
shares. Since mid-1993, H shares have been listed in Hong Kong's stock market by large state-owned enterprises in the Mainland. At end-1997, 39 such enterprises were listed on the Hong Kong Stock Exchange, raising a total equity capital of $59 billion.
The Economy in 1997
External Trade
Total exports grew by 6 per cent in real terms in 1997, slightly better than the 5 per cent growth in 1996. Growth in the second half of the year was faster than in the first half. In particular, there was a notable recovery in domestic exports.
Within total exports, re-exports rose by 7 per cent in 1997, slightly slower than the 8 per cent increase in 1996. This was nevertheless compensated by a marked recovery in domestic exports, reversing an 8 per cent decline in 1996 to an increase of 2 per cent in 1997. Given the heavier weighting of re-exports in total exports, the share of re-exports in this total remained virtually unchanged, at 85 per cent in both 1996 and 1997, notwithstanding the pick-up in domestic exports between these two years.
Exports to the two largest markets the USA and the Mainland showed notable growth of 8 per cent and 9 per cent respectively in 1997, underpinned by the generally robust demand in these two economies. On the other hand, exports to Japan and the UK slackened considerably from the preceding year. Their respective growth rates were minus 1 per cent and 5 per cent. Exports to Germany also weakened further, declining 2 per cent. The substantial currency depreciation in the East Asian economies since mid-1997 have not materially affected Hong Kong's overall export performance so far.
Chart 7
Per cent
50.0
Re-exports
Growth in Hong Kong's visible trade (year-on-year growth rate in real terms)
40.0
30.0
20.0
10.0
0
-10.0
Imports
Total exports
Domestic exports
50
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Export performance was slightly better in 1997, with re-exports growing moderately and domestic exports recovering markedly.
Consumer goods, and raw materials and semi-manufactures remained the two largest end-use categories of Hong Kong's exports, accounting for 48 per cent and 29 per cent respectively of the total value in exports in 1997. This was followed by capital goods (20 per cent).
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