The Economy 47
Hong Kong have created remarkable growth in incomes and employment in both Hong Kong and on the Mainland.
Visible trade between Hong Kong and the Mainland has soared by 231 times since 1978, or an average annual rate of 19 per cent in value terms. Nevertheless, affected by the global economic downturn, visible trade with the Mainland recorded a drop of 10 per cent in 2009 (Chart 7), while Hong Kong's total trade declined by 12 per cent over the same period. In 2009, Hong Kong and the Mainland were ranked the world's 11th and second largest trading entities respectively.
Chart 7
Visible Trade between Hong Kong and the Mainland
HK$ Billion
Per cent
1,000
25
900
Total trade value (left scale) Year-on-year rate of change (right scale)
20
800
15
700
10
600
5
500
400
300
200
100
-5
-10
-15
-20
-25
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1
2005
2006
2007
2008
2009
Since the Mainland adopted economic reform and an open door policy in 1978, there has been a rapid expansion in merchandise trade, especially re-export trade, between Hong Kong and the Mainland.
The Mainland has long been Hong Kong's largest trading partner, accounting for 49 per cent of Hong Kong's total trade value in 2009. Ninety per cent of Hong Kong's re-export trade was related to the Mainland as a market or a source. Reciprocally, Hong Kong was the Mainland's fourth largest trading partner (after the European Union, United States and Japan), accounting for nearly 8 per cent of the Mainland's total trade value in 2009.
Hong Kong is also a principal gateway to and from the Mainland for business. and tourism. The number of trips made by foreign visitors to the Mainland through Hong Kong rose by a cumulative 53 per cent in the past 10 years to 3.8 million trips. in 2009. Correspondingly, the number of trips made by Mainland residents to, or through, Hong Kong rose by nearly five times over the decade to 18 million trips in 2009.
Hong Kong continues to be the largest external investor in the Mainland. According to the Mainland's statistics, the cumulative value of Hong Kong's realised