TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 237

.6

Domestic exports to China continued to increase and

accounted for 6% of the value of Hong Kong's total domestic

exports. At $2,497 million in the first half of 1983, the value of domestic exports to this market increased by 378 compared with the same period last year. After taking into

account the effect

the effect of an estimated increase of 7% in prices,

there was an increase of about 29% in real terms. Domestic

exports to China consisted mainly of textile yarn and fabrics,

clothing, watches and clocks and metal manufactures, and thus

fell largely in the category of raw materials and

semi-manufactures. Though the extent is not known, some of

this increase in exports to China was attributable to the compensation trade and processing arrangements between Hong Kong and China (5).

2.7

At $1,590 million in the first half of this year,

the value of domestic exports to Japan was 17% higher than in

the first half of 1982. After discounting for the effect of

an estimated increase of 12% in prices, the growth rate was

about 48 in real terms. This represents a significant improvement on the negative growth rate in real terms recorded for 1982. The depreciation of the Hong Kong dollar against the Yen by 22.8% during the last twelve months might have

helped to boost domestic exports to this market. Domestic

exports of electronic components and metal ores and scrap increased substantially in real terms. Domestic exports of

other items (including fish and fish preparations, and toys

and games), which acccounted for 59% of the total domestic exports to this market, also increased by 3% in real terms.

/Growth

(5) According to information kept by the Trade Department, in the first half of this year, 109 certificates of Hong Kong Origin involving outward processing arrangement were issued for products valued at $8.5 million. This figure excludes domestic exports to China for processing and subsequent re-importation into Hong Kong where Hong Kong origin certification for the final product is not required.