TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 141

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

GF 323

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20

31.

In the first three quarters of 1988 China

remained the second largest market for Hong Kong's

domestic exports (17% of the total) and the largest market for Hong Kong's re-exports (34% of the total).

32.

The rapid growth in Hong Kong's domestic exports

and re-exports to China in the first three quarters of

1988 is shown in the table below. A large proportion of

this growth was related to the strong growth of domestic consumption in China, though outward processing activities, particularly in the Pearl River Delta region,

also contributed. Outward processing activities may have grown more slowly in 1988, given the slowdown in the growth of Hong Kong's domestic exports to its overseas

markets. However, the growth of that part of Hong Kong's exports to China which are to meet its local demand could

well be sustained, in view of the increased purchasing

power in China following several years of rapid economic

growth.

Year-on-

Year-on-

Domestic exports to China (HK$Mn)

year growth

rate #

(8)

Re-exports to China

year growth

rate #

(HK$Mn)

(8)

1987 Q1

5,552

77

11,808

48

Q2

6,852

63

14,228

47

Q3

7,378

52

15,746

53

Q4

8,090

39

18,388

42

Annual

27,871

55

60,170

47

1988

Q1

6,844

23

16,814

42

Q2

9,156

34

22,230

56

Q3

10,930

48

26,117

66

Q1

-

3

26,929

36

65,161

56

#

In money terms

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