TNAG-2467-FCO40-3591-Economic-situation-in-Hong-Kong-1992 — Page 84

Hong Kong Economic & Financial Round-up

HONG KONG ECONOMY

Issue No. 10/92

Overview

In August, re-exports remained robust while domestic exports rose slightly. Imports continued to show a marked increase.

2.

After a temporary easing earlier this year, the labour market tightened up again in recent months. On the price front, consumer price inflation moderated further in August.

3.

Local money market interest rates remained soft during September. The market exchange rate of the Hong Kong dollar against the US dollar moved within a narrow range close to the linked rate. The overall exchange value of the Hong Kong dollar, as indicated by the effective exchange rate index, rose slightly during September.

4.

As the outcome of the Sino-British negotiations on the financial arrangements for the new airport and related projects and of the US-China trade

(1) negotiations under Section 301 of the US Trade Act remained unclear

share prices fell further during September amidst a sharp decrease in market turnover.

External trade

5.

Re-exports rose sharply by 31.1% in value terms in August over a year earlier, following an increase of 25.3% in July. The value of domestic exports also showed a slight increase of 2.3% in August, having risen by 1.0% in July. Meanwhile, the value of imports increased by 18.9%. The corresponding increase in July was 23.0%.

(1)

The Section 301 issue was settled on 10 October with the signing of the Memorandum of Understanding Concerning Market Access by the United States and China governments.

1