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HK's exports rise 9.4% on mainland trade
( 2003-11-26 10:02) (Agencies)

Hong Kong's exports grew at their fastest annual rate in October for four months, boosted by the mainland's surging trade with the rest of the world and providing further evidence that the local economy is on the mend.

But the value of total exports shrank in the three months to end-October against the previous quarter, failing to keep up with the blistering growth rate set in the summer months.

"Growth in merchandise exports accelerated again in October... underpinned by continued buoyancy in intra-regional trade," the government said in a statement yesterday.

The value of exports grew by 9.4 per cent in October compared to the same month last year, well above a median forecast for a 6.8 per cent expansion in a Reuters poll.

But for the three months to end-October, exports fell 2.2 per cent compared to the preceding three months on a seasonally-adjusted basis, the second straight quarter-on-quarter contraction. Analysts had expected a 1 per cent contraction over the quarter.

"Booming Chinese exports are still the main driving force in Hong Kong's exports, and the future of our exports all depends on what happens on the mainland," said Henry Tsoi, senior economist at Hang Seng Bank.

Imports grew by 10.2 per cent in October compared to the same month last year, and by 1.3 per cent quarter-on-quarter, reflecting a visible pick up in domestic demand, the government said.

Hong Kong's trade deficit fell slightly to HK$4.2 billion (US$538 million) in October compared with HK$4.6 billion (US$589 million) in September.

Beijing's move in recent months to relax rules on visitors from the mainland coming to Hong Kong has helped revive the territory's badly battered retail sector following the SARS viral outbreak earlier this year.

Hong Kong's exports have been growing robustly over the last few months, underpinning the tourism-led economic rebound, although the pace of growth in exports has been slower than the double digit annual expansion rates seen during the summer months.

The territory has lost some of its sea port business to neighbouring Shenzhen in recent months due to lower costs across the border.

The mainland's exports surged 36.7 per cent year-on-year in October, while Singapore's grew by 20.6 per cent, and Taiwan's exports expanded 14.2 per cent, its strongest performance in three years.

About 90 per cent of Hong Kong's exports comprise re-exports of goods moving to or from the mainland.

 
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