Hong Kong recovery surges ahead despite uncertainty

Press, 23 November 1983, Page 42

Hong Kong recovery surges ahead despite uncertainty

NZPA Hong Kong Hong Kong’s export-led recovery is surging ahead in spite of the uncertainty created by the continuing negotiations over the territory’s future. Government statistics released recently showed substantial growth in nearly every market and category for the nine months to September 1983. But for New Zealand, the figures were less cheering, indicating the downward trend evident earlier in the year was continuing. Exports to New Zealand from Hong Kong were down only slightly, but New Zealand imports to Hong Kong declined about 17 per cent on the corresponding period last year. Hong Kong exported $HK285.1 million ($57

million) to New Zealand to September this year, marginally down from $HK286.7 ($57.34 million) in the same period last year. However, imports from New Zealand were $HK361.8 million ($72.36 million), well down on last year’s $HK436.2 million ($87.24 million). Lower dairy and meat sales were believed to account for much of this year’s decline in New Zealand exports to Hong Kong. Exports to Hong Kong’s main customer, the United States, rose 34 per cent, exports to Britain were up 15 per cent, to West Germany, up 10 per cent, and to China, 51 per cent. Exports to Japan and Canada showed healthy growth, with only Australia, among Hong Kong’s main trading partners, bucking the trend with a 9 per cent drop in last year. China remains Hong Kong’s biggest re-export

market and source of imports. Clothing is still Hong Kong’s biggest export earner, with plastics, toys, jewellery, artificial flowers, and other miscellaneous items making up the second-biggest category. The fastest growth area was the telecommunicationsstereo category. But in spite of the encouraging economic news and the stability of the Hong Kong dollar, analysts said these factors alone would not be sufficient to bring the overseas investment and trading volume the Hong Kong Stock Market needed for healthy liquidity and the successful flotation of new issues. Overseas investors were still shy of making commitment to the volatile local market because of the political risks and fluctuations involved while the issue of the territory’s future with China after 1997 remained unresolved.