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In the fourth quarter of 2006, 33% of Hong Kong's total exports to the mainland of China (the Mainland) were for outward processing. The proportion was 43% for domestic exports and 33% for re-exports. On the other hand, 62% of Hong Kong's imports from the Mainland were related to outward processing, according to statistics released today (March 20) by the Census and Statistics Department (C&SD). Over the same period, 79% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
The corresponding proportions for exports to the Mainland in the fourth quarter of 2005 were 39% for total exports, 56% for domestic exports and 38% for re-exports; whilst proportions for imports from the Mainland and for re-exports of Mainland origin to other places were 66% and 80% respectively.
Taking the year 2006 as a whole, 35% of Hong Kong's total exports to the Mainland were for outward processing; the figure was 52% for domestic exports and 35% for re-exports. On the other hand, 64% of Hong Kong's imports from the Mainland were related to outward processing. Over the same period, 81% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
The corresponding proportions in 2005 were 38% for total exports to the Mainland, 56% for domestic exports to the Mainland, 38% for re-exports to the Mainland, 66% for imports from the Mainland and 79% for re-exports of Mainland origin to other places.
In value terms, $105.2 billion of Hong Kong's total exports to the Mainland in the fourth quarter of 2006 were for outward processing, representing a slight decrease of 1% over the fourth quarter of 2005. The value of domestic exports to the Mainland for outward processing fell significantly by 42% to $4.2 billion whilst the value of re-exports to the Mainland for outward processing went up by 2% to $101.0 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 10% to $205.4 billion. On the other hand, $219.8 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, representing an increase of 11%.
For the whole year of 2006, $409.9 billion of Hong Kong's total exports to the Mainland were for outward processing, representing an increase of 6% over 2005. The value of domestic exports to the Mainland for outward processing fell significantly by 17% to $20.7 billion whereas that of re-exports to the Mainland for outward processing increased by 7% to $389.2 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing increased by 11% to $769.3 billion. On the other hand, $814.8 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, which represents an increase of 8%.
The estimates for the fourth quarter and the whole year of 2006 and the corresponding changes over the same period in 2005 are summarised in the attached table.
Information on trade involving outward processing in the Mainland is collected in a sample survey conducted by the C&SD. For the purpose of the survey, exports to the Mainland for outward processing refer to raw materials or semi-manufactures exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
Imports from the Mainland related to outward processing refer to processed goods imported from the Mainland, of which all or part of the raw materials or semi-manufactures have been under contractual arrangement exported from or through Hong Kong to the Mainland for processing.
Re-exports of Mainland origin to other places involving outward processing in the Mainland refer to processed goods re-exported through Hong Kong, of which all or part of the raw materials or semi-manufactures have been exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
In interpreting the statistics, it should be noted that the value and proportion of imports from the Mainland and re-exports of Mainland origin to other places involving outward processing in the Mainland refer to those of the entire goods instead of just the value added contributed by outward processing in the Mainland.
A sample of import/export declarations in respect of Hong Kong's trade with the Mainland and Hong Kong's re-exports originated in the Mainland to other places is selected for enumeration to obtain the required information from the establishments concerned. All imports and exports of goods (not including transhipments and goods-in-transit) are recorded as external trade, irrespective of whether the goods are associated with outward processing or not. The findings of the survey, however, facilitate a more informed analysis of the nature of Hong Kong's trade with the Mainland. In this respect, the survey results are a useful supplement to the regular trade statistics.
The above survey results will be included in the March 2007 issue of the "Hong Kong External Merchandise Trade". The publication, in download version, will be available in mid-May 2007. Users can download this publication free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD.
Print version of this publication will also be available for sale at HK$92 per issue in mid-May 2007. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered a discount, at 85% of their original prices.
Enquiries on the survey results may be directed to the Trade Surveys and Research Section of the C&SD (Tel: 2582 5503).
Ends/Tuesday, March 20, 2007
Issued at HKT 16:15
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