Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Thursday, February 5, 1998
CONTENTS
========
1. Govt calls for public support to remove fire hazards
2. Confidence in reaching housing target
3. HK welcomes Canada's textiles liberalisation initiatives
4. NPC Chairman to visit local deputies
5. Hong Kong as a Virtual Financial City
6. 92 summonses issued for not inspecting electrical installation
7. Update on avian flu
8. CLEIC member appointed
9. Blankets for street sleepers
10. Study on urban design guidelines for Hong Kong
11. Funding scheme for study tours to China
12. Volume and price statistics of external trade in Nov 97
13. Statistics on trade involving outward processing in the Mainland
14. Tender results for second block of mortgage purchase
1. Govt calls for public support to remove fire hazards
****************************************************
The Chief Executive, Mr Tung Chee Hwa, called a
special meeting this morning (Thursday) with the Chief
Secretary for Administration and other senior officials to
map out short term and long term measures to remove fire
hazards in residential buildings.
At the meeting, Mr Tung said: "We care for the safety
of the people. As a caring and modern society, fire
hazards which can be prevented must not be tolerated. But
this must be a joint responsibility between building
occupants and owners on one hand, and Government on the
other.
"We must instill a strong sense of responsibility
among the general public in keeping their homes free from
fire hazards. To do so, we need the cooperation from each
and every owner and occupier of our private buildings for
the full implementation of fire safety measures.
"In the interest of the community, I call upon each
and every citizen to lend your full support in removing
fire hazards.
"We are studying the proposal of mandating the
establishment of a building management body by the owners
in every private building to improve the fire safety of
their own property. We shall give careful consideration
to its feasibility and implications.
"Over the years, the Government has been working hard
to promote the establishment of Owners Incorporations in
residential buildings. They provide a useful vehicle for
the implementation of building management measures. We
shall step up our efforts in this regard in our drive to
improve fire safety," the Chief Executive said.
"It is time for the community to do more in
protecting their own lives and properties, through a
greater awareness of fire safety measures and more active
participation in the management of their own building.
Ultimately, building occupants and owners must make it
their business to care for their properties by removing
fire hazards," he added.
The meeting also agreed on a number of short term
measures. They include:
* Relevant government departments will inspect all
old non-commercial private buildings in the territory to
identify potential fire hazards which threaten lives and
properties. They will jointly persuade the occupants and
owners to remove such hazards voluntarily, failing which
prosecution action will be taken.
* Based on the findings of these inspections, the
Government will consider the need for legislation or other
measures to improve fire safety in non-commercial private
buildings.
* The Government will launch a major publicity
campaign to enhance public awareness of the threat of fire
and the need to step up fire prevention.
* The Government will encourage the Owners
Incorporation or Mutual Aid Committee in each private
building to appoint a fire safety officer among their
members to help ensure compliance with fire safety
requirements by the occupants.
* The Government will also urge all building
management companies to step up their efforts in ensuring
fire safety in their client buildings.
"In the longer term, old buildings which do not meet
modern fire safety standards or other necessary standards
will need to be redeveloped as part of an urban renewal
scheme. We shall accord top priority to urban renewal and
press ahead with the implementation," Mr Tung said.
"We appreciate that this will take time and require
full cooperation from all parties affected. We must put
our efforts together in building a safer environment and
enhancing the quality of living for ourselves and our
future generations."
The Chief Secretary for Administration will oversee
efforts being made by relevant policy bureaux and
departments in the drive to ensure fire safety.
End
2. Confidence in reaching housing target
*************************************
The Director of Housing, Mr Tony Miller, today
(Thursday) reiterated his confidence in reaching the Chief
Executive's annual production target of 50,000 public
sector flats by 1998/99.
"All contracts for production in 1998/99 have been
let and construction is already in hand. So I foresee no
difficulty in lifting public sector production to the
50,000 unit level in that year," Mr Miller said.
"This will not be the first time that the public
sector has built this number of flats in a single year.
In fact, we averaged more than this for three years
running between 1988 and 1991."
Mr Miller, speaking at a luncheon meeting hosted by
the Y's Men's Club, explained that historically the
problem had been maintaining production at a consistently
high level.
"In the past, problems with land supply and
infrastructure coordination have led to uneven production.
This time last year, I was very concerned that a repeat of
these problems would lead to us slipping back below the
50,000 mark in 2002/03. Now I am not. Thanks to the work
of HOUSCOM under the chairmanship of the Financial
Secretary, we will be able to lift production above 50,000
and keep it there all the way through to 2005/06 and
beyond," he said.
Mr Miller went on to explain that public sector
production embraced housing produced for subsidized sale
or rent by both the Housing Authority and the Housing
Society, as well as flats built for sale under the
Government's Private Sector Participation Scheme.
Mr Miller said there was neither a need for nor a
likelihood of the public sector stepping in to make up for
any private sector slow down.
"The Government has pledged to ensure a steady and
sufficient land supply for private as well as for public
sector housing. Whether or not the private sector takes
up the opportunity is a matter for private developers in
the light of market conditions.
"Certainly the Housing Authority has no intention of
taking over the private sector's role. We serve a
completely different market sector, mass-producing smaller
standardized units," he added, emphasising that the
ultimate impact of the Government's production on the
market would be positive.
"While we must still look after families who cannot
afford to buy, our policies are increasingly directed
towards promoting ownership. In offering subsidized flats
for sale, we are helping families put their feet on the
first rung of the home ownership ladder.
"Thus a very large number of families who in the past
simply had no hope of owning, will in future be able to
trade up through the market. Certainly we are increasing
supply, but we are also facilitating the emergence of new
demand as well," he said.
Referring to the recently launched Tenants Purchase
Scheme, Mr Miller said that he was very pleased with the
response to the First Phase.
"The response has been overwhelmingly favorable,
exceeding even my most optimistic estimate. Over 70 per
cent of families in the six estates in Phase One have
signed and returned formal expressions of interest in
buying their flats. That is a tremendous vote of
confidence in the Scheme. In fact, only one estate is
below 70 per cent and that is one with a relatively large
number of elderly families living in smaller flats," he said.
The Housing Authority would review the position in
May after the completion of the first sales before
deciding on when to announce a second phase.
Expressing a personal view, he said he saw no reason
for artificially slowing sales down.
"Given the potential number of transactions involved,
there are some fairly obvious physical constraints but I
see no reason to slow the sales programme artificially.
If families are eager to buy, then I believe we should
proceed as quickly as possible to satisfy their aspiration
for ownership," he said.
Mr Miller believed that the Government's vision of a
society of 70 per cent home-owners was realistic.
"I have always been confident that it is, and the
response to the Tenants Purchase Scheme reinforces that
confidence. Half of Hong Kong's families are already home
owners. Just over one third currently live in public
rental housing. Transforming two thirds of them from
tenants into owner-occupiers, would achieve the target.
And more than two thirds of a very representative group of
them have just stated unequivocally that given the
opportunity they intend to buy," he said.
Mr Miller noted that in his October Policy Address,
the Chief Executive had asked the Housing Authority to
examine a number of other complementary ownership
initiatives in addition to the HOS and the TPS. These
included a Rent or Buy Scheme to allow Waiting List
applicants an option to purchase and expansion of the Home
Purchase Loan Scheme. He hoped work on these would be
completed by mid-year.
In addition, Mr Miller reminded his audience of
Government's increased assistance for the "sandwich
class".
"I have focused on public housing because that is the
area for which I am directly responsible. But I do not
want to give the impression that Government is directing
its assistance only at those eligible for public housing.
"Non-public housing tenants - so-called "White Form"
applicants - are already eligible to apply for Home
Ownership Scheme flats. Over 103,000 have so far
benefitted under the Scheme, and as production climbs so
will their share. Government has also pledged to build
30,000 Sandwich Class housing flats over the next few
years.
"Another 3,000 families will benefit from the
Sandwich Class Housing Loan Scheme this year, and, last
month, the Finance Committee of the Provisional
Legislative Council approved a commitment of $18 billion
for the new Home Starter Loan Scheme to be operated by the
Hong Kong Housing Society. This Scheme will offer about
6,000 loans each year," he said.
End
3. HK welcomes Canada's textiles liberalisation initiatives
********************************************************
Effective from January 1, 1998, Canada has accorded
ex-quota treatment to eight types of textile products from
Hong Kong.
In addition, Canada has also increased the 1998
restraint limit of Item 2 (winter outerwear) for Hong Kong
by 10 per cent.
"We welcome the liberalisation initiatives made by
Canada," Principal Trade Officer of the Trade Department,
Mr Ting Lup-wong, said today (Thursday).
"It means that Hong Kong exports of those eight types
of textile products are no longer required to be covered
by quota and restrained export license," he added.
The eight types of textile products include rainwear,
women's and girls' ensembles, saris, women's and girls'
knitted blouses and shirts, women's and girls' woven
blouses and shirts of silk, women's and girls' woven
blouses and shirts of vegetable fibre other than cotton,
children's blouses and shirts, and babies' coats, jackets
and rainwear.
Separately, the 1998 restraint limit of Item 2
(winter outerwear) for Hong Kong has been increased by 10
per cent.
"The 10 per cent increase which is made on top of the
normal growth rate for 1998 is permanent and subject to
the growth and flexibility provision as notified under the
World Trade Organisation Agreement on Textiles and
Clothing," Mr Ting said.
The Trade Department has already notified the trade
of the new measures.
The related control arrangements in respect of the
products concerned taking account of the Canadian
initiatives will be promulgated to the trade through
Notice to Exporters.
End
4. NPC Chairman to visit local deputies
************************************
The Chairman of the Standing Committee of the
National People's Congress (NPC), Mr Qiao Shi, will arrive
in Hong Kong on February 10 for a visit during which he
will meet Hong Kong deputies to the Eighth NPC and
deputies-elect to the Ninth NPC.
During his stay, Mr Qiao will also be meeting the
Chief Executive, Mr Tung Chee Hwa, principal officials of
the SAR Government, Members of the Executive Council and
the Provisional Legislative Council, as well as community
leaders. The SAR Government will host a lunch in honour
of Mr and Mrs Qiao.
He will visit a number of infrastructural projects.
End
5. Hong Kong as a Virtual Financial City
*************************************
Hong Kong can become the world's first Virtual
Financial City where all financial transactions will be
seamlessly and electronically connected. This is
envisioned by the Informal Working Group set up by the
Financial Secretary, Mr Donald Tsang, to study the long-
term strategy in the development of information technology
in the financial markets in Hong Kong.
Mr Tsang announced his vision of Hong Kong as a
service economy in his 1995/96 Budget. Realisation of
this vision requires the establishment of a world-class
financial technology infrastructure.
The Financial Secretary therefore decided to set up
an Informal Working Group comprising representatives from
both the private sector and the Government in late 1995 to
identify areas where Hong Kong's financial infrastructure
should be improved and to develop a vision of Hong Kong as
a Financial Technology Supercity for the 21st century.
In releasing the Report by the Informal Working Group
today (Thursday), Mr Tsang said: "To maintain Hong Kong's
status as a premier international financial centre in a
very competitive environment, it is imperative that we
should have an efficient and robust financial
infrastructure.
"We must take advantage of the superb
telecommunications infrastructure to adapt technology
towards the provision of superior services. The
Government will play a leading role in achieving the
ultimate goal of establishing a Virtual Financial City for
Hong Kong in the next century, but private sector
initiatives will also be essential," said Mr Tsang.
According to the report, Hong Kong should strive to
achieve straight-through processing whereby all financial
transactions are electronically processed in one go, from
the point of the first "deal" to final settlement and
confirmation. Straight-through processing will help
reduce costs and enhance risk and liquidity management.
This facilitates the development of electronic commerce
and electronic payments in Hong Kong.
The Informal Working Group recommends the
establishment of a FinNet, a secure Intranet built for
financial transactions throughout Hong Kong amongst all
financial institutions and authorised users to facilitate
electronic exchange of data in transaction, clearing,
settlement and custody. This will allow banks, securities
houses and their customers to have seamless transactions
between equity, bonds, derivatives and foreign exchange.
The Informal Working Group saw Hong Kong possibly
emerging as the first in the world to achieve DvP
(Delivery versus Payment), PvP (Payment versus Payment)
and TvP (Transfer of title versus Payment) electronically
and becoming the first Virtual Financial City. Such a
vision would put Hong Kong at the centre to provide
financial and other services for China and Asia.
By providing services to the public using information
technology, the Government would also reduce bureaucracy
and improve openness, said the report.
The Informal Working Group concluded in the report by
recommending the Government to carry out consultant
studies in five areas:
i) Identify any technical impediments and new
technical requirements for the implementation of straight-
through processing;
ii) Study the impact of electronic banking on
supervisory policy;
iii) Study how a secure network, FinNet can be
created that will facilitate straight-through processing
for the financial sector as a whole;
iv) Find out how linkages can be established between
securities and futures clearing houses and the interbank
Real-time Gross Settlement system to ensure robust
clearing and settlement in a seamless manner.
v) Explore how the Government can work with the
private sector to develop security standards such as
digital signatures; and examine how the proposed
Information Technology Bureau can adjust existing
legal, regulatory and infrastructural framework to foster
electronic commerce and payments.
Deputy Chief Executive of the Hong Kong Monetary
Authority, Mr Andrew Sheng; who chaired the Informal
Working Group, said: "I wish to thank members for their
effort and contribution and we are also indebted to those
experts whom the group called upon for technical advice."
End
6. 92 summonses issued for not inspecting electrical installation
**************************************************************
The Electrical and Mechanical Services Department
(EMSD) has so far taken out 92 summonses against the
owners' corporations and property management agents of
buildings for failing to inspect, test and certify their
communal electrical installations.
An EMSD spokesman said today (Thursday) that 29 of
them had pleaded guilty and paid fines ranging from $1,000
to $5,000.
"Building owners should comply with the law in their
own interests. The periodic test is necessary, for safety
reasons, to ensure that fire, electric shock or power
interruption in buildings due to unsafe electrical
installations can be minimised," the spokesman said.
Under the Electricity (Wiring) Regulations of the
Electricity Ordinance, an owner of a low-voltage fixed
electrical installation which carried an approved loading
exceeding 100A should have the installation inspected at
least once every five years.
The regulation came into operation on June 1, 1992,
and buildings completed before that date should have
complied with this provision by May 31 last year. The
maximum fine for breaching the regulation is $10,000.
Since June 92, the department has endorsed about
13,600 certificates issued by registered electrical
contractors.
"The result is not satisfactory as the number of
installations to be checked totals about 35,000," the
spokesman said.
"We understand that many buildings are either
arranging for or undergoing checks. The department is
receiving about 600 certificates for endorsement every
month.
"Nevertheless, we will step up our publicity campaign
to raise the owners' awareness of their responsibilities,
continue with the spot checks, enforcement of law and take
prosecutions when appropriate."
The first prosecution was successfully brought
against the owners' corporation and property management
agent of a building in Hung Hom in September last year.
The owners concerned have now completed the periodic test
of their electrical installations and are preparing the
test certificate for EMSD endorsement.
End
7. Update on avian flu
*******************
The Department of Health (DH) announced today
(Thursday) that there were no new cases of influenza A
(H5N1) today.
The total number of cases stands at 18 confirmed
cases.
The conditions of these cases remain the same as of
February 3.
End
8. CLEIC member appointed
**********************
The Government announced today (Thursday) that the
Chief Executive has appointed Mr Michael Ozorio, SC, as a
member of the Criminal and Law Enforcement Injuries
Compensation Boards (CLEIC) for two years from February 1,
1998.
The appointment will be published in the Gazette
tomorrow (Friday).
Mr Ozorio has been practicing law in Hong Kong since
1977 and became a Queen's Counsel in 1996 (subsequently
re-titled Senior Counsel).
Welcoming the appointment of Mr Ozorio as a member of
the CLEIC Boards, a spokesman for the Health and Welfare
Bureau said Mr Ozorio was very experienced in the area of
personal injuries compensation.
"This is particularly relevant to the work of the
Criminal and Law Enforcement Injuries Compensation Boards.
We are confident that Mr Ozorio will contribute to the
successful operation of the scheme," he added.
The Criminal Injuries Compensation Board and the Law
Enforcement Injuries Compensation Board are responsible
for administering the Criminal and Law Enforcement
Injuries Compensation Scheme.
The aim of the scheme is to provide cash assistance
to those victims suffering injuries, or their dependants
in the case of fatalities, arising from a criminal offence
involving the use of violence or the action of law
enforcement officers using a weapon in the execution of
their duty. The scheme is non-means tested.
The following is an updated membership list of the
boards:
Chairman
Mr Wong Fook-hum, Ronny, SC, JP
Members
Mr Au Yeung Sung-fan
Mr Chan King-sang, Edward, SC
Mr Chan Wai-to
Mr Cheung Man-ping, Mervyn
Mr Chow Wai-kam, Raymond, JP
Mr Chun Fei-pang
Mr Chung Wai-hung, Gerard
Dr Fan Sheung-tat
Mr Ho Fei-chi, Stephen, B.H
Mr Hung Ling-man, Raymond
Mr Kwok Lam-kwong, Larry
Mr Lam Kin-pui
Miss Dorothy Lau Wai-ling
Mr Leung Chung-por, David
Mr Liao Cheung-sang, SC, JP
Ms Lo Kit-yee, Katherine
Mr Lo Wei-on, Nicholas
Mr Ma Tao-li, Geoffrey, SC
Ms Mok Oi-lai, Alice, SC
Mr Michael Ozorio, SC
Dr Shiu Kin-ying, Patrick
Dr Tam Wing-kun, JP
Mr Tsui Fuk-sun, Michael
Miss Tsui Pui-man, Winnie
Miss Tsui Suet-mui, Connie
Miss Wan Lai-yau, Deborah, JP
Mr Wong Chi-keung, Johnny
Mr Wong Chun, Justein, JP
Mr Yau Chung-wan
Mr Yu Benjamin, SC
End
9. Blankets for street sleepers
****************************
Staff of the Social Welfare Department (SWD) last
(Wednesday) night distributed a total of 416 blankets to
street sleepers in a territory-wide operation during the
cold weather.
Of the total, 119 were distributed on Hong Kong
Island, 31 in East Kowloon, 199 in West Kowloon, 38 in New
Territories East and 29 in New Territories West.
At the same time, the departmental hotline extended
its service overnight to render assistance and advice to
those in need.
During the period between 10 pm yesterday and 9 am
today, seven calls requesting help during the cold spell
were received and in response to the calls, SWD staff also
reached out to offer assistance to the people in need.
End
10. Study on urban design guidelines for Hong Kong
**********************************************
The Planning Department has commissioned a
consultancy study on urban design guidelines to make Hong
Kong's built environment both functionally efficient and
aesthetically pleasing.
The study will take into account urban design
principles and guidelines commonly encountered in
preparing development proposals.
The consultants will have to prepare examples of
various types of layouts for different uses such as
commercial, residential, industrial, village-type, mixed-
use, recreational and waterfront for illustrative
purposes.
The study will also review the current mechanism for
implementation of urban design proposals and propose
improvement measures.
A set of guidelines will then be produced to help
town planners and related professionals in their design
works and in considering the merits and impacts of major
development proposals.
The study is due for completion in January next year
at a cost of $ 1.2 million. An agreement was signed by
the Director of Planning, Dr Peter Pun, and a
representative from the consultancy firm RMJM Hong Kong
Limited on February 3 (Tuesday).
End
11. Funding scheme for study tours to China
***************************************
The Commission on Youth is launching a funding scheme
to sponsor community organisations in arranging study
tours for local youths to the Mainland.
Known as the Community Participation Scheme for
Organising Study Tours to the Mainland, the scheme is
aimed at enhancing the youth's understanding of China
through study tours which may involve rendering of
voluntary services to Mainland recipients.
A spokesman for the Commission said today (Thursday):
"The proposed tours should aim at imparting more knowledge
to participants about the history, culture and the
political, economic and social system of China as well as
her development and the people's livelihood.
"Registered non-profit-making organisations or their
sub-groups planning to organise such tours for youth aged
between 12 and 24 in Hong Kong can apply for subsidy under
the scheme."
Funds will be granted according to the size and
programme content of the tours. Each application can
propose more than one study tour. The maximum funding for
a single application will be $200,000.
All tours should be completed before January 15,
1999. Successful applicants are required to submit a
report to the Commission after the tours.
Interested organisations should send in their
applications outlining the objectives and content of the
proposed tours, the budget and the total amount applied
for under the scheme to the Secretariat of the Commission
on Youth, 31st floor, Southorn Centre, Wan Chai before
February 28, 1998. Successful applicants will be informed
in writing in March.
Information leaflets on the scheme and application
forms are now available from district offices. Enquiries
can be made by telephoning 2835 1736.
End
12. Volume and price statistics of external trade in Nov 97
*******************************************************
In November 1997, the volume of Hong Kong's re-
exports increased by 8.5% over a year earlier, while that
of domestic exports increased by 3.3%. Taken together,
the volume of total exports increased by 7.7%.
Concurrently, the volume of imports increased by 3.9%.
The above figures are included in the volume and
price statistics of external trade for November 1997
released today (Thursday) by the Census and Statistics
Department.
Comparing the first 11 months of 1997 with a year
earlier, the volume of Hong Kong's re-exports increased by
6.7%, while the volume of domestic exports increased by
1.6%. Taken together, the volume of total exports
increased by 5.9%. Meanwhile, imports increased by 7.1% in
volume.
The growth in volume of trade is derived from the
growth in trade value with the effect of price changes
discounted.
Comparing November 1997 with November 1996, the
prices of re-exports and domestic exports decreased by
1.4% and 2.4% respectively. Import prices also decreased
by 2.5%.
As regards price changes in the first 11 months of
1997 over the same period a year earlier, the prices of
re-exports and domestic exports decreased by 1.5% and 2.3%
respectively, while import prices decreased by 2.2%.
Price changes are reflected by changes in unit value
indices which are compiled based on average unit values
or, for certain commodities, specific price data.
The terms of trade index, defined as the ratio of
total export price index to import price index, rose by
1.0% in November 1997, and by 0.6% in the first 11 months
of 1997 over the same period a year earlier.
The changes in the value, unit value and volume of
re-exports by end-use category are shown in Table 1.
Analysed by end-use category, increases in re-export
volume in November 1997 over a year earlier were recorded
for all categories, viz. foodstuffs (+31%); capital goods
(+17%); fuels (+12%); consumer goods (+6.1%); and raw
materials and semi-manufactures (+4.5%).
Over the same period of comparison, the prices of re-
exports for all end-use categories, viz. fuels;
foodstuffs; raw materials and semi-manufactures; capital
goods; and consumer goods decreased by 16%, 2.7%, 2.3%,
1.7% and 0.3% respectively.
The changes in the value, unit value and volume of
domestic exports by principal commodity group are shown in
Table 2.
Comparing November 1997 with November 1996, the
volume of domestic exports of textile made-ups and related
articles; and electronic components recorded notable
increases of 60% and 22% respectively. On the other hand,
the volume of domestic exports of radios of all kinds and
footwear decreased significantly by 79% and 52%
respectively.
Over the same period of comparison, domestic export
prices of metal ores and scrap showed a notable increase
of 14%. On the other hand, domestic export prices of
electronic components decreased significantly by 14%.
The changes in the value, unit value and volume of
imports by end-use category are shown in Table 3.
The import volume of foodstuffs increased by 3.6% in
November 1997 compared with November 1996.
Significant increases in import volume were noted of
soya bean oil, peanut oil, vegetable oil and lard; and
rice. However, notable decreases were recorded in the
import volume of animals of the bovine species, live; and
sugar.
Over the same period of comparison, the import volume
of consumer goods decreased by 1.9%.
Notable decreases in the import volume were noted of
tobacco manufactures and footwear. However, the import
volume of passenger motor cars; and cameras, flashlight
apparatus and supplies for photography increased
significantly.
The import volume of raw materials and semi-
manufactures increased by 3.5% in November 1997 compared
with November 1996.
Rapid increases in import volume were noted of wood,
lumber and cork; and thermionic, cold cathode or photo-
cathode valves and tubes, diodes, transistors, etc. and
parts thereof. However, significant decreases were noted
of raw cotton; and wool and other animal hair.
Imports of fuels decreased by 9.6% in volume in
November 1997 compared with November 1996.
As regards capital goods, the volume of imports
increased by 16% in November 1997 over November 1996.
Notable increases were recorded in the import volume
of scientific, medical, optical, measuring, and
controlling instruments and apparatus; and office
machines. The import volume of transport equipment; and
industrial machinery, other than textile and electrical
machinery, however, decreased.
Comparing November 1997 with November 1996, import
prices of fuels; capital goods; consumer goods;
foodstuffs; and raw materials and semi-manufactures
decreased by 5.0%, 3.0%, 2.6%, 2.3% and 2.0% respectively.
Details of the above statistics are published in the
November 1997 issue of the "Hong Kong Trade Index
Numbers".
The report will be on sale around next Monday
(February 9) at HK$13 per copy at either the Government
Publications Centre on the Ground Floor, Low Block,
Queensway Government Offices, 66 Queensway; or the
Publications Unit of the Census and Statistics Department
on the 19th Floor, Wanchai Tower, 12 Harbour Road, Wan
Chai, Hong Kong.
Enquiries regarding regular subscription of this
report may be directed to the Publications (Sales) Office
of the Information Services Department on the 28th floor,
Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong (Tel
No: 2598 8194).
For enquiries on trade indices, please contact the
Census and Statistics Department on tel no: 2582 4918.
Table 1: Changes in re-exports by end-use category
--------------------------------------------------
Comparing Nov 97 Comparing Jan-Nov 97
with Nov 96 with Jan-Nov 96
% changes % changes
---------------- --------------------
Unit Unit
End-use category Value Value Volume Value Value Volume
----------------------------------------------------------
Foodstuffs 20.2 -2.7 31.0 4.6 -0.3 6.0
Consumer goods 5.9 -0.3 6.1 2.8 -0.5 3.0
Raw materials and 1.2 -2.3 4.5 4.5 -2.4 7.4
semi-manufactures
Fuels -5.7 -16.0 12.5 13.9 -3.5 17.5
Capital goods 14.2 -1.7 16.9 9.7 -2.9 13.5
ALL COMMODITIES 6.3 -1.4 8.5 4.7 -1.5 6.7
----------------------------------------------------------
Table 2: Changes in domestic exports by principal commodity group
----------------------------------------------------------------
Comparing Nov 97 Comparing Jan-Nov 97
with Nov 96 with Jan-Nov 96
% changes % changes
-------------------- ---------------
Unit Unit
Commodity group Value Value Volume Value Value Volume
----------------------------------------------------------
Clothing 3.5 -1.5 5.2 3.4 -1.5 5.2
Textile fabrics -10.8 1.7 -12.8 -6.7 0.7 -8.5
Textile yarn and 4.1 -6.8 11.7 -10.4 -3.9 -6.9
thread
Textile made-ups 58.4 -2.3 60.4 -47.8 0.1 -47.3
& related articles
Radios of all kinds -79.3 -6.2 -78.9 -60.7 -3.6 -59.4
Electronic components 7.0 -14.4 21.9 5.8 -13.0 17.3
Footwear -54.3 -5.8 -51.7 -17.0 -6.2 -15.0
Metal manufactures -13.0 -1.1 -11.7 -13.1 * -13.6
Metal ores and scrap 5.3 13.6 -7.7 -9.1 10.3 -19.4
Watches and clocks -1.0 -0.5 * -9.6 0.9 -9.9
Travel goods, hand- -24.0 -1.8 -23.3 -40.5 1.1 -41.0
bags and similar
articles
Domestic electrical -32.7 4.6 -39.8 -18.6 0.6 -20.3
appliances
ALL COMMODITIES -0.1 -2.4 3.3 -0.6 -2.3 1.6
----------------------------------------------------------
* less than 0.05%
Table 3: Changes in imports by end-use category
-----------------------------------------------
Comparing Nov 97 Comparing Jan-Nov 97
with Nov 96 with Jan-Nov 96
% changes % changes
---------------- --------------------
Unit Unit
End-use category Value Value Volume Value Value Volume
----------------------------------------------------------
Foodstuffs 1.2 -2.3 3.6 11.9 -1.3 13.6
Consumer goods -3.1 -2.6 -1.9 2.3 -1.5 2.7
Raw materials and 1.2 -2.0 3.5 4.3 -2.9 7.7
semi-manufactures
Fuels -11.3 -5.0 -9.6 -4.9 9.2 -17.0
Capital goods 11.1 -3.0 15.9 11.7 -3.6 15.8
ALL COMMODITIES 1.5 -2.5 3.9 5.2 -2.2 7.1
----------------------------------------------------------
End
13. Statistics on trade involving outward processing in the Mainland
*********************************************************
According to statistics released today (Thursday) by
the Census and Statistics Department, in the third quarter
of 1997, 50% of Hong Kong's total exports to the mainland
of China (the Mainland) were for outward processing; the
figure was 80% for domestic exports, and 45% for re-
exports. On the other hand, 82% of Hong Kong's imports
from the Mainland were related to outward processing.
Over the same period, 89% 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 third quarter of 1996 were 52% for total
exports, 75% for domestic exports and 49% for re-exports;
whilst proportions for imports from the Mainland and for
re-exports of Mainland origin to other places were 79% and
86% respectively.
In January - September of 1997, 49% of Hong Kong's
total exports to the Mainland were for outward processing;
the figure was 75% for domestic exports and 45% for re-
exports. On the other hand, 79% of Hong Kong's imports
from the Mainland were related to outward processing.
Over the same period, 87% of Hong Kong's re-exports of
Mainland origin to other places were produced through
outward processing in the Mainland.
The corresponding proportions in January - September
of 1996 were 48% for total exports to the Mainland, 73%
for domestic exports to the Mainland, 45% for re-exports
to the Mainland, 80% for imports from the Mainland and 86%
for re-exports of Mainland origin to other places.
In value terms, $64.0 billion of Hong Kong's total
exports to the Mainland in the third quarter of 1997 were
for outward processing, representing an increase of 3%
over the third quarter of 1996. The value of domestic
exports to the Mainland for outward processing increased
by 18% to $13.6 billion whilst the value of re-exports to
the Mainland for outward processing showed marginal
decrease to $50.4 billion. Over the same period of
comparison, the value of imports from the Mainland related
to outward processing rose by 8% to $137.3 billion. On
the other hand, $168.0 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 3%.
In January - September of 1997, $177.5 billion of
Hong Kong's total exports to the Mainland were for outward
processing, representing an increase of 7% over January -
September of 1996. The value of domestic exports to the
Mainland for outward processing increased by 8% to 33.8
billion while that of re-exports to the Mainland for
outward processing was estimated to be 143.7 billion,
representing an increase of 7% over January - September of
1996. Over the same period of comparison, the value of
imports from the Mainland related to outward processing
increased by 5% to 352.2 billion. On the other hand,
428.8 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 4%.
Information on trade involving outward processing in
the Mainland is collected in sample surveys conducted by
the Census and Statistics Department. For the purpose of
the surveys, 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 trade 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.
A spokesman for the Census and Statistics Department
explained that all imports and exports of goods (not
including transshipments 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
December 1997 issue of the "Hong Kong External Trade".
This report will be on sale by the end of February 1998 at
the Government Publications Sales Centre, Queensway
Government Offices, Low Block, Ground Floor, 66 Queensway,
and at the Publications Unit of the Census and Statistics
Department, 19th Floor, Wanchai Tower, 12 Harbour Road,
Wan Chai at $111 a copy.
Enquiries on the survey results may be directed to
the Trade Surveys and Research Section of the Census and
Statistics Department on telephone 2565 7540.
End
14. Tender results for second block of mortgage purchase
****************************************************
The Hong Kong Mortgage Corporation (HKMC) announced
the results of its first tender held today (Thursday) for
the purchase of the second block of mortgages since its
establishment last year.
The first block of mortgages of HK$650 million was
purchased in November 1997 through the placement approach.
The tender of HK$1 billion was 1.45 times over-
subscribed. Approved Seller/Servicers submitted bids
totalling HK$2.45 billion, indicating that there is strong
interest amongst Approved Seller/Servicers in selling
mortgages to the HKMC. The average accepted yield of the
tender was 10.42% and the lowest accepted yield was
10.26%, both were above the announced minimum net required
yield of 10.25%.
The following Authorised Institutions were successful
in the tender: Dao Heng Bank, First Pacific Bank,
International Bank of Asia and Orix Asia Ltd.
"We are very pleased with the enthusiastic response
of the Approved Seller/Servicers and the accepted yields
of the tender. The HKMC will continue to purchase
mortgages from Approved Seller/Servicers on a consistent
basis," said Mr Peter Pang, Chief Executive Officer of the
HKMC.
End
