By ZHANG Xilong
Hong Kong’s foreign trade is facing a continuous decline. In June, both exports and imports dropped by 11.4 percent and 12.3 percent year-on-year, respectively, the sixth consecutive month of decline, resulting in an H1 trade deficit of 232 billion yuan (US$32 billion).
The decline in exports is attributed to the weak global economy and reduced shipments. The largest export declines were seen in Japan and Singapore. Machinery and communications equipment did the worst.
Hong Kong’s foreign trade is closely linked to China’s economic performance, and the Greater Bay Area is a big source of customers. There is hope for improvement in H2 as new electronic products are launched and the peak export season approaches.
Despite the potential for improvement, there are risks to consider, such as real estate and technology cycles in China. While the chances of further decline are low, a strong rebound is also unlikely.
