Economy expected to stay robust
The outlook for Hong Kong's economy is likely to stay healthy as it rides on the coattails of the mainland's robust growth, credit insurer Coface said.
However, recent measures by Beijing to cool the mainland economy could result in increased credit risk and pressure on corporate margins, dampening regional and international trade, the Hong Kong branch of the French company said.
Yves Zlotowski, Coface's country risk expert, said some sectors of the mainland market, such as the mobile phone and home appliances industries, were experiencing tighter margins due to price wars and higher oil prices.
But Richard Burton, Coface's regional managing director for greater China, remained upbeat. 'There are several positive indicators. For example, after the inception of the QDII [qualified domestic institutional investors] programme, Hong Kong's much-celebrated ties to the mainland will ensure it benefits from cash inflows, expanding the capacity of its markets,' he said.
Growth in real estate, a low jobless rate and a drop in late and default payments all point to a rosy outlook.
