CHINA trade will continue to grow despite Beijing's policy of curbing economic overheating, predicts a major Hongkong trading house.
''The worst thing in China has always been inflation and unemployment. More stability [resulting from control of inflation] will lead to better prospects,'' said Jebsen and Co managing director Hans Jebsen.
The 97-year-old Hongkong-based company, which trades a variety of goods including Pentax cameras, Volvo and Porsche cars, chemicals and medical equipment, is now looking at the mainland for expansion.
Mr Jebsen said the move was inspired by concern over growth in the Hongkong market which was saturated in sectors such as photographic goods.
He said sales of luxury products in the territory would depend heavily on tourism, which traders could not control.
Given the disappointing retail performance last Christmas, Mr Jebsen said: ''I do not believe that one can expect a very high growth rate of consumer products in Hongkong. So growth has to come from China.'' Last year, the group's China business grew 36 per cent to $2.6 billion, making up half of its total turnover, while its Hongkong trade saw only single-digit improvement.