Factories go to mainland

THE index of industrial production dropped by four per cent in the second quarter, compared with the same period last year, providing further signs of Hong Kong's shrinking industrial sector as more factories move to China.

The largest decline was posted by the textiles sector, which tumbled 13.8 per cent, while production basis metal and fabricated metal fell 12.4 per cent.

But the paper products and printing industry group bucked the trend with a 14.2 per cent jump in production.