CHINA'S role as Hong Kong's largest re-export destination continued to expand in September, but there are signs the mainland's austerity programme is beginning to take its toll on the territory.
Statistics released yesterday by the Census and Statistics Department showed re-exports to China jumped 23.6 per cent to $22.5 billion in September, surpassing those to the United States which rose 18.4 per cent to $18.3 billion.
However, the figures for China were sharply below the overall trend for the year, which saw a 34.6 per cent rise to $200.7 billion over the first nine months.
Economists said this was the first real indication that China's austerity programme, aimed at reducing inflation, was affecting Hong Kong.
The declining pattern in re-exports was also evident with the US as the rise was 22.3 per cent from January to September.
Of the 10 major re-export destinations, the only countries to buck the trend were Japan, Taiwan, South Korea and Canada.
Re-exports to Taiwan fell 4.1 per cent in September and 15.9 per cent over the nine months. Economists reckoned the decline was due to shipments being sent direct to China, rather than through Hong Kong.