HK trade hub position hinges on re-exports

According to the Census and Statistics Department (C&SD) of the Hong Kong Special Administrative Region (HKSAR), re-exports is expected to be a major driving force of trading in the city's economy.

International trade is a key driver for Hong Kong's economy, but the city's role as a global trading hub will hinge on re-exports as the volume of local goods exports will drop further.

Figures from C&SD show that Hong Kong's re-exports will far outweigh the city's local goods exports, with a sharp year-on-year increase recorded in the former and an even sharper decline in the latter.

Hong Kong's re-exports increased year-on-year by 12.8% in June, while exports fell nearly 20%, making the total export volume rise by 10.9%.

"The size of Hong Kong's local goods exports is becoming smaller and smaller. As many (trade-related) jobs shift to the mainland, Hong Kong will become a major re-export center," said Castor Pang, a strategist from Hong Kong-based Sun Hung Kai Financial Group.

"Hong Kong's trade industry is experiencing a transformation. Previously it was just import and export, but now we call it trading and logistics," said Jeffrey Wong, Director of Specialty Planning for Walmart (China) Investment Co Ltd.