********************************************************
In the fourth quarter of 2005, 39% of Hong Kong's total exports to the mainland of China (the Mainland) were for outward processing. The proportion was 56% for domestic exports and 38% for re-exports. On the other hand, 66% of Hong Kong's imports from the Mainland were related to outward processing, according to statistics released today (March 21) by the Census and Statistics Department. Over the same period, 80% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
The corresponding proportions for exports to the Mainland in the fourth quarter of 2004 were 45% for total exports, 64% for domestic exports and 44% for re-exports; whilst proportions for imports from the Mainland and for re-exports of Mainland origin to other places were 76% and 79% respectively.
Taking the year 2005 as a whole, 38% of Hong Kong's total exports to the Mainland were for outward processing; the figure was 56% for domestic exports and 38% for re-exports. On the other hand, 66% of Hong Kong's imports from the Mainland were related to outward processing. Over the same period, 79% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
The corresponding proportions in 2004 were 43% for total exports to the Mainland, 66% for domestic exports to the Mainland, 43% for re-exports to the Mainland, 72% for imports from the Mainland and 79% for re-exports of Mainland origin to other places.
In value terms, $106.4 billion of Hong Kong's total exports to the Mainland in the fourth quarter of 2005 were for outward processing, representing a decrease of 1% over the fourth quarter of 2004. The value of domestic exports to the Mainland for outward processing increased by 4% to $7.1 billion whilst the value of re-exports to the Mainland for outward processing fell by 2% to $99.2 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing decreased by 2% to $185.9 billion. On the other hand, $197.8 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, representing an increase of 6%.
For the whole year of 2005, $388.5 billion of Hong Kong's total exports to the Mainland were for outward processing, representing an increase of less than 1% over 2004. The value of domestic exports to the Mainland for outward processing rose by 1% to $25.1 billion whereas that of re-exports to the Mainland for outward processing increased by less than 1% to $363.4 billion. Over the same period of comparison, the value of imports from the Mainland related to outward processing went up by 5% to $692.0 billion. On the other hand, $756.6 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing in the Mainland, which represents an increase of 10%.
The estimates for the fourth quarter and the whole year of 2005 and the corresponding changes over the same period in 2004 are summarized in the attached table.
Information on trade involving outward processing in the Mainland is collected in a sample survey conducted by the Census and Statistics Department. For the purpose of the survey, exports to the Mainland for outward processing refer to raw materials or semi-manufactures exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
Imports from the Mainland related to outward processing refer to processed goods imported from the Mainland, of which all or part of the raw materials or semi-manufactures have been under contractual arrangement exported from or through Hong Kong to the Mainland for processing.
Re-exports of Mainland origin to other places involving outward processing in the Mainland refer to processed goods re-exported through Hong Kong, of which all or part of the raw materials or semi-manufactures have been exported from or through Hong Kong to the Mainland for processing with a contractual arrangement for subsequent re-importation of the processed goods into Hong Kong.
In interpreting the statistics, it should be noted that the value and proportion of imports from the Mainland and re-exports of Mainland origin to other places involving outward processing in the Mainland refer to those of the entire goods instead of just the value added contributed by outward processing in the Mainland.
A sample of import/export declarations in respect of Hong Kong's trade with the Mainland and Hong Kong's re-exports originated in the Mainland to other places is selected for enumeration to obtain the required information from the establishments concerned. All imports and exports of goods (not including transhipments and goods-in-transit) are recorded as external trade, irrespective of whether the goods are associated with outward processing or not. The findings of the survey, however, facilitate a more informed analysis of the nature of Hong Kong's trade with the Mainland. In this respect, the survey results are a useful supplement to the regular trade statistics.
The above survey results will be included in the March 2006 issue of the "Hong Kong External Merchandise Trade". The publication can be purchased in person by the end of May 2006 at HK$71 per copy from : Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong (Tel.: 2582 3025).
Internet users may purchase the publication online at the ＾Statistical Bookstore, Hong Kong￣ (http://www.statisticalbookstore.gov.hk) through mail order by returning a completed order form which can be downloaded from C&SD's website (http://www.censtatd.gov.hk/eng/prod_serv/forms_index.html)
Enquiries on the survey results may be directed to the Trade Surveys and Research Section of the Census and Statistics Department on telephone 2582 5503.
Ends/Tuesday, March 21, 2006
Issued at HKT 16:15
NNNN
