Emerging markets to spur HK 2013 exports

The overall market condition for Hong Kong exports in 2013 is expected to be better than it is this year, thanks to robust demand from emerging markets, according to a survey on buyers and exhibitors participating in trade fairs in the city recently.

Around half of the 1,500 buyers and exhibitors at the Hong Kong Electronics Fair (Autumn Edition) and the Hong Kong International Lighting Fair (Autumn Edition) that were interviewed said they expect the overall market condition in 2013 to be better, according to a survey commissioned by HKTDC and conducted by the Nielson Company.

Shipping containers are stacked at Kwai Chung shipping terminals. Hong Kong exports in 2013 is expected to see a better condition than this year, according to a survey among industry players. [Photo/Agencies]

Around 35 percent of the total respondents expect the market condition in 2013 to be maintained unchanged while 15 percent project it to turn worse.

"The interviewed buyers and exhibitors are cautiously optimistic about market prospects, mainly because emerging markets still have good growth potential," said Benjamin Chau, HKTDC deputy executive director, adding that the growing demand for eco-friendly and high-tech products also brings new business opportunities for Hong Kong enterprises.

The survey shows that both exhibitors and buyers were generally optimistic about sales prospects in emerging markets. The majority expects increases in sales to Asia (68%), Latin America (63%) and the Middle East (57%).

Meanwhile, over 40 percent of the respondents said they were interested in developing the Asian markets, while nearly 30 percent said they intended to expand into Central and Eastern Europe, as well as Russia.

Although HKTDC have revised downwards its Hong Kong's export growth forecast for this year to -1 percent, from 1 percent, the city's exports may have bottomed out, judging by its performance in September, said Chau.

"The robust export value growth in September, as well as a stabilized economic growth on the mainland in the fourth quarter, have given us the confidence that Hong Kong's export for this year won't be too bad," he said.

According to the Census & Statistics Department, Hong Kong's total goods export value rose 15.2 percent year-on-year for September, compared to a 0.6 percent increase in August and a 3.5 percent decrease in July.

Echoing the survey's findings, HSBC also released a report on Monday, saying that Hong Kong's total export growth is forecast to double from 4.8 percent in 2012 to 11.4 percent annually between 2013 and 2015.

But the report also said that the confidence amongst Hong Kong traders has dipped into negative territory due to a pessimistic view of the global economy.

Terence Chiu, HSBC's Head of Trade, Hong Kong and Macao, Global Trade and Receivables Finance, said that despite the current slowdown in the Chinese economy, and decreased near-term confidence, Hong Kong's trade future is underpinned by sound fundamentals due to its links to the mainland.

"As various emerging markets in Asia gain momentum and develop their economies, Hong Kong will play a vital role in facilitating the growth in trade throughout this exciting region," Chiu added.

sophiehe@chinadailyhk.com