Tag Archives: China

The following is issued on behalf of the Hong Kong Monetary Authority:
                                                                                             
     The Hong Kong Monetary Authority (HKMA) announced today (November 30) that the total assets of the Exchange Fund amounted to HK$3,955.0 billion as at October 31, 2018, HK$77.6 billion lower than that at the end of September 2018. Foreign currency assets decreased by HK$44.5 billion and Hong Kong dollar assets decreased by HK$33.1 billion.
 
     The decline in foreign currency assets was mainly due to mark-to-market reduction in value of foreign currency portfolios. The decline in Hong Kong dollar assets was mainly due to the fall in market value of Hong Kong equities and a reduction in overnight liquidity provided under the Discount Window.
 
     The Currency Board Account shows that the Monetary Base at the end of October 2018 was HK$1,615.1 billion, decreased by HK$4.6 billion, or 0.3 per cent, from the end of September 2018. The decline was mainly due to the decrease in the outstanding amount of Certificates of Indebtedness.
 
     The amount of Backing Assets decreased by HK$0.8 billion, or 0.05 per cent, to HK$1,768.7 billion. The decrease was mainly attributable to the redemption of Certificates of Indebtedness, which was partly offset by revaluation gains and interest from investments.  The backing ratio increased from 109.25 per cent at the end of September 2018 to 109.51 per cent at the end of October 2018.

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     At present, four press releases relating to the Exchange Fund’s data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund’s Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA’s policy of maintaining a high level of transparency. For the month of November 2018, the scheduled dates for issuing the press releases are as follows:
 

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) released today (November 30) the analytical data on the Hong Kong Special Administrative Region’s foreign currency reserves and foreign currency liquidity as at the end of October 2018 (Annex). These data are published monthly in the Template on International Reserves and Foreign Currency Liquidity in accordance with the International Monetary Fund’s Special Data Dissemination Standard.
 
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At present, four press releases relating to the Exchange Fund’s data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund’s Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund’s Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA’s policy of maintaining a high level of transparency. For the month of November 2018, the scheduled dates for issuing the press releases are as follows:

The following is issued on behalf of the Hong Kong Monetary Authority:      The Hong Kong Monetary Authority (HKMA) announced the results of the residential mortgage survey for October 2018.        The number of … read more

     According to the results of the 2017 Annual Survey of Economic Activities – Building, Construction and Real Estate Sectors released today (November 30) by the Census and Statistics Department (C&SD), the construction sector’s total receipts (comprising gross value of construction works performed and other business receipts) amounted to $418.5 billion in 2017, representing an increase of 3.1% over 2016; on a per establishment basis, total receipts was $16.8 million in 2017, increased slightly by 0.4% compared with 2016.

     Operating expenses and compensation of employees of the construction sector altogether amounted to $377.6 billion in 2017, representing an increase of 2.8% over 2016; on a per establishment basis, they were $15.2 million in 2017, edged up by 0.1% compared with 2016.

     Gross surplus of the construction sector, which is equal to total receipts less operating expenses and compensation of employees, increased by 6.1% over 2016 to $40.9 billion in 2017; on a per establishment basis, gross surplus increased by 3.3% compared with 2016 to $1.6 million in 2017. Gross surplus accounted for 9.8% of total receipts in 2017, up by 0.3 of a percentage point over 2016.

     Value added of the construction sector, which is a measure of its contribution to Hong Kong’s Gross Domestic Product, increased by 5.2% over 2016 to $132.8 billion in 2017; on a per establishment basis, the value added was $5.3 million in 2017, representing an increase of 2.4% over 2016.

     In 2017, there were some 24 800 establishments in the construction sector, which directly engaged about 185 100 persons, or an average of 7.5 persons per establishment.

     The survey did not cover labour-only sub-contractors that mainly supplied labour to work on a job-to-job basis, owing to practical consideration in data collection. The employment figures above mainly covered direct employees of the construction establishments and did not reflect the labour input through the sub-contracting activities of labour-only sub-contractors.

     Apart from the construction sector, the survey also enumerated establishments engaged in real estate activities; and architectural, surveying and engineering services.

     Total receipts (comprising gross margin of real estate development projects, service and rental income and other business receipts) of establishments engaged in the real estate activities (including real estate development, real estate leasing, real estate brokerage and agency and real estate maintenance management) amounted to $202.0 billion in 2017, representing an increase of 4.0% over 2016. Operating expenses and compensation of employees altogether amounted to $82.0 billion in 2017, representing an increase of 8.1% over 2016. Gross surplus increased by 0.8% compared with 2016 to $111.6 billion in 2017. Gross surplus accounted for 55.3% of total receipts in 2017, down by 1.8 percentage points compared with 2016. Value added increased by 3.6% compared with 2016 to $145.3 billion in 2017.

     In 2017, the real estate activities comprised 9 100 establishments and engaged about 112 300 persons, or an average of 12.4 persons per establishment.

     The total number of private real estate projects ever operated in 2017 was 299. As at end-2017, 236 projects, which were expected to provide a total 7.4 million square metres of gross floor area of buildings when completed, were still under construction. Among them, 19% were on Hong Kong Island, 30% in Kowloon and 51% in the New Territories and outlying islands.

     The survey excluded establishments which developed real estate projects for their own use as well as those which owned land but had not developed it during the reference year. Real estate leasing and other related activities undertaken by individuals or firms which engaged less than two persons (except for subsidiaries of real estate enterprises) were also not covered in the survey.

     Total receipts (comprising service income and other business receipts) of establishments engaged in the architectural, surveying and engineering services amounted to $22.0 billion in 2017, representing an increase of 1.4% over 2016. Operating expenses and compensation of employees altogether amounted to $19.9 billion in 2017, representing an increase of 0.5% over 2016. Gross surplus increased by 10.6% compared with 2016 to $2.1 billion in 2017. Gross surplus accounted for 9.4% of total receipts in 2017, up by 0.8 of a percentage point compared with 2016. Value added increased by 3.7% compared with 2016 to $15.7 billion in 2017.

     In 2017, the architectural, surveying and engineering services comprised some 2 000 establishments and engaged about 25 700 persons, or an average of 12.8 persons per establishment.

     Selected statistics for the building, construction and real estate sectors, with breakdowns by industry grouping, are shown in the attached table.

     More detailed survey results on the building, construction and real estate sectors will be given in the report “Key Statistics on Business Performance and Operating Characteristics of the Building, Construction and Real Estate Sectors in 2017”. Users can download this report free of charge at the website of C&SD (www.censtatd.gov.hk/hkstat/sub/sp330.jsp?productCode=B1080011) as from end-December 2018.

     For enquiries about the key statistics on business performance and operating characteristics of the building, construction and real estate sectors, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD at telephone: 3903 6964 or email: building@censtatd.gov.hk. read more

     The Census and Statistics Department (C&SD) released the latest figures on retail sales today (November 30).

     The value of total retail sales in October 2018, provisionally estimated at $39.7 billion, increased by 5.9% over the same month in 2017. The revised estimate of the value of total retail sales in September 2018 increased by 2.4% over a year earlier. For the first ten months of 2018 taken together, it was provisionally estimated that the value of total retail sales increased by 10.6% over the same period in 2017.

     After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in October 2018 increased by 5.2% over a year earlier. The revised estimate of the volume of total retail sales in September 2018 increased by 1.4% over a year earlier. For the first ten months of 2018 taken together, the provisional estimate of the total retail sales increased by 9.1% in volume over the same period in 2017.

     Analysed by broad type of retail outlet in descending order of the provisional estimate of the value of sales and comparing October 2018 with October 2017, the value of sales of jewellery, watches and clocks, and valuable gifts increased by 3.3%. This was followed by sales of electrical goods and other consumer durable goods, not elsewhere classified (+16.1% in value); commodities in department stores (+3.5%); wearing apparel (+2.3%); medicines and cosmetics (+14.9%); other consumer goods, not elsewhere classified (+12.7%); motor vehicles and parts (+13.6%); fuels (+10.3%); footwear, allied products and other clothing accessories (+9.3%); books, newspapers, stationery and gifts (+5.8%); furniture and fixtures (+0.8%); Chinese drugs and herbs (+0.6%); and optical shops (+3.2%).

     On the other hand, the value of sales of commodities in supermarkets decreased by 0.9% in October 2018 compared with a year earlier. This was followed by sales of food, alcoholic drinks and tobacco (-2.0% in value).

     Based on the seasonally adjusted series, the provisional estimate of the value of total retail sales decreased by 2.2% in the three months ending October 2018 compared with the preceding three-month period, while the provisional estimate of the volume of total retail sales decreased by 1.8%.

     These retail sales statistics measure the sales receipts in respect of goods sold by local retail establishments and are primarily intended for gauging the short-term business performance of the local retail sector. They cover consumer spending on goods but not on services (such as those on housing, catering, medical care and health services, transport and communication, financial services, education and entertainment) which account for over 50% of the overall consumer spending. Moreover, they include spending on goods in Hong Kong by visitors but exclude spending outside Hong Kong by Hong Kong residents.  Hence they should not be regarded as indicators for measuring overall consumer spending.

     Users interested in the trend of overall consumer spending should refer to the data series of private consumption expenditure (PCE), which is a major component of the Gross Domestic Product published at quarterly intervals. Compiled from a wide range of data sources, PCE covers consumer spending on both goods (including goods purchased from all channels) and services by Hong Kong residents whether locally or abroad.  Please refer to the C&SD publication “Gross Domestic Product (Quarterly)” for more details.

Commentary

     A government spokesman indicated that growth in retail sales picked up somewhat in October after a deceleration in the preceding month, supported by the faster increase in visitor arrivals and continued income growth.

     The spokesman commented further that, looking forward, strong inbound tourism and favourable job and income conditions should continue to support the retail sector in the near term. Yet, consumer sentiment could increasingly be affected by the external uncertainties and weaker asset markets. The Government will closely monitor the situation.

Further information

     Table 1 presents the revised figures on value index and value of retail sales for all retail outlets and by broad type of retail outlet for September 2018 as well as the provisional figures for October 2018. The provisional figures on the value of retail sales for all retail outlets and by broad type of retail outlet as well as the corresponding year-on-year changes for the first ten months of 2018 taken together are also shown.

     Table 2 presents the revised figures on volume index of retail sales for all retail outlets and by broad type of retail outlet for September 2018 as well as the provisional figures for October 2018. The provisional figures on year-on-year changes for the first ten months of 2018 taken together are also shown.

     Table 3 shows the movements of the value and volume of total retail sales in terms of the year-on-year rate of change for a month compared with the same month in the preceding year based on the original series, and in terms of the rate of change for a three-month period compared with the preceding three-month period based on the seasonally adjusted series.

     The classification of retail establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.

     More detailed statistics are given in the “Report on Monthly Survey of Retail Sales’. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp320.jsp?productCode=B1080003). Alternatively, the historical series of retail sales statistics can be downloaded in the form of a statistical table at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp320.jsp?productCode=D5600089).

     Users who have enquiries about the survey results may contact the Distribution Services Statistics Section of C&SD (Tel: 3903 7400; email: mrs@censtatd.gov.hk). read more