Tag Archives: China

     In the first quarter of 2023, 17.3% of Hong Kong’s total exports to the mainland of China (the Mainland) were for outward processing in the Mainland. On the other hand, 29.7% of Hong Kong’s imports from the Mainland were related to outward processing in the Mainland, according to statistics released today (June 9) by the Census and Statistics Department (C&SD). Over the same period, 59.6% of Hong Kong’s re-exports of Mainland origin to other places were produced through outward processing in the Mainland.
      
     In the first quarter of 2022, the corresponding proportions were 19.2% for total exports to the Mainland, 31.1% for imports from the Mainland and 59.8% for re-exports of Mainland origin to other places.
      
     In value terms, $86.5 billion of Hong Kong’s total exports to the Mainland in the first quarter of 2023 were for outward processing in the Mainland, representing a decrease of 31.1% compared with the first quarter of 2022. On the other hand, the value of imports from the Mainland related to outward processing in the Mainland decreased by 14.1% compared with the first quarter of 2022 to $132.6 billion. Meanwhile, $160.1 billion of Hong Kong’s re-exports of Mainland origin to other places were produced through outward processing in the Mainland, representing a decrease of 17.4% compared with the first quarter of 2022.
      
     The statistics for the first quarter of 2023 are given in the attached tables.
      
     Information on trade involving outward processing in the Mainland is collected in a sample survey conducted by the C&SD. 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 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. Moreover, 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. The findings of the survey 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.
      
     Users can download the times series of outward processing trade statistics in Tables 410-52001 to 410-52003 (www.censtatd.gov.hk/en/scode230.html) at the website of the C&SD.
      
     Enquiries on the survey results may be directed to the Electronic Trading Services and Cargo Statistics Section of the C&SD (Tel: 2582 2126 or email: ops@censtatd.gov.hk). read more

     The Census and Statistics Department (C&SD) released today (June 9) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for May 2023.
 
     The current diffusion index (DI) on business receipts amongst SMEs decreased from 48.0 in April 2023 in the contractionary zone to 47.2 in May 2023, whereas the one-month’s ahead (i.e. June 2023) outlook DI on business receipts was 49.2. Analysed by sector, the current DIs on business receipts for many surveyed sectors dropped by varying degrees in May 2023 as compared with previous month, particularly for the business services (from 51.9 to 46.9) and retail trade (from 49.4 to 45.8).
     
     The current DI on new orders for the import and export trades remained at 48.0 in May 2023, whereas the outlook DI on new orders in one month’s time (i.e. June 2023) was 49.4.
 
Commentary
 
     A Government spokesman said that overall business sentiment among SMEs softened slightly in May. Expectation on the business situation in one month’s time also retreated somewhat. Nonetheless, the overall employment situation remained broadly stable.
 
     Looking forward, the spokesman said that slower growth in the advanced economies and tight financial conditions will continue to affect business sentiment, but the local economic recovery and the various measures introduced by the Government in boosting the recovery momentum should provide support. The Government will monitor the situation closely.
 
Further information
 
     The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by SMEs. SMEs covered in this survey refer to establishments with fewer than 50 persons engaged. Respondents were asked to exclude seasonal fluctuations in reporting their views. Based on the views collected from the survey, a set of diffusion indices (including current and outlook diffusion indices) is compiled. A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise. As for statistics on the business prospects of prominent establishments in Hong Kong, users may refer to the publication entitled “Report on Quarterly Business Tendency Survey” released by the C&SD.
 
     The results of the survey should be interpreted with care. The survey solicits feedback from a panel sample of about 600 SMEs each month and the survey findings are thus subject to sample size constraint. Views collected from the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in. Besides, in this type of opinion survey on expected business situation, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents’ perception of the business situation accords with the underlying trends. For this survey, main bulk of the data were collected around the last week of the reference month.
 
     More detailed statistics are given in the “Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises”. Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080015&scode=300).
 
      Users who have enquiries about the survey results may contact Industrial Production Statistics Section of the C&SD (Tel: 3903 7246; email: sme-survey@censtatd.gov.hk). read more

     Business receipts in value terms of many major service industries showed increases of different magnitudes in the first quarter of 2023 when compared with the first quarter of 2022, according to the provisional figures of business r… read more

     The Immigration Department (ImmD) mounted a series of territory-wide anti-illegal worker operations codenamed “Contribute” and “Twilight”, and joint operations with the Hong Kong Police Force codenamed “Champion” and “Windsand”, for four consecutive days from June 5 to yesterday (June 8). A total of 16 suspected illegal workers and six suspected employers were arrested.
 
     During the anti-illegal worker operations, ImmD Task Force officers raided 26 target locations including manicure shops, massage parlours, premises under renovation, residential buildings, restaurants, a retail shop and a wet market. Twelve suspected illegal workers and five suspected employers were arrested. The arrested suspected illegal workers comprised four men and eight women, aged 25 to 60. Among them, one man and three women were holders of recognisance forms, which prohibit them from taking any employment. In addition, one woman was suspected of using and being in possession of a forged Hong Kong identity card. Three men and two women, aged 35 to 72, were suspected of employing the illegal workers and were also arrested.
 
     During operation “Champion”, enforcement officers raided 20 target locations in Central district, including restaurants, retail shops and salons. Three suspected illegal workers and one suspected employer were arrested. The arrested suspected illegal workers comprised one man and two women, aged 23 to 66. One man, aged 34, was suspected of employing the illegal workers and was arrested.
 
     Furthermore, during operation “Windsand”, one female Mainland visitor, aged 28, was arrested for breaching her condition of stay by being involved in suspected parallel trading activities at San Wan Road in Sheung Shui district. The goods are mainly skincare products.
 
     An ImmD spokesman said, “Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties.”
 
     The spokesman warned, “As stipulated in section 38AA of the Immigration Ordinance, an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land is prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment. Under the prevailing laws, it is an offence to use or possess a forged Hong Kong identity card or a Hong Kong identity card related to another person. Offenders are liable to prosecution and upon conviction face a maximum fine of $100,000 and up to 10 years’ imprisonment.”
 
     The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years’ imprisonment to a fine of $500,000 and 10 years’ imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.
 
     According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.
 
     Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threats and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments immediately.

    

     The effective exchange rate index for the Hong Kong dollar on Friday, June 9, 2023 is 103.5 (down 0.3 against yesterday’s index). read more