HK investments in Chinese mainland up by 48 percent in 2008

Trade volume between Chinese mainland and Hong Kong reached 203.67 billion USD in 2008, up 3.3 percent year-on-year, according to information released by the Department of Taiwan, Hong Kong and Macao Affairs of China's Ministry of Commerce on February 2. Exports from Chinese mainland to Hong Kong amounted to 190.74 billion USD, up by 3.4 percent year-on-year. Exports from Hong Kong to Chinese mainland amounted to 12.92 billion USD, up by 0.9 percent year-on-year.

These growth rates are significantly lower than those in 2007, standing at about 18.7 percent. Hong Kong is Chinese mainland's fifth largest trading partner and its third largest export market.

In 2008, Chinese mainland authorized 12,857 HK funded projects, a 20.7 percent drop from the previous year, whereas 2007 had showed a 4.6 percent increase from 2006.

However, the mainland's actual use of Hong Kong capital amounted to 41 billion USD, a significant 48 percent rise year-on-year, higher than the 30 percent increase in 2007.

FDI from Hong Kong amounted to 41 percent of the actual used foreign funds in Chinese mainland, slightly higher than the 40.4 percent in 2007, maintaining Hong Kong's position as Chinese mainland's largest source of overseas investment.

By the end of December 2008, Chinese mainland had authorized 298,620 HK-funded projects, amounting to a total of 349.57 billion USD of Hong Kong direct investment.

Source: People's Daily Online