HK Exports Fall, Stocks Follow

123jump.com Staff
30 Jan, 2009
New York City

Hong Kong exports in December fell more than 11% and for the year declined 5%. Exports declined 15% to the U.S. and dropped 12% to china. Chine imported 51% of its crude oil needs in 2008. Stocks in Hong Kong trading rose on a surge in shipping companies.

[R]10:00AM New York, 6:00PM Hong Kong - Hong Kong exports fall 11.4% in December to HK$205.8 billion and declined 5.1% in 2008.[/R]

Hong Kong stocks advanced on expectations that Beijing will cut interest rates and unveil a stimulus to arrest the falling domestic economic growth.

In Hong Kong trading Hang Seng Index rose 0.9% or 123.78 to 13,278.21, falling 7.7% in January, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, gained 1.9% or 129.28 to 7,131.98.

Daily turnover on main-board increased to HK$44.1 billion from HK$39.2 billion yesterday.

Hong Kong Exports December Falls 11.4%

Hong Kong Special Administrative Region said yesterday exports declined 11.4% in December to HK$205.8 billion and declined 5.1% in 2008. Imports in the period declined 16.2% to HK$217.6 billion, and fell 5.5% for 2008.

Trade deficit in 2008 was HK$201.1 billion or 6.6% of total imports in 2008.

Exports to Asia fell 12.2% in December, including a decline of 12.1% for the Chinese mainland, while shipments to Korea plunged 32.4%, India dropped 22.2% and Singapore decreased 9.7%.

Exports to the U.S. declined 14.8% and exports to Netherlands and U.K. fell 13.8% and 10% respectively.

Telecommunications and sound recording industry products shed 21.8%, electrical machinery, apparatus and appliances and electrical parts declined by 10.2%. Articles of apparel and clothing accessories saw a decline of 11.6%.

A spokesman for the HKSAR government said the outlook for Hong Kong''s external trade is uncertain.

China Crude Oil Imports Rise 9.6% to 179 million tons

Xinhua News Agency reported that China’s crude oil imports gained 9.6% to 179 million tons in 2008 from a year ago.

Deputy Director of the association’s information and market department Zhu Fang said China relied on imports for 51% of its oil demand.

China’s consumption of oil products gained 11.9% to 215 million tons a year ago. Demand is expected to slow this year as global economic growth declines.

Gainers & Losers

Hong Kong stocks climbed 0.9%. Analysts forecast that the People''s Bank of China will slash its key rate in order to promote lending.

HSBC fell 2.9% as investors worried about dividend cuts and possible dilution in stock price if the bank may be forced to raise more capital.

However other financial stocks gained on hopes of a rate cut. Bank of Communications edged up 4.7% and Ping An Insurance advanced 4.7%.

Shipping stocks gained as the Baltic Dry Index, which is a measure of freight charges for raw materials, rose 2.2%. China Cosco increased 5.8%, China Shipping Development rose 4.6% and China Shipping Container Lines soared 7.7%.

Airlines gained as oil prices hovered above $42 per barrel. Air China jumped 10% and China Eastern Airlines increased 12.2%.