OK in HK: Hong Kong Has Had Its Fair Share of Economic Problems over the Past Quarter, Including Sars, Spiralling Unemployment and a Big Budget Deficit. but Confidence Is Returning Now That the Region Is Free of the Virus. Norman Lyle Reports on Hong Kong's Recovery, Bolstered by Its New Free-Trade Agreement with Mainland China

By Lyle, Norman | Financial Management (UK), October 2003 | Go to article overview

OK in HK: Hong Kong Has Had Its Fair Share of Economic Problems over the Past Quarter, Including Sars, Spiralling Unemployment and a Big Budget Deficit. but Confidence Is Returning Now That the Region Is Free of the Virus. Norman Lyle Reports on Hong Kong's Recovery, Bolstered by Its New Free-Trade Agreement with Mainland China


Lyle, Norman, Financial Management (UK)


Hong Kong, the world's tenth-largest economy and the freest--has had a challenging yea,'. After an impressive start in the first quarter, with real GDP growing by 4.5 per cent, the region suffered the shock of Sars.

But nothing dampens the region's entrepreneurial spirit. The economy is rebounding much faster than expected, helped by the recovery of business travel since the World Health Organisation lifted its warning to foreign travellers on 23 May. Tourist arrivals have recovered by 70 per cent and Hong Kong's major carrier Cathay Pacific, expects to return to full capacity by the end of this month. The stock market hit a seven-month high in July and there was a rush of new listings, mainly from enterprises on mainland China. Despite the health crisis, trade is robust. Hong Kong remains the world's busiest container port and world's busiest airport for international cargo.

Since 1980 the Hang Seng Index has leapt up and down, but trade in Hong Kong has largely continued to grow (see chart, below). According to Edward Leung, chief economist on the Hong Kong Trade Development Council, export prospects are good. "The comeback is being supported by overseas buyers' pent-up demand; the weakened US dollar; the gradual recovery of the global economy; Asia's strong intra-regional trade; and the newly concluded closer economic partnership arrangement (CEPA) with the mainland China's first ever free-trade agreement, "he says.

From January next year, 90 per cent of Hong Kong's domestic exports to the mainland will be freed from tariffs under the first phase of the CEPA agreement. In addition, 18 service industries, including accountancy, legal services, advertising and telecommunications, will be granted market access. To qualify under CEPA, firms must be incorporated in Hong Kong and have been doing business there for the past three to five years, be liable for profits tax and employ at least half of their staff locally, Overseas firms can take advantage of CEPA by acquiring or forming partnerships with finns based in Hong Kong.

"CEPA is a most significant step in the process of integrating Hong Kong's business and trading capabilities into one of the world's most important manufacturing centres," says Christopher Hammerbeck, executive director of the British Chamber of Commerce in Hong Kong. "Further integration can only enhance the advantages that flow from trading and investing in this region."

The agreement will encourage closer economic interaction between Hong Kong and the Pearl River Delta (PRD), the biggest manufacturing region in the world. Hong Kong firms employ 10 million workers in 65,000 factories in the area and Hong Kong handles 80 per cent of its imports and exports. The PRD is home to the wealthiest consumer base in China and it has a GDP of more than $100 billion. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

OK in HK: Hong Kong Has Had Its Fair Share of Economic Problems over the Past Quarter, Including Sars, Spiralling Unemployment and a Big Budget Deficit. but Confidence Is Returning Now That the Region Is Free of the Virus. Norman Lyle Reports on Hong Kong's Recovery, Bolstered by Its New Free-Trade Agreement with Mainland China
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.