In this undated file photo, Hong Kong Financial Secretary Paul Chan Mo-po gives an interview. (ZOU HONG / CHINA DAILY)
Hong Kong’s exports remain under pressure as multiple countries increase their respective interest rates, Financial Secretary Paul Chan Mo-po posted in his blog on Sunday.
The upcoming figure for Hong Kong’s export in August is expected to widen its decline following a drop of three consecutive months, he wrote in his official blog.
As Hong Kong’s travel restrictions eased on Monday — arrivals to the city no longer are required to be quarantined, and they now face only three days of “medical surveillance” — Chan said Hong Kong people should seize the opportunities presented by the economic recovery
“The tightened monetary policies around the world will further weaken the momentum of global growth,” he said.
The US Federal Reserve last week raised its benchmark interest rate by 75 basis points to a range of 3 percent to 3.25 percent, the third consecutive three-quarter-point increase that the Fed has imposed to combat the country’s soaring inflation.
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Meanwhile, the Bank of England raised interest rates by 50 basis points, while the Riksbank, Sweden’s central bank, hiked rates by 1 percentage point, exceeding market expectations.
The volume of Hong Kong’s total exports of goods in July plunged 16.2 percent year-on-year, compared with a 12.5 percent decline year-on-year in June. Its total exports of goods for the first seven months of 2022 decreased by 8.8 percent, compared with the same period last year.
Chan acknowledged the growing burdens of borrowing costs for small and medium-sized enterprises, as the city’s major banks, including HSBC, Standard Chartered, Bank of China (Hong Kong) and Hang Seng Bank, all lifted their prime rates by 12.5 basis points last week.
Chan also warned of downward pressure on asset prices and financial market fluctuations, especially in foreign-currency exchanges and securities.
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As Hong Kong’s travel restrictions eased on Monday — arrivals to the city no longer are required to be quarantined, and they now face only three days of “medical surveillance” — Chan said Hong Kong people should seize the opportunities presented by the economic recovery.
tianyuanzhang@chinadailyhk.com