(Xinhua)
Updated: 2007-09-14 09:46

HONG KONG - Hong Kong Trade Development Council (TDC) said here Thursday the cosmopolis' exports are expected to rise 9 percent this year, higher than earlier forecast of 6 percent.

The TDC's new correction in exports forecast came after a 10.1 percent rise in exports during the first seven months in 2007, driven largely by 14.4 percent growth in demands from Chinese mainland.

The Chinese mainland's stronger-than-expected economic performance, its need of machinery to produce goods for exports and its industrial upgrading programs are the key factors behind the rise in Hong Kong's exports, the council's chief economist Edward Leung said.

Leung urges Hong Kong companies to focus more on ASEAN (Association of Southeast Asian Nations) markets, since the China-ASEAN Free Trade Area is likely to mean closer trade ties between ASEAN and the Chinese mainland.

Although Hong Kong is not the agreement's signatory, Leung said, its exports to ASEAN have already been beneficial.

Hong Kong's exports to ASEAN countries rose 13.1 percent in the first seven months this year, accounting for 6 percent of its total exports, according to TDC figures.

Leung forecast a slowdown in exports in the second half of this year as manufacturers on the Chinese mainland expect further changes in the export processing trade arrangement and place more orders for machinery and raw materials to be shipped through Hong Kong in the first few months.

Leung said the new rules will likely to have an adverse impact on Chinese mainland's shipments via Hong Kong as the Renminbi, China's currency, may further appreciate and protectionism overseas might also rise.