Aerial photo taken on January 24, 2023 shows the Kwai Tsing Container Terminal in Hong Kong. (PHOTO / AFP)

Hong Kong exporters have seen a marked improvement in confidence after the full resumption of normal travel between Hong Kong and the Chinese mainland, as evidenced by the latest export index released by the Hong Kong Trade Development Council rose 9.3 points during the first quarter from the previous quarter to 39.

“This represents a significant improvement in business sentiment among Hong Kong exporters in step with the resumption of Hong Kong-mainland cross-boundary land transportation in mid‑December and the reopening of the mainland’s border in early February,” said Cherry Yeung, senior economist at HKTDC.

In view of external uncertainties, the Hong Kong Trade Development Council has maintained its forecast for Hong Kong’s export growth this year at 5 percent, but said it believed “there is more chance of an upward revision than before”

“These developments are expected to further enhance Hong Kong’s trade outlook over the coming months as their positive impact gradually fully materializes,” she added.

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HKTDC created the index to gauge local traders’ outlook on near-term export performance. A total of 500 Hong Kong exporters from six major industry sectors, including clothing, electronics, jewelry, machinery, timepieces, and toys, were interviewed for the index survey in mid-November.

According to the survey, nearly 98 percent of respondents said the gradual easing of travel restrictions since January has benefitted their businesses by enabling more flexible and frequent business trips as well as facilitating cross-border commerce.

Also, 36.5 percent of interviewed exporters said they plan to increase their shipments through Hong Kong after the resumption of cross-border land freight transport so as to “meet end-users requests and a preference for storage, subpackaging, and processing to be done in Hong Kong.”

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Irina Fan, director of research at HKTDC, said on Tuesday that the return of tens of thousands of high-value-added business travelers to Hong Kong in recent months is expected to boost the city’s economic recovery.

Fan added that more buyers from around the world are expected to come to Hong Kong to attend trade shows during the peak purchasing season to replenish stock to meet pent-up market demand, which will also help Hong Kong’s export growth.      

In view of external uncertainties, HKTDC has maintained its forecast for Hong Kong’s export growth this year at 5 percent, but said it believed “there is more chance of an upward revision than before”.