ECONOMY | Staff Reporter, Hong Kong

Half of exporters remain bullish despite trade tensions

They believe US-China trade tensions will have little to no impact on export activity.

Half of Hong Kong exporters (55.4%) have expressed confidence that brewing trade tensions between the two largest economies will not have any impact on their export activities, according to a survey by the Hong Kong Trade Development Council (HKTDC). 

Also read: Exports up 8.1% to $330.2b in April

The remaining third (35.8%) expected strained economic relations to have a slight negative impact, indicating a growing bullishness about the economy.

This was affirmed when the HKTDC Export Index hit a 29-quarter high, indicating a positive sentiment amongst local exporters for the first time in 12 months after the reading rose from 49.4 in Q1 to 54.1 in Q2.

Also read: GDP growth hits seven year high as economy surges 4.7% in Q1

"Overall, Hong Kong exporters have shown a strong reversal in sentiment," HKTDC director of research Nicholas Kwan said in a statement. "Despite the mixed performances across sectors, exporters were generally positive about the outlook for major export markets."

The European Union also returned into expansionary territory for the first time in six years, outperforming other major markets with the highest reading of 54 in Q2. Close behind was the Mainland, with a reading of 53.8.

Exporters also showed strong confidence in the Japan (51.3) and US (51.2) markets, with both indices at their highest in recent years.

The HKTDC Export Index monitors the current export performance of Hong Kong traders and gauges their near-term prospects. Readings above and below 50 indicate positive and negative sentiment respectively.

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