Financial Capsules

SkyPier Service Expands
The catchment area of Hong Kong International Airport (HKIA) has been extended with the launch of SkyPier ferry service to Zhongshan. This brings to five the number of ports within the Pearl River Delta currently served by the cross-boundary ferry service -- Shekou and Fuyong in Shenzhen, Humen in Dongguan and Macau, and now, Zhongshan.

Two more berths will be added to the SkyPier ferry transfer terminal at Hong Kong International Airport (HKIA) to cater to extra traffic. The new routes will enhance the accessibility of the airport to more residents of the PRD. As transfer travelers, ferry passengers bypass immigration and customs formalities at HKIA, cutting transit time in half.

Hactl "Air Cargo Terminal of the Year" for 3rd consecutive year 
Hong Kong Air Cargo Terminals Limited (Hactl) was named "Air Cargo Terminal of the Year" at the Asia Logistics Awards 2004. This is the third consecutive year that Hactl has won this prestigious award. 

The Asia Logistics Awards is organised by leading trade publication, Lloyd's Freight Transport Buyer Asia, and recognise the industry's top-performers in 13 categories. Readers cast their vote to select finalists, and winners are chosen by an independent panel of judges. 

Mr. Anthony Wong, Hactl's Managing Director, said, "This award is not just an achievement for Hactl, but for the entire Hong Kong International Airport community." 

Economic upturn extended into 3rd Quarter 
The upturn of the Hong Kong economy extended well into the third quarter of 2004, with GDP expanding by 7.2% in real terms over a year earlier, after a 12.1% leap in the second quarter, which was partly inflated by an exceptionally low base of comparison caused by SARS a year earlier. 

On a seasonally adjusted quarter-to-quarter comparison, GDP expanded for the fifth consecutive quarter, by 1.9% in real terms in the third quarter, after the 2.6% growth in the second quarter.

External trade continued to flourish in the third quarter. This was notwithstanding looming uncertainties stemming from oil price hikes and rising interest rates. Exports of goods surged by a further 15.3% in real terms in the third quarter over a year earlier, the ninth consecutive quarter of double-digit growth. Exports of services were also strong, with a remarkable increase of 10.3% over a year earlier. 

Local consumer spending held firm, as employment conditions improved and sentiment remained generally positive. Private consumption expenditure grew by a solid 5.1% in real terms in the third quarter over a year earlier. 

Overall investment spending grew further by 4.9% in real terms in the third quarter over a year earlier. Prompted by strong growth in business activity, expenditure on machinery, equipment and computer software continued to surge. This more than offset the continued lull in construction activity.

The seasonally adjusted unemployment rate fell to a 2-1/2-year low of 6.8% in the third quarter. Total employment maintained a notable growth of 2.7% in the third quarter of 2004 over a year earlier. 

External merchandise up 
In September 2004, the volume of Hong Kong's re-exports of goods increased by 12.9% over September 2003, and that of domestic exports by 2.0%. Taken together, the volume of total exports of goods increased by 12.1%. Concurrently, the volume of imports of goods increased by 10.4%.

Comparing the first nine months of 2004 with the same period in 2003, the volume of Hong Kong's re-exports of goods rose by 17.3%, and that of domestic exports by 1.6%. Taken together, the volume of total exports of goods grew by 16.1%. Concurrently, the imports of goods increased by 16.5% in volume.

Total port cargo throughput increases
In the second quarter of 2004, total port cargo throughput increased by 8% over a year earlier to 55.3 million tonnes. Within this total, inward port cargo increased by 10% to 34.6 million tonnes, while outward port cargo rose by 6% to 20.7 million tonnes. During the same period, the port of Hong Kong handled 5.4 million TEUs of containers, representing an increase of 6% over a year earlier. 

New record for air cargo traffic 
For two months in a row, air cargo throughput at Hong Kong International Airport (HKIA) has set new records. October figures grew by 14.6% over last year to 299,000 tonnes, representing a 7% increase over the previous record of 280,000 tonnes achieved in September. 

Robust cargo growth has been driven by continued strong demand for goods from North America, Europe and Mainland China. Exports (loaded cargo) rose to 195,000 tonnes, a gain of 16.1% over last year, while imports (unloaded cargo) grew by 11.8% to 104,000 tonnes. Both are all-time-high monthly records. 

Riding on the strong demand for air cargo services, total aircraft movements rose by 12.2% to 21,035, making October the busiest month ever for aircraft movements at HKIA. Passenger traffic continued to soar, with a total of 3,354,000 passing through the airport in October, representing an increase of 17.1% compared with the same period last year. 

September posts best tourism figures
Hong Kong’s best-ever September tourism figures have taken total visitor arrivals for the first nine months of 2004 past the 15.7 million mark, more than the total for all of 2003.

Hong Kong welcomed 15,758,092 arrivals in the first nine months of 2004. September’s arrivals represent a 14.2% growth on the 2003 figure and 23.2% growth on the same month in 2002.

Many individual source markets and regions have bettered their 2003 full-year totals, including Mainland China with 8.98 million arrivals from January to September, compared with 8.47 million for all of 2003. Other short-haul markets reaching this landmark include Singapore and Thailand, South Korea, the Philippines, Malaysia and India. In the long-haul markets, the US, the UK, France, Italy, the Netherlands, Australia and New Zealand have all done so.

First Swiss law firm in Hong Kong 
The first Swiss law firm in Hong Kong, S.G. FAFALEN & Co., celebrated its grand opening in October. Registered with The Law Society in Hong Kong, the firm provides Swiss and international legal, tax and trust services to private individuals and corporations. The office in Hong Kong will cover Western Europe, Eastern Europe and Asia.

The firm’s founder, Mr Serge Fafalen, said, "By setting up our office in the strategic location like Hong Kong, we can enjoy privileged access to clients in the Asian financial and banking centres and to the Asian low corporate and individual taxation jurisdictions.

"With the Closer Economic Partnership Arrangement (CEPA) implemented since the beginning of this year, our firm, will enjoy tremendous business opportunities brought along with the increased activities in this region," he added.

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