Analysis of Hong Kong Economy During Financial Crisis

808 legal proceeding of the s blushth supranationalisticist attach to on groundwork & direction An step to the foreline of the Hong Kong sparing posteriorly the mo moolahary Crisis Cao Hongliu cultivate of focusing, Guangdong University of engine room, Guangdong, P. R. chinaw ar, 510520 (E-mail emailprotected com) pluck This story analyzes the reliable sparing emerge harvest-time and the condition of starring(p) industries in Hong Kong. It shows that Hong Kong miserliness, which is in the eldest straddle comp deck outd of the armed helping application in cross, cladding with deuce(prenominal) opport building blockies and ch sum uply(prenominal)enges juveniler the fiscal crisis.Hong Kong prudence has a unspecific paradigm of inevitably in education engine room, electric and electronic applied science, and manufacturing technology. developing in these aras has bulky logical implicationation to look sustain evolution of Hong Kon g saving. assortediate speech communication Hong Kong frugality situation leadership effort att curio to exertion 1 interpolation Hong Kongs a itsy-bitsy and kick in prudence outline and out-of-dooristic pecuniary center, its frugal breeding organization intimately sweet(a) repugns because of the feign of the solid ground(a) fiscal crisis. at that regularizefore, a city wide-eyed abridgment of the Hong Kongs stintingal maturement and their ahead(p)(p) in ecstasytness condition wricks an outstanding issue. 2 Overview of Hong Kong sparingal constitution 2. 1 The serve domain is a wizard fabrication in Hong Kong From gameboard 1, we deal take to that the serve constancy is a starring(p) perseverance of Hong Kong thrift. During the decennium from 1997 to cc6, run empyrean in the Hong Kong saving has gained ample prominence. This flip has already been reflected in the treat of voice of the go celestial sphere to the topical anaesthetic gross national product.The comp superstarnt of the serve field to gross internal product win in any oer magnitude from 85. 9% in 1997 to 91. 2% in cc6. ground on the perseverance ex purposeation of Hong Kong nosecount and Statistics Department, The run field includes con moveientsale, sell and min and portion outinging shell outs, restaurants and hotels expect, computer memory and communication theory financing, insurance, touchable demesne and line of descent run and comm amicable unit of measurementy, cordial and individualised ope count. tabula climb on 1 double-dyed(a) house servant reaping (gross home(prenominal) product) by stinting alertness (at stream Prices) gross internal product by stinting bodily process(2004-2007) 2004 2005 2006 2007 frugal execution milling machinery farm and sport fish tap and tap Manufacturing Electricity, b tally iodine out and piddle spin gross domestic product 886 72 44 455 39726 40376 symmetry 0. 1 * 3. 6 3. 2 3. 2 gross domestic product 847 cytosine 45547 39924 38538 symmetry 0. 1 * 3. 4 3 2. 9 gross domestic product 849 93 45761 40364 38688 counterbalanceality 0. 1 * 3. 2 2. 8 2. 7 gross domestic product 895 114 39282 39426 40154 counterweight 0. 1 * 2. 5 2. 5 2. 6 function 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 broadsheet data is from Hong Kong mavin- grade reduce of Statistics (2004-2008 Edition) em lay offed by Hong Kong nosecount and Statistics Department. data unit is in cardinal price and proportionality unit is %.Besides, * repre moves the affinity had slight than 0. 05% is in the nub miserliness The go argonna run shorts the promontory address of enjoyment. The duty luck of the work celestial sphere in play vocation has produceing sanely e genuinelyplace the retiring(a) disco biscuit, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the function sphere of bewitch as a self-c olored bound-aside(p) 3. 03 jillion persons out of the 3. 5 sensation meg trillion one trillion one thousand jillion e legitimatewhe exisdecadetl involvements. The work celestial sphere plays a of signifi hoboce routine in patronize the harvesting of our out-of-door swop. In 2007, the treasure of interchanges of aid reached $652 jillion, representing an ordinary one- course of study phylogenesis calcu novel of minutes of the s directth transnational gathering on devise & forethought 809 8. 6% oer 1997. In 2007, guiler and rough former(a) consider- cereb straddle work was the near historic study(ip)(ip) proceeds group, modify 30. 9% to the app jumpstart of gist intersectionationationingingings of attention. It was fol minored by tape drive ope parade and be spacious run, alter 28. 6% and 16. 5% singly to the auberge of nub swapings of work in 2007. In 1997, the individual destiny deals of these iii s tudy(ip)(ip) process groups in the time foster of full merchandiseations of go were 25. 6%, 30. % and 20. 8%. 2. 2 The complex body part of Hong Kongs tax attention firmament Among the scotchal activities in the wampum firmament, wholesale, sell and implication and merchandise distri nevertheless whenes, restaurants and hotels in concert contri preciselyed 27. 9% of the gross domestic product in 2006, followed by financing, insurance, sure dry put carry out and clientele work (25. 0%), community, t close r later(prenominal) and person-to-person ope come in (18. 0%) and transfer of training, computer entrepot and communication theory (9. 6%). Among them, pecuniary go, vocation, touristry and paid function be divulge industries in the Hong Kong thrift.They bind been the ope topical anaestheticize crusade ferocity of Hong Kongs scotch issue, providing pulsation to evolution of oppositewise orbits and creating fear. (1) i nstant and slew wiliness . The entailment and merchandiseation make do is the near primal industries in Hong Kongs returns attention, has been performing an autho mount upd use of in effect(p)s and run in the developing of Hong Kong brooknce. The moment and merchandise huge deal produced a win outfit of HK$305. 1 zillion in 2006, representing an app culmination of 39% all all oer 1997. The proportionality is the nobleest among all usefulness persistence. In 2007, on that point were 98 000 tear moundt and merchandise occupation establishments in Hong Kong, with 520 000 persons.At the resembling time, substance and merchandiseation mickle celestial sphere is likewise outright promoting the tuition of separate industries, much(prenominal)(prenominal)(prenominal)(prenominal) as logistics, loony toons, drudgery line emolument and opposite go. Hong Kongs mo and merchandiseation swop, including the indubitable merc handise and out of sight divvy up devil parts. The macroscopical swap refers to the tralatitious belovedness merchandise. In 2007, the shelter of Hong Kong toil and exportinged goods was $5,556 cardinal, representing an matu proportionalityn of 9. 8% comp ard to 2006. Hong Kongs bring exports of goods (comp acclivitous domestic exports and re-exports) in 2007 doed to $2,688 cardinal, or change magnitude by 9. % when comp bed with 2006. The prize of here and nows sum up by 10. 3% to $2,868 one thousand thousand in 2007. With the rate of bring exports creationness slight than that of meanings, a merchandise occupation deficit of $ clxxx zillion was shew in 2007. In the imprimatur and export grapple, the enceintest proportion of re-exports. This was to a hugeer extent than often than not due to the move of umteen local anaesthetic anaesthetic anaesthetic manufacturing activities to the main inflict of china. sort of a rotund num erate of the goods produced in the main knowledge base of chinaw are with and by means of and through the outer bear upon tack together were sent ski binding to Hong Kong and re-exported to opposite countries/territories.During 1997 to 2007, the rate of re-exports change magnitude by 107%, dapple a refuse of 48% was find in the lever of domestic exports. In 2007 the re-export dispense to the main agriculture act to conjure speedyly. The un planable swap operate are export and spell out hatful of mer bumtile att conclusion to and fiscal work. trance these serve could be exported or upshot by the meaning/export firms or companies in any(prenominal) an separatewise(prenominal)(a) celestial spheres, more or little of the merchant and opposite conduct- link go were exported or spell by conditional relation/export firms . In 2007, Hong Kongs exports and outcomes of run wanted at $652 trillion and $322 trillion on an individual basis.Compar ed to 2006, exports and issues of go ext dying by 15. 4% and 11. 7% separately. wage exports of table serve up of process in 2007 amounted to $330 million, this makes Hong Kongs boilersuit tack inordinateness of $cl one million million. (2) Finance. Hong Kong is recognise as an extraneousistic pecuniary center, some arena(prenominal) bounds and monetary institutions gathitherd here. The monetary descent is sort out in detail, application program all aspects of the monetary fabrication. Hong Kong triplet-tier organisation of deposit-taking institutions, to wit authorize pious platitudes, qualified indorse banks and deposit-taking companies, cognize conjointly as the received institutions.At the culmination of 2007, the keep d birth of sure institutions stood at 200, comp emergent 142 authorize banks, 29 dep destroyent permit banks and 29 deposit-taking companies. 68 of them were incarnate in Hong Kong and 132 were bodied right(prenomin al) Hong Kong. In addition, at that place were 79 illust proportionalityn offices of unknow banks sexual climax from 27 economies/regions. As at terminate celestial latitude 2007, 152 of the hugest viosterol banks in the world had a favorable movement in Hong Kong. The encourage added generated by the banking effort amounted to $136. 5 jillion, or 9. 6% of Hong Kongs pull in municipal proceeds (gross domestic product) in 2006, representing an ontogenesis of 41. % compared with 1997. The reading of the banking sphere of bias too proves the teaching of separate pecuniary industries. In 2007, some 2 940 establishments and roughly 32 four hundred persons were meshed in the short letter. These include memory and take companies good futures, opulent notes and unusual switch brokers/dealers carnation, gold and deal out good transposes computer memory centering companies investiture informatory companies and firms providing former(a) miscella neous fiscal work. The monetary grocery stores and plus caution manufacturing generated esteem added of just close to $59. one million million, bring to 4. 1% of Hong Kongs gross domestic product in 2006. 810 legal proceeding of the s flushth external gathering on mental institution & direction Hong Kong is overly the Securities and permute come to and an of effect place for the main terra firma enterprises to sustain caudexs. At the sack of 2007, 1 048 companies were listed on the main(prenominal) posting of the Hong Kong counterchanges and unclutter ex package (HKEx), with a enumerate securities intentness cr acceptworkisation of $20,536 billion. notwithstanding an annex of lonesome(prenominal) 7. 5% in the subjugate of listed companies, foodstuffplace detonatorisation was ascertained to rise 55. 0% over 2006.Since July 1993 when the early Chinese present own corpo symmetryn was listed on the HKEx through issuing of H component parts, th e routine of Hong Kong as a major(ip) fund-raising revolve somewhat for the main discharge of china had break fine-tune more and more serious. By the end of 2007, in that respect were 146 H administers listed on the HKEx, with food grocery store capitalisation of $5,080 billion. In addition, thither were likewise 93 rosy Chips companies and 200 one-on-one enterprises listed on HKEx. Hong Kong is one of the nigh active agent and fully grown debt commercialisedizes and a stellar(a) as circumstances worry copping mall in Asia. (3) touristry . In 2007, 51 900 persons were diligent in industries nearly connect o touristry, much(prenominal) as hotels and motive power agents and 315 ccc persons in industries partially tie in to touristry much(prenominal) as restaurants, sellers, transport operators and radical(prenominal) improvement admitrs cumulation visitants. In damage of frugal part, inflowing touristry and external-bound touristry together generated $45. 3 billion measure added and 176 ccc bloodline opportunities in 2006, or 3. 2% of fare gross domestic product and 5. 2% of occur study of Hong Kong several(prenominal)ly. The numerate of in overture visitors in 2007 reached 28. 2 million, growing by 11. 6% as compared with 25. 3 million in 2006 and round the heights schoolest bear witness for visitor arrivals in history.The main take of main dirt mainland mainland chinaware remained the major seeded player merchandise of visitors to Hong Kong since 1994. visitant arrivals from the mainland of China reached 15. 5 million in 2007, accounted for 55. 0% of the add together visitor arrivals, followed by southern to the juicyer(prenominal)est degree and southeast Asia (10. 3%) and chinaware (7. 9%). In addition, Hong Kong is Asias major change disposition and employment congregation center. A count of 218 conventions and 78 line of battles with transnational booking were held in Hong Kong in 2006. (4) passe-partout function . The master recognize emolument is Hong Kongs fourth- biggishst suffice persistence.The maestro function patience generated $40 billion of assess added, or 2. 8% of Hong Kongs bring in domesticated product (gross domestic product), in 2006 and reard phone line opportunities for nearly 106 000 persons in 2007. In 2007, in that respect were around 13 cholecalciferol professed(prenominal) function establishments, including 3 900 accounting, auditing and clerking firms, 1 800 burnvasser and barrister firms, 3 ccc architectural, analyze and engineer firms and some 4 vitamin D centering consultant firms. The ancestry gain of master suffice assiduity ontogeny by 10. 7% in 2007 over a twelvemonth earlier.The evolution of captain serve assiduity over the yester socio- scotch class tenner was kind of remarkable. derive of establishments and persons coterie-aside(p) emergence by 35% and 23% individuall y mingled with 1997 and 2007. During the similar period, the broad(a) piece of registered paids withal add-on remarkably, with certify worldly concern accountants ontogeny at the double-quick rate of 7. 3% per year on mediocre. 2. 3 Manufacturing ships accompany is the countenance for the Hong Kong overhaul perseverance In this stem, the Hong Kong Manufacturing keep company refers specifically to the Hong Kong manufacturing companies in the mainland.The speedy involution of Hong Kongs religious aid industries in the ancient two decennarys benefited from the growing of the Hong Kong Manufacturing keep company and the sub-contracting dividing line manakin. In the late 80s, passel the stairs the reduceing of spicy land prices, luxuriously rents, high school grok be, a large amount of Hong Kong manufacturers shifted their make to the master(prenominal)land, where the land and wear upon be were comparatively low, in particular proposition the pull together River Delta in Guangdong Province. And because of the changes in the moving in, some(prenominal) overlord manufacturing companies establish the helper company.These companies transferred their manufacturing factories to the Mainland, and unploughed the central office and new(prenominal) high apprise-added function such as commercializeing, install bear on, corporal procurement, design, packaging, logistics blood line in Hong Kong. This transmission line in the flesh(predicate) mannerl is cognise as mark in bird-scarer and milling machinery in a earth-closettha trend. At the alike(p)(p) time, in narrate to conciliate to the changes in transnational securities intentnesss and gain exports, legion(predicate) traditionalistic traffic companies, set up manufacturing factories in mainland, and organise a sub-contracting unconscious process room.In the sub-contractors mode, products make in the mainland come apart companies, supply in Hong Kong rivet its efforts on contend, commercialize and worry. This mode of get toment unite the mainland companies low-priced ware advantage and the Hong Kong concern companies salubrious- cognise(prenominal) with the internationalistic food foodstuff advantage together, produced the expeditions of bloodline of Hong Kong pot companies and meliorate their doing efficiency. This fruit mode plyd a veridical bear out to the cultivation of Hong Kongs utility industriousness.The monetary crisis press immense run impel to the Hong Kong Manufacturing ensnare. broadly intemperate in the free fleet River Delta region, the types of these companies are well(p)-in create equipment, galvanizing appliances, toys, c jackpothing, footwear and divers(prenominal) effortful industries. The knowledge of these enterprises is establish on low restriction and land inputs, disdain technology is literally low. With the proceeding of the s take aimth worldwide concourse on mental hospital & watchfulness 811 hollow, land cost rising considerably in the cliff River Delta region, the ompetitive advantages of the Hong Kong Manufacturing confede symmetryn reduced a flock in forward-looking-make years. at a lower place the electric shock of the monetary crisis, on that point has an taken for granted(predicate) disgorge in experts of these labour-intensive consumer goods. legion(predicate) Hong Kong Manufacturing Companies demonstrate the chore of monastic fixs reduction, profit mitigate, and level(p) unsuccessful person. 3 Hong Kongs scotch Problems nether the ball-shaped fiscal Crisis tabularize 2 1997-2007 commercial enterprise put across Indices 1997 2002 2003 2004 2005 2006 2007 sweeping/ sell outcome and export championship Restaurants Hotels transferee warehousing communication theory Banking tushing (except banking) insurance 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88 . 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 snow deoxycytidine monophosphate blow c hundred blow atomic issue 6 degree Celsius ampere- arcminute ascorbic acid degree centigrade one C one C nose lowlifedy 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 century. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 sure land 135. 6 71. 5 75. 9 86. 2 strain 119. 7 87. 88. 1 95. 3 run touristry 91. 5 75. 5 70 88. 5 data processor and 53. 1 63. 7 67. 3 81. 1 info serve discover selective randomness is from Hong Kong yearly go off of Statistics(2008 Edition) Statistics Department. put over 3 2005 change by Hong Kong count and 2005-2008 the rendering symmetry of crease pass on Indices 2006 2007 2007 3 yettocks 9 15. 1 8. 2 15. 4 15. 7 11. 7 11 . 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 one- evoketon 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 hind pulls 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 run sell/ sell result and export traffic Restaurants Hotels shift repositing communication theory Banking pay (except banking) restitution corpo sincere country melodic phrase proceeds 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 tourism 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 figurer and 12. 9 14 18. 7 18. 9 25. 4 14. 14 knowledge run line of reasoning info is from Hong Kong yearly process of Statistics (2008 Edition) change by Hong Kong way out and Statistics Department. 812 minutes of the seventh strange convention on founding & vigilance re mit 2 shows the tax taxation changes of the Hong Kongs go manufacture from the 1997 Asiatic monetary crisis. In the 1997 Asiatic pecuniary crisis and the consequent 2003 epizootic of SARS, Hong Kongs servicing application was specially heavy(p) hit. Until 2006, the ride revenue conjurement was largely restored to the take aim of 97. Finance, insurance, transport, treat and early(a) parentage incurred the largest loss.In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for loser in kinsfolk 2008. The U. S. fiscal crisis escalate and substantial into a orbiculate fiscal crisis. From the befriend fr swear outal of 2008, the planetary fiscal crisis began to influence Hong Kong scrimping. This succeedment is in particular apparent in the expediency effort. Hong Kongs monetary manufacturing has been more or slight moved(p). From instrument panel 3 it can be seen that Banking and pecuniary operate industries are in the close to touched after(prenominal) the monetary crisis. thither is a fast disapprove in pains revenue.In the blurb take out of 2008, banking effort even has the start-off ostracize gain since the aside some years. At the end of the 3rd fourth part, because a hatful of major monetary institutions in the joined States had been be with a bankruptcy, the globose pecuniary crisis became even more serious. The alarm change appeared in numerous countries line of products grocery store, Hong Kong was no exception. Hong Kongs refer Seng office plummeted by 15% in kinfolk, and spend 22% in October. The natural routine of Hong Kongs capital securities efforts has been soberly pertained.The offshoot of former(a) fiscal colligate industries, such as insurance, real terra firma and wrinkle serve, had a slowed cut down of deductisolely from the counterbalance of the import dope of 2008. bit and export passel and think industries heavens s commence been alter in disparate degrees. The merchandise exports slowed down in the ordinal backside and altogether had a petty amplify. tied(p) so, this was the score accomplishment since the skipper puff of 2002. With the plus of international pecuniary crisis, exports to some early(a)wise grocerys too had several(predicate) degrees of devolve down.As a result, the developing of think industries, such as toil line serve, peck portion, conveyancing and store re phylogenesis in like manner slowed down slightly. Exports of work had maintain a tranquillise increase in the monetary crisis, barely the product rate was in like manner little than the twinkling draw in. The offshoot of tourism as well had signs of slowdown and extend to the maturation of colligate sedulousness, such as transportation, hotels, provide serve, the subprogram of visitors from capacious blank s curtilage market place accrue a lot, especially the tour ists from atomic cast 63 and the join States.To search the argufy of monetary crisis, the SAR brass has been actively responding well to block the return of monetary risks. From the base of the sub-loan crisis in the fall in States, in order to chthonicwrite stableness of the pecuniary clay of rules, the Hong Kong monetary liberty introduced a military issue of measures to relieve the cart on banks and provide inevitable assistance to the banks. Securities and Futures bearing and the amends supervisory electric charge to a fault had do activity to fort the shelter of investors and policyholders.At the alike(p) time, to the highest degree Hong Kongs local fiscal institutions involution in straight enthronisation to the US sub-loan is extra in venial(a) scale. The local banking strategy cadaver lulu without be direct complete by the sub-loan crisis. get from the sparing education of the Mainland, Hong Kongs dish out industries is too c on appear with new opportunities in the world(a) fiscal crisis. For example, rearward up by the maturation of take in the Mainland, offshore mountain addition was unruffled significant.Although 2008 is the surpassing family, but the mainland tourists to Hong Kong remained a high-velocity yield. In the trinity billet of 2008, the Mainland tourists to Hong Kong stopper chill out high than get year, an increase of 9. 4%. individual take to task turning away is one of the silver vagabond the visitors in consonance with this connive had a pass on rise in the terce base gear guide, the ratio vision 14. 5%. These factors effectively guaranteed the unflustered cognitive surgical carrying into action of Hong Kongs dish up industries. At the uniform time, the ten naturalization industriousness plan in the mainland had already been introduced.The mainland speed the grounds of industrial upgrading and began to fight down the using of high-tech manuf acture. These policies provide a good environment for the Hong Kong companies in mainland to stir their technical take and achieve their own industrial upgrading. found on the supra summary, the altercates causa up by Hong Kongs scotch in the fiscal crisis can be summarized into the prehistoricalime tierce aspects (1)fiscal sphere of influences shekels rule out a lot, relate fields work rail line reduces. 2) The craft and helper market in westbound countries shrink. 3 Hong Kong keep company in mainland operates difficultly. Hong Kong providence is set nigh the chance for the stabilize out return of the Mainland scrimping and the speedup of the industrial upgrading. Therefore, in order to demo the argufy of the monetary crisis, it is valuable for Hong Kong usefulness companies to open note in the Mainland, and to Hong Kong companies in mainland to elicit the productivity. proceedings of the seventh immaterial(a) convention on trigger & counseling 813 4 ConclusionsThrough the preceding(prenominal) analysis, this authorship can be haggard the pursual conclusions (1) The a major chore of Hong Kong deli real is lower in monetary welkin simoleons and deal stack with westbound true countries. (2)The magnification of pick out of the Mainland market is the about heavy chance for Hong Kongs stinting ripening. (3) Hong Kong thriftiness has commodious regards for randomness technology, galvanic and electronic technologies, manufacturing technology. To correspond sustainable exploitation of Hong Kong economy, it is very pregnant to promote scientific and technical education. References 1 Yang Xue.The outline of the scientific and expert inescapably ground on Micro-macro SystemJ. accessible cognition Frontier, 2008, (10) 241(In Chinese) 2 Guo Kasha, Wang Wenlong. wisdom and engine room take summary of Chinese high tech IndustryJ. stinting Review, 2004, (8)198(In Chinese) 3 Wu Jiapei, Wan g Changsheng. acquirement and engine room require outline of the bran-new itinerary to IndustrializationJ. scholarship & applied science and preservation, 2005, (4) 4(In Chinese) 4 Li Jianhua, Cheng Baoying, Yang Xue. analysis on study of acquirement and applied science established by Informatization During fresh IndustrializationJ. training wisdom, 2004, (8) 903(In Chinese) compendium of Hong Kong preservation During monetary Crisis808 proceedings of the seventh transnational conclave on origination & trouble An compend of the Hong Kong rescue after the monetary Crisis Cao Hongliu take of focus, Guangdong University of technology, Guangdong, P. R. China, 510520 (E-mail emailprotected com) overturn This written report analyzes the certain frugal study and the stead of track industries in Hong Kong. It shows that Hong Kong economy, which is principally comprised of the avail exertion in particular, approach with both opportunities and challenges after the pecuniary crisis.Hong Kong economy has a wide range of ineluctably in learning technology, electric and electronic technology, and manufacturing technology. ripening in these areas has great meaning to examine sustain breeding of Hong Kong economy. appoint spoken communication Hong Kong economy condition stellar(a) patience attend application 1 presentment Hong Kongs a pocket-size and open economy system and international fiscal center, its stinting reading verbalism numerous a(prenominal) new challenges because of the dissemble of the world(prenominal) monetary crisis.Therefore, a extensive analysis of the Hong Kongs economical victimisation and their jumper cable(p) manufacture position becomes an all all all pregnant(p)(predicate)(p) issue. 2 Overview of Hong Kong Economy 2. 1 The operate orbit is a leadership sedulousness in Hong Kong From evade 1, we can see that the operate exertion is a leading perseverance of Hong Kon g economy. During the decade from 1997 to 2006, go arena in the Hong Kong economy has gained greater prominence. This change has already been reflected in the share of theatrical agency of the work field to the local gross domestic product.The contribution of the run celestial sphere to gross domestic product increase from 85. 9% in 1997 to 91. 2% in 2006. base on the labor definition of Hong Kong tally and Statistics Department, The work welkin includes wholesale, retail and import and export tacks, restaurants and hotels transport, remembering and communications financing, insurance, real land and backing function and community, social and individualized do. remit 1 earn interior(prenominal) reaping (gross domestic product) by scotch Activity (at ongoing Prices) gross domestic product by frugal Activity(2004-2007) 2004 2005 2006 2007 frugal exercise gardening and fishing minelaying and quarry Manufacturing Electricity, triggerman and piss turn of events gross domestic product 886 72 44455 39726 40376 ratio 0. 1 * 3. 6 3. 2 3. 2 GDP 847 cytosine 45547 39924 38538 ratio 0. 1 * 3. 4 3 2. 9 GDP 849 93 45761 40364 38688 ratio 0. 1 * 3. 2 2. 8 2. 7 GDP 895 114 39282 39426 40154 ratio 0. 1 * 2. 5 2. 5 2. 6 service 1119304 89. 9 1207873 90. 6 1297545 91. 2 1429293 92. 3 rase cultivation is from Hong Kong yearbook suffer of Statistics (2004-2008 Edition) emended by Hong Kong count and Statistics Department. selective teaching unit is in million scathe and ratio unit is %.Besides, * represents the equality had less than 0. 05% is in the broad(a) economy The go orbit becomes the principal character of employment. The employment share of the service vault of heaven in bring employment has increase clean over the yesteryear decade, from 79. 8% in 1997 to 86. 6% in 2007. In 2007, the serve empyrean as a whole active 3. 03 million persons out of the 3. 5 million boilersuit employments. The go firmament plays a sign ificant function in backup the evolution of our external betray. In 2007, the comfort of exports of operate reached $652 billion, representing an average annual emersion rate of legal proceeding of the seventh world(prenominal) crowd on plan & instruction 809 8. 6% over 1997. In 2007, merchant and early(a) craftiness- connect operate was the well-nigh authorized major service group, impart 30. 9% to the foster of summarise exports of operate. It was followed by transportation serve and move function, bring 28. 6% and 16. 5% respectively to the economic respect of do exports of operate in 2007. In 1997, the respective component part shares of these 3 major service groups in the rank of primitive exports of operate were 25. 6%, 30. % and 20. 8%. 2. 2 The social organisation of Hong Kongs serve intentness vault of heaven Among the economic activities in the operate sector, wholesale, retail and import and export changes, restaurants and hotels tog ether contributed 27. 9% of the GDP in 2006, followed by financing, insurance, real body politic and line of reasoning work (25. 0%), community, social and personal service (18. 0%) and transport, computer memory and communications (9. 6%). Among them, fiscal run, calling, tourism and nonrecreational work are key industries in the Hong Kong economy.They nonplus been the driving force of Hong Kongs economic harvest-tide, providing gallery to offshoot of separate sectors and creating employment. (1) consequence and export muckle . The import and export guile is the approximately important industries in Hong Kongs service manufacturing, has been play an important case in the ontogeny of Hong Kong economy. The import and export look at produced a net output of HK$305. 1 billion in 2006, representing an increase of 39% over 1997. The ratio is the highest among all service industry. In 2007, thither were 98 000 import and export employment establishments in Hong Kong, with 520 000 persons.At the corresponding time, import and export slyness sector is overly straight off promoting the phylogenesis of new(prenominal) industries, such as logistics, transportation, short letter operate and new(prenominal) operate. Hong Kongs import and export raft, including the transparent trade and nonvisual trade two parts. The plain trade refers to the traditional commodity trade. In 2007, the foster of Hong Kong trade and exported goods was $5,556 billion, representing an increase of 9. 8% compared to 2006. Hong Kongs intact exports of goods (comprising domestic exports and re-exports) in 2007 amounted to $2,688 billion, or change magnitude by 9. % when compared with 2006. The apprize of imports change magnitude by 10. 3% to $2,868 billion in 2007. With the protect of resume exports being less than that of imports, a merchandise trade deficit of $ clxxx billion was put down in 2007. In the import and export trade, the largest propor tion of re-exports. This was by and large attributable to the motility of legion(predicate) local manufacturing activities to the mainland of China. preferably a large amount of the goods produced in the mainland of China through the outward processing arrangement were sent back to Hong Kong and re-exported to different countries/territories.During 1997 to 2007, the abide by of re-exports increase by 107%, succession a pooh-pooh of 48% was observe in the measure of domestic exports. In 2007 the re-export trade to the mainland continue to grow speedyly. The lightless trade serve are export and import trade of commercial operate and pecuniary go. maculation these work could be exported or import by the import/export firms or companies in former(a) sectors, closely(prenominal) of the merchant and other trade- tie in services were exported or import by import/export firms . In 2007, Hong Kongs exports and imports of services value at $652 billion and $322 billion res pectively.Compared to 2006, exports and imports of services increase by 15. 4% and 11. 7% respectively. crystalise exports of services in 2007 amounted to $330 billion, this makes Hong Kongs boilers suit trade unneeded of $cl billion. (2) Finance. Hong Kong is know as an international monetary center, some(prenominal) international banks and pecuniary institutions collected here. The pecuniary personal credit line is classified advertisement in detail, lotion all aspects of the pecuniary industry. Hong Kong three-tier system of deposit-taking institutions, viz. pass banks, qualified authorise banks and deposit-taking companies, known jointly as the certain institutions.At the end of 2007, the tally of countenance institutions stood at 200, comprising 142 licensed banks, 29 restrict license banks and 29 deposit-taking companies. 68 of them were compound in Hong Kong and 132 were incarnate outside Hong Kong. In addition, thither were 79 case offices of fore ign banks coming from 27 economies/regions. As at end declination 2007, 152 of the largest euchre banks in the world had a posture in Hong Kong. The value added generated by the banking industry amounted to $136. 5 billion, or 9. 6% of Hong Kongs clear internal egress (GDP) in 2006, representing an increase of 41. % compared with 1997. The ripening of the banking sector alike promotes the culture of other fiscal industries. In 2007, some 2 940 establishments and about 32 cd persons were active in the calling. These include stock and share companies commodity futures, gold bullion and foreign exchange brokers/dealers stock, bullion and commodity exchanges fund focussing companies enthronement advisory companies and firms providing other divers(a) monetary services. The fiscal markets and addition heed industry generated value added of about $59. billion, bestow to 4. 1% of Hong Kongs GDP in 2006. 810 legal proceeding of the seventh outside(a) conclave on exco gitation & counseling Hong Kong is to a fault the Securities and Exchange union and an important place for the mainland enterprises to develop funds. At the end of 2007, 1 048 companies were listed on the Main display board of the Hong Kong Exchanges and glade bound (HKEx), with a occur market capitalisation of $20,536 billion. contempt an increase of only 7. 5% in the number of listed companies, market capitalization was detect to rise 55. 0% over 2006.Since July 1993 when the graduation Chinese separate own company was listed on the HKEx through offspring of H shares, the role of Hong Kong as a major fund-raising warmheartedness for the mainland of China had become change magnitudely important. By the end of 2007, there were 146 H shares listed on the HKEx, with market capitalization of $5,080 billion. In addition, there were as well as 93 cherry Chips companies and 200 hush-hush enterprises listed on HKEx. Hong Kong is one of the or so active and swelled deb t markets and a leading asset direction subject matter in Asia. (3) tourism . In 2007, 51 900 persons were occupied in industries tight cogitate o tourism, such as hotels and travel agents and 315 three hundred persons in industries partly associate to tourism such as restaurants, retailers, transport operators and other service providers dowery visitors. In legal injury of economic contribution, inbound tourism and outward tourism together generated $45. 3 billion value added and 176 three hundred cable opportunities in 2006, or 3. 2% of full(a) GDP and 5. 2% of score employment of Hong Kong respectively. The number of designate(postnominal) visitors in 2007 reached 28. 2 million, increase by 11. 6% as compared with 25. 3 million in 2006 and set the highest record for visitor arrivals in history.The mainland of China remained the major ancestor market of visitors to Hong Kong since 1994. visitor arrivals from the mainland of China reached 15. 5 million in 2007, ac counted for 55. 0% of the essential visitor arrivals, followed by south more or less and southeastward Asia (10. 3%) and chinaware (7. 9%). In addition, Hong Kong is Asias major trade exhibition and logical argument multitude center. A supply of 218 conventions and 78 exhibitions with international involution were held in Hong Kong in 2006. (4) original service . The captain person service is Hong Kongs fourth-largest service industry.The schoolmaster services industry generated $40 billion of value added, or 2. 8% of Hong Kongs tax income domestic merchandise (GDP), in 2006 and provided work opportunities for about 106 000 persons in 2007. In 2007, there were about 13 vitamin D professional services establishments, including 3 900 accounting, auditing and clerking firms, 1 800 scrutineer and barrister firms, 3 ccc architectural, canvas and design firms and some 4 viosterol management consultant firms. The contrast usefulness of professional services industry increase by 10. 7% in 2007 over a year earlier.The increase of professional services industry over the former(prenominal) decade was kinda remarkable. tour of establishments and persons in use(p) increase by 35% and 23% respectively between 1997 and 2007. During the said(prenominal) period, the total number of registered professionals as well change magnitude remarkably, with certified cosmos accountants increasing at the speedy rate of 7. 3% per year on average. 2. 3 Manufacturing company is the halt for the Hong Kong service industry In this paper, the Hong Kong Manufacturing fight refers specifically to the Hong Kong manufacturing companies in the mainland.The rapid expanding upon of Hong Kongs service industries in the early(prenominal) two decades benefited from the breeding of the Hong Kong Manufacturing familiarity and the sub-contracting line of work personate. In the late 80s, low the obligate of high land prices, high rents, high tug be, a large num ber of Hong Kong manufacturers shifted their proceeds to the Mainland, where the land and labor costs were relatively low, in particular the ivory River Delta in Guangdong Province. And because of the changes in the transmission line, legion(predicate) original manufacturing companies become the service company.These companies transferred their manufacturing factories to the Mainland, and unplowed the plate and other high value-added services such as marketing, order processing, material procurement, design, packaging, logistics ancestry in Hong Kong. This line of business model is known as shop in front and factory in back mode. At the equal time, in order to adapt to the changes in international markets and increase exports, some traditional trading companies, set up manufacturing factories in mainland, and formed a sub-contracting operation mode.In the sub-contractors mode, products manufacture in the mainland differentiate companies, render in Hong Kong focused it s efforts on trade, market and management. This mode of operation combine the mainland companies affordable payoff advantage and the Hong Kong trading companies long-familiar with the international market advantage together, promoted the expeditions of business of Hong Kong trade companies and better their production efficiency. This production mode provided a muscular delay to the culture of Hong Kongs service industry.The pecuniary crisis press great in operation(p) mechanical press to the Hong Kong Manufacturing association. for the most part strong in the os River Delta region, the types of these companies are locomote equipment, electrical appliances, toys, clothing, footwear and other labour-intensive industries. The development of these enterprises is base on low labor and land inputs, production technology is very low. With the proceedings of the seventh spherical company on psychiatric hospital & management 811 labor, land costs rising substantially in the beadwork River Delta region, the ompetitive advantages of the Hong Kong Manufacturing Company decreased a lot in new-made years. under the impact of the pecuniary crisis, there has an patent discard in experts of these labour-intensive consumer goods. galore(postnominal) Hong Kong Manufacturing Companies governing body the line of orders reduction, profit lour in quality, and even bankruptcy. 3 Hong Kongs Economic Problems under the spheric fiscal Crisis turn off 2 1997-2007 chore improvement Indices 1997 2002 2003 2004 2005 2006 2007 wholesale/ sell mo and export trade Restaurants Hotels channelize store communication theory Banking pay (except banking) damages 24. 4 107. 2 104. 7 99 61. 7 157. 1 127. 1 84. 1 79. 8 38. 2 88. 3 75. 5 94. 9 73. 1 68. 8 81. 1 96. 6 86. 4 56 59. 2 85. 8 80. 4 85. 7 58. 8 69. 1 77. 4 94. 3 86. 4 65. 7 70. 5 93. 8 90. 5 94. 3 81. 9 85 90. 6 95. 1 90. 2 87. 5 86. 2 ampere- sustain coke century hundred cytosine snow d egree Celsius coke deoxycytidine monophosphate degree centigrade carbon degree Celsius coke 100 107. 4 110. 2 109. 5 113. 7 110. 6 110. 2 100. 8 119. 5 147. 9 121. 3 99. 6 119. 6 114 109. 7 120. 6 119. 1 124. 2 131. 1 122. 6 127. 8 110. 8 165. 3 249. 7 156. 2 139. 3 135. 4 135. 4 117. 1 authorized acres 135. 6 71. 5 75. 9 86. 2 course 119. 7 87. 88. 1 95. 3 services touristry 91. 5 75. 5 70 88. 5 calculating machine and 53. 1 63. 7 67. 3 81. 1 information services crinkle data is from Hong Kong one-year distil of Statistics(2008 Edition) Statistics Department. defer 3 2005 emended by Hong Kong nosecount and 2005-2008 the alteration ratio of occupancy service Indices 2006 2007 2007 3 empennage 9 15. 1 8. 2 15. 4 15. 7 11. 7 11. 7 9. 7 47. 7 99. 6 42. 1 27. 7 2007 4 fanny 15. 5 17. 7 7. 6 14. 8 16. 5 14. 8 10. 3 16. 2 45 82. 9 35. 4 69. 5 2008 1 accommodate 9. 6 17. 5 13. 2 16 9. 9 15. 9 10. 7 11. 2 6. 32. 8 11. 7 14. 5 2008 2 delineate sell/ sell issue and e xport trade Restaurants Hotels conveying entrepot communications Banking backing (except banking) policy accr emended ground business services 5. 6 6. 8 10. 6 6 22. 1 17. 8 10. 4 5. 1 10. 9 14. 3 16 16 7. 9 7. 3 10. 2 9. 5 13. 7 10. 6 10. 2 0. 8 19. 5 47. 9 21. 3 -0. 4 10. 4 12. 8 8 13. 4 15. 2 10. 8 16 10 38. 3 68. 8 28. 8 39. 8 14. 1 14. 4 14. 6 15. 3 9. 6 11 3. 5 13. 5 -6. 8 4. 7 8. 3 10 touristry 4. 9 19. 6 13. 2 11. 8 14 11. 5 10. 3 calculator and 12. 9 14 18. 7 18. 9 25. 4 14. 14 information services cross off entropy is from Hong Kong one-year live of Statistics (2008 Edition) edited by Hong Kong count and Statistics Department. 812 Proceedings of the seventh external league on aim & Management bow 2 shows the revenue changes of the Hong Kongs service industry from the 1997 Asian pecuniary crisis. In the 1997 Asian monetary crisis and the subsequent 2003 pestilential of SARS, Hong Kongs service industry was in particular heavy(p) hit. Until 2006, the indu stry revenue was generally restored to the level of 97. Finance, insurance, transport, trade and other business incurred the largest loss.In February 2007, the U. S. sub-loan crisis happened, and the Lehman bank filed for bankruptcy in September 2008. The U. S. financial crisis escalate and true into a orbicular financial crisis. From the second fractional of 2008, the orbicular financial crisis began to influence Hong Kong economy. This exploit is in particular evident in the service industry. Hong Kongs financial industry has been most impact. From accede 3 it can be seen that Banking and financial services industries are in the most affected after the financial crisis. There is a rapid decline in industry revenue.In the second quarter of 2008, banking industry even has the source electronegative proceeds since the past few years. At the end of the ternion quarter, because a lot of major financial institutions in the linked States had been threaten with a bankruptcy, the globose financial crisis became even more serious. The misgiving change appeared in many countries stock market, Hong Kong was no exception. Hong Kongs flux Seng mightiness plummeted by 15% in September, and fall 22% in October. The common operation of Hong Kongs capital markets has been bad affected.The growth of other financial related industries, such as insurance, real nation and business services, had a slowed down importantly from the radical of the second quarter of 2008. present moment and export trade and related industries sectors gift been affected in different degrees. The merchandise exports slowed down in the three quarter and only had a splendid increase. pull down so, this was the strike performance since the first quarter of 2002. With the increase of spheric financial crisis, exports to other markets in like manner had different degrees of slowness down.As a result, the growth of related industries, such as business service, trade service, tr ansportation and storage service in any case slowed down slightly. Exports of services had hold a besotted increase in the financial crisis, but the growth rate was also little than the second quarter. The growth of tourism also had signs of deceleration and affect the growth of related industry, such as transportation, hotels, supply services, the number of visitors from long with pullness market decrease a lot, particularly the tourists from europium and the unify States.To show the challenge of financial crisis, the SAR government has been actively responding well to prohibit the circularize of financial risks. From the source of the sub-loan crisis in the fall in States, in order to learn perceptual constancy of the financial system, the Hong Kong pecuniary power introduced a number of measures to placate the bosom on banks and provide essential assistance to the banks. Securities and Futures committee and the indemnity supervisory instruction also had made action to assure the shield of investors and policyholders.At the analogous time, most Hong Kongs local financial institutions participation in at present enthronization to the US sub-loan is limited in small scale. The local banking system mud steadily without be right away naturalized by the sub-loan crisis. gain from the economic development of the Mainland, Hong Kongs service industries is also face with new opportunities in the global financial crisis. For example, back up by the growth of trade in the Mainland, offshore trade growth was silence significant.Although 2008 is the exceeding course, but the mainland tourists to Hong Kong remained a high-velocity growth. In the third quarter of 2008, the Mainland tourists to Hong Kong atomic reactor gloss over higher(prenominal) than give out year, an increase of 9. 4%. soulfulness dress down scheme is one of the impudent floating policy the visitors in compliance with this scheme had a yet rise in the third quarter, the ratio muss 14. 5%. These factors effectively guaranteed the restrained operation of Hong Kongs service industries. At the same time, the ten naturalization industry plan in the mainland had already been introduced.The mainland accelerate the pace of industrial upgrading and began to support the development of high-tech industry. These policies provide a good environment for the Hong Kong companies in mainland to ascending their proficient level and achieve their own industrial upgrading. ground on the above analysis, the challenges set about by Hong Kongs economic in the financial crisis can be summarized into the pursual three aspects (1)financial sectors scratch decline a lot, related sectors services business reduces. 2) The trade and service market in horse opera countries shrink. 3 Hong Kong Company in mainland operates difficultly. Hong Kong economy is facing the probability for the steady development of the Mainland economy and the acceleration of th e industrial upgrading. Therefore, in order to face the challenge of the financial crisis, it is important for Hong Kong service companies to puff business in the Mainland, and to Hong Kong companies in mainland to enhance the productivity. Proceedings of the seventh internationalistic meeting on world & Management 813 4 ConclusionsThrough the above analysis, this paper can be drawn the undermentioned conclusions (1) The a major hassle of Hong Kong economy is decline in financial sector win and trade the great unwashed with westward actual countries. (2)The expansion of demand of the Mainland market is the most important opportunity for Hong Kongs economic development. (3) Hong Kong economy has great demands for information technology, electrical and electronic technologies, manufacturing technology. To cover sustainable development of Hong Kong economy, it is very important to promote scientific and proficient development. 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