In the first quarter of 2004, 38% of Hong Kong's total exports to the Mainland were for outward processing. The proportion was 64% for domestic exports and 37% for re-exports. However, 68% of Hong Kong's imports from the Mainland were related to outward processing, the Census & Statistics Department says.

Over the same period, 80% of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing on the Mainland.

The corresponding proportions for exports to the Mainland in the first quarter of 2003 were 41% for total exports, 64% for domestic exports and 40% for re-exports, whilst the proportions for imports from the Mainland and for re-exports of Mainland origin to other places were 68% and 78%.

In value terms, $71.4 billion of Hong Kong's total exports to the Mainland in the first quarter of 2004 were for outward processing, representing a rise of 8% over the same period last year.

The value of domestic exports to the Mainland for outward processing fell 9% to $4.6 billion whilst the value of re-exports to the Mainland for outward processing rose 10% to $66.7 billion.

Over the same period of comparison, the value of imports from the Mainland related to outward processing rose 14% to $130.5 billion. Some $149.3 billion of Hong Kong's re-exports of Mainland origin to other places were produced through outward processing on the Mainland, an increase of 15%.