The AI industry chain explodes and takes Hong Kong's trade! Exports recorded the strongest increase since 1984 in June

The Zhitong Finance App learned that, driven by the global artificial intelligence (AI) boom, Hong Kong's exports recorded the biggest increase in more than 40 years in June and reached a record high. According to data released by the Statistics Department of the Hong Kong Government on Monday, the value of Hong Kong's exports in June soared 53.4% from the same period last year, the biggest increase since 1984, bringing total exports to a record high of HK$641.1 billion (about US$81.8 billion).

This increase exceeded the forecasts of all economists in the media survey, after exports had grown by 40.8% in May. According to government data, this surge in exports was largely driven by demand for electronic products driven by global AI infrastructure construction. Among them, exports of electric machinery and parts, data processing machines, and telecommunications equipment became the main growth drivers.

Hong Kong's exports recorded the fastest growth rate in 42 years in June

A Hong Kong government spokesperson said in a statement: “Looking ahead, strong global demand for AI-related electronic products should continue to support Hong Kong's commodity trade performance. However, the recent escalation of geopolitical tension in the Middle East is worth watching.”

Almost all trade activity in Hong Kong is driven by re-export trade. Hong Kong itself does not produce much AI hardware, but it has become an important channel for the import and export of high-tech products in China, and is gradually becoming a key node in the booming AI trade in Asia.

By region, in June, Hong Kong's exports to Singapore increased by 83%, exports to Taiwan increased by 80%, and exports to mainland China increased by 59%. Outside of Asia, Hong Kong's exports to the US increased by 114%.

The Hong Kong Trade Development Council anticipates that the impact of the new US tariffs on Hong Kong will be limited. Last week, the Trump administration imposed a new 12.5% tariff on Chinese goods, including Hong Kong, on the grounds that Hong Kong is not doing enough to resolve the issue of forced labor. These new rates replace the 10% global tariff due July 24.

The Hong Kong Trade Development Council said in a press release: “Although the tariff increase will affect Hong Kong's exports to the US, it is worth noting that there are still various exemptions, including some electronic products, which account for the majority of Hong Kong's exports to the US.”

Meanwhile, Hong Kong's imports increased by 45.4% year-on-year in June, the strongest increase since 1992. Imports from South Korea rose sharply by 177%, recording a fifth consecutive month of three-digit growth.

Bruce Pang, head of research at the Hong Kong Trade Development Council, said: “Overall, the growth momentum of Hong Kong's commodity exports is likely to slow down in the next few months. The reasons include a possible gradual stabilization of the technology cycle, a slowdown in global economic growth, and the high base effect of the same period last year.”