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Hong Kong as a Trading Hub:Entrepot and Beyond



  The latest trade and port cargostatistics indicate that HongKong's trade growth lags sub-stantially behind that ot malnlandChina. This has raised questions ofhow-and for how long-Hong Kongwill continue to benefit from theMainland's booming export trade.Hong Kong's status as a primary en-trepot for Mainland products is nowunder challenge. Hong Kong shouldnot ignore the fact that it may no lon-ger have comparative advantages inhandling physical exports from theMainland on their way to other desti-nations. By accepting this reality, theterritory can shift its energies to focuson areas in which it can still excel-namely, becoming a hub for the tradeof "invisible" goods and services, suchas offshore trade that is not reflectedin the statistics, and capital and finan-cial market instruments.
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