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Hong Kong's Trade Volumes Rise in April on Growing AI Demand

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Hong Kong's Trade Volumes Rise in April on Growing AI Demand

Hong Kong's exports and imports both rose in April on the back of growing AI demand.

The volume of exports increased 32.3% and imports climbed 34% from a year earlier, according to Tuesday data from the Census and Statistics Department.

April's export volume was higher than that in March, which rose 28.8%, but imports slightly slid from the previous month's growth of 34.6%.

Moreover, the value of Hong Kong's exports jumped 42.9% and imports rose 44.4% during the same month.

Meanwhile, export and import prices rose 8.1% and 8%, respectively, in April from a year earlier.

The rise in exports was attributed to increases in raw materials and semi-manufactured and capital goods, which climbed 41.9% and 27.2%.

The imports of semi-manufactures and capital goods, which rose a respective 44% and 29.4%, were also the main drivers for the increase in import volumes.

The growing demand for artificial intelligence is a huge factor for driving Hong Kong's trade, despite the risk of geopolitical tensions.

"Looking ahead, resilient global demand for AI-related electronic products should provide continued support to Hong Kong's merchandise trade performance," a government spokesperson said. "Yet, heightened geopolitical tensions in the Middle East could pose a salient risk in the near term through disrupting supply chains, driving up transport costs and undermining global demand."

More and more AI companies have been listing on the Hong Kong Stock Exchange this year. Between January and May, funds raised from IPOs, especially from the listings of Chinese AI companies, more than doubled year on year to HK$166.8 billion. Among the startups that have applied for a Hong Kong listing are Knowledge Atlas Technology (HKG:2513), also known as Zhipu AI, and MiniMax (HKG:0100), according to a June 11 report on Nikkei Asia.

In terms of export volume, Hong Kong's top three export partners are Taiwan, Vietnam and China, which jumped 61.7%, 55.9% and 29.5%, respectively.

Meanwhile, the biggest import volumes were from South Korea, Vietnam and the mainland, with respective growth of 86.2%, 81.4% and 35.5%.

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