(July 28): Hong Kong’s exports surged by the most in more than four decades to hit a record in June, fuelled by strong demand from the global boom in artificial intelligence.

The city’s outbound shipments last month soared by 53.4% from a year earlier, the largest increase since 1984, according to data released by the Census and Statistics Department on Monday. That brought the value of exports to a record high of HK$641.1 billion (RM855.5 billion).

The gain exceeded all estimates in a Bloomberg survey of economists and followed a 40.8% expansion in May. Much of that spike was driven by demand for electronic products fuelled by the global buildout of AI infrastructure, with exports of electrical machinery and parts, data processing machines, and telecommunications equipment leading the increase, according to government data.

“Looking ahead, the robust demand for AI-related electronic products globally should render continued support to Hong Kong’s merchandise trade performance,” a government spokesperson said in a statement. “Yet, the recent re-escalation of geopolitical tensions in the Middle East deserves attention.”

Almost all of Hong Kong’s trade is driven by re-exports. The city produces little AI hardware itself but has become a vital conduit for high-tech goods moving in and out of China, emerging as a key node in the booming AI trade across Asia.

In June, Hong Kong’s exports to Singapore jumped by 83%, followed by 80% to Taiwan and 59% to mainland China. Outside Asia, shipments to the US rose by 114%.

The Hong Kong Trade Development Council expects new US tariffs to have a limited impact on Hong Kong. Last week, the Trump administration imposed new tariffs of 12.5% on China, including Hong Kong, citing what it said were inadequate efforts to address forced labour. The new rates replace global duties of 10% that expired on July 24.

“While the tariff increase will affect Hong Kong’s exports to the US, it is worth noting that various exemptions remain in place, including for certain electronic products, which account for the majority of Hong Kong’s exports to the nation,” the council said in a press release.

Hong Kong’s imports, meanwhile, rose by 45.4% year-on-year in June, the strongest growth since 1992. Inbound shipments from South Korea surged by 177%, logging a fifth month of three-digit increases.

“On the whole, Hong Kong’s merchandise exports could see moderating growth momentum in the coming months, amid a likely gradual steadying of the technology upcycle, an easing global economy, as well as the high-base effect from last year,” said Bruce Pang, director of research at the Hong Kong Trade Development Council.

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