Resilient domestic demand keeps HK trade from crashing

Positive wage growth also had a hand in keeping trade at levels still "comfortably above" the 2008 crisis, says HSBC.

Hong Kong trade slid in June as total exports and imports of goods both recorded year-on-year decreases, at 4.8% and 2.9% respectively, according to official government data.

"The impact of slowing demand from Europe and China continues to hamper the Hong Kong's economy bid to make a full scale recovery, especially where trade is concerned. Nevertheless activity levels continue to hold up, comfortably above where they fell to during the last downturn of 2008-09, largely due to the resilience of domestic demand and positive wage growth, boding well for the overall strength of the economy," said Donna Kwok, Greater China Economist, HSBC Global Research.