'The growth in Hong Kong exports was supported by the 6.2 pct rise in re-exports in June, which in turn, is linked to our trade with China. Re-exports continue to draw support from the mainland, although there are indications now that our share of that trade could be narrowing,' HKGCC economist Ruby Zhu said.

A sizeable portion of Hong Kong's re-exports are goods coming from China, she noted.

She said the 6.2 pct growth in re-exports is an 'acceptable figure for June'.

'Trade with China remains the major growth driver for re-exports and is sustaining Hong Kong's role as a major logistics and trade hub in the region,' she noted.

'But Hong Kong competes with other cities too for China's trade that's why we see less and less of the double digit growth in re-exports. It can happen that other cities will eventually catch up. Hong Kong is expensive and traders may want to use other ports that offer cheaper rates. However, our flawless service gives us edge and should support Hong Kong's role as a major trading hub,' she said.

The government announced today that exports in June rose 6.7 pct to 202.2 bln hkd from a year earlier, after slipping 0.1 pct year-on-year in May.

Re-exports in June rose 6.2 pct to 190.4 bln hkd, while domestic exports rose 16.5 pct to 11.8 bln hkd.

The government said imports in June expanded 9.9 pct from a year earlier to 216.0 bln hkd. The visible trade deficit in June was 13.8 bln hkd, equivalent to 6.4 pct of the value of imports in the period.

Zhu said re-exports will remain strong as long as China's trade remains robust.

'I expect Hong Kong's re-exports to remain strong in the coming months, thanks to China,' she said, adding that she expects single-digit growth in the coming months.

(1 usd = 7.8 hkd)