Restocking Fears About Growth

As the accompanying chart shows, it is difficult to make the case that the Hong Kong economy is embarking on an economic recovery. To be sure, the island has registered two consecutive quarters of positive quarter-on-quarter growth, satisfying the technical definition of recovery. The local equity and housing markets also seem to be behaving as though the economy is roaring back. However, in our view, following the positive Q209 figures, the Q309 data appears to show little more than a huge inventory rebuild.

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