AI demand drives Hong Kong’s economy, highlighting high-value tech products

Driven by robust global demand for artificial intelligence-related products and Hong Kong’s strong export performance in the first eight months of 2026, the Hong Kong Trade Development Council (HKTDC) has raised its full-year export growth forecast to 42-47 percent, up from its previous projection of over 20 percent.

In the third quarter, the HKTDC Export Confidence Index recorded 51.8 for its current performance index and 51.3 for its expectation index, indicating that overall sentiment among Hong Kong exporters remains largely positive.

“The strong Hong Kong export growth recorded this year has been driven primarily by the rapid acceleration of global demand for AI-related products and infrastructure,” said Bruce Pang, the HKTDC’s director of research.

He added that demand for semiconductors, memory chips, computer components, and other advanced electronics expanded much faster than expected, providing substantial support for the city’s exports.

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Hong Kong’s trade structure is shifting from traditional lower-value bulk commodities toward high-value and technology-intensive products, such as integrated circuits, computer components, and advanced telecommunications facilities, according to HKTDC research.

In the first eight months of 2026, the value of total exports of goods rose 42.5 percent year-on-year to HK$4.75 trillion ($605.5 billion), according to data released by the Census and Statistics Department last week.

HKTDC research shows that electronics exports accounted for approximately 80 percent of Hong Kong’s total exports in the first eight months, growing 52.8 percent year-on-year — a growth rate significantly outpacing total exports.

The Chinese mainland is one of the main markets for Hong Kong’s electronics exports, according to the research. “The mainland’s high-tech manufacturing sector has remained in expansion territory, helping sustain demand for electronic components and related intermediate goods,” said Wing Chu, HKTDC’s deputy director of research.

“Hong Kong is increasingly handling products that are compact in size but exceptionally high in value,” Chu said. “This transformation highlights Hong Kong’s evolution from a traditional trading gateway into a high-value-added international trade and supply chain management center.”

Despite trading uncertainty brought by shifting United States trade policies, Hong Kong’s exports to the US surged 63.4 percent year-on-year in the first eight months, accounting for roughly 6.8 percent of the city’s total exports.

Contact the writers at akirawang@chinadailyhk.com