1. 1 Chart 1 Gross Domestic Product -8 -6 -4 -2 0 2 4 6 8 Q1/ 96 Q2Q3Q4Q1/ 97 Q2Q3Q4Q1/ 98 Q2Q3Q4Q1/ 99 Q2 (%) Year-on-year change Quarter-on-quarter change, seasonally adjusted

2. 2 Chart 2 External Trade -25 -20 -15 -10 -5 0 5 10 15 20 1996199719981999 -35 -28 -21 -14 -7 0 7 14 21 28 Overall trade balance Imports of goods Exports of goods (% yoy) (HK$bn)

3. 3 Chart 3 Retail Sales (Seasonally Adjusted) -12 -8 -4 0 4 8 Q1/ 97Q2Q3Q4Q1/ 98Q2Q3Q4Q1/ 99Q2 (% qoq)

4. 4 Chart 4 Tourist Arrivals 600 800 1,000 1,200 96979899 ('000)

5. 5 Chart 5 Labour Market 0 1 2 3 4 5 6 7 96979899 (%, 3mma) 0 1 2 3 4 5 6 7 Unemployment rate (LHS) Employment growth (RHS) (%, yoy)

6. 6 Core Core excluding rent

7. 7 Chart 7 Hang Seng Index 7,000 9,000 11,000 13,000 15,000 17,000 96979899 (31/7/64=100)

8. 8 Chart 8 Residential Property Price Index 80 100 120 140 160 180 96979899 (1995=100)

9. 9 Chart 9 Interest Rates -10 0 10 20 30 40 50 979899 (%) 1-month HIBOR Differential between 1-month HIBOR and LIBOR

10. 10 Chart 10 Loans Delinquency Ratio of Local Banks 1 2 3 4 5 6 7 4Q971Q982Q983Q984Q981Q992Q99 (Ratio)

11. 11 Chart 11 Mortgage Loans Delinquency Ratio 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Jun-98Aug-98Oct-98Dec-98Feb-99Apr-99Jun-99 (Ratio)

12. 12 30 40 50 60 70 80 90 100 110 120 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 30 40 50 60 70 80 90 100 110 120 Hong Kong Indonesia Korea Malaysia Singapore Taiwan Thailand 1997 Q1-Q2 = 100 Chart 12 Nominal GDP Indices in US$ Terms 1997 1998 1999