Illegal cash flows into Hong Kong from China, as a result of excessive or falsified mainland export invoices, has culminated in US $155 billion over the course of March 2012 through 2013.
The South China Morning Post reports that confirming prior research group speculation about Chinese over-invoicing of exports has allowed about US $101 billion in 2012 alone to illegally enter Hong Kong. Many analysts raised red flags about the unpredictably high growth rate of 93% of Chinese exports to Hong Kong in 2013 compared to the previous year, especially in the context of a consistent global 10% downtown in recorded exports.
No word yet on whether President Xi Jinping’s 2014 New Year address to the nation and emphasis on reform, includes cleaning-up illegal Hong Kong-Chinese cash flows. Also no word yet on whether the same Hong Kong citizens who created and supported the 2012 “mainland Chinese as locusts” advertisement, will be releasing a Part II to the much beloved Apple Daily advertisement.
By Sophia Solvio
[Image via justaslice]