MIRA
INFORM REPORT
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RATING
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STATUS
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PROPOSED CREDIT LINE
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<10
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C
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Absolute credit risk exists. Caution needed to be exercised
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Credit not
recommended
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Status :
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No Trace
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Payment Behaviour :
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--
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Litigation :
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--
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NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
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Country Name
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Previous Rating
(31.03.2011)
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Current Rating
(30.06.2012)
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Hong Kong
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A2
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A2
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Risk Category
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ECGC
Classification
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Insignificant
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A1
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Low
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A2
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Moderate
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B1
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High
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B2
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Very High
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C1
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Restricted
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C2
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Off-credit
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D
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HONG KONG - ECONOMIC
OVERVIEW
Hong
Kong has a free market
economy, highly dependent on international trade and finance - the value of
goods and services trade, including the sizable share of re-exports, is about
four times GDP. Hong Kong's open economy left
it exposed to the global economic slowdown that began in 2008. Although
increasing integration with China,
through trade, tourism, and financial links, helped it to make an initial
recovery more quickly than many observers anticipated, it again faces a
possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special
Administrative Region (SAR) as the site for Chinese renminbi
(RMB) internationalization. Hong Kong residents are allowed to establish
RMB-denominated savings accounts; RMB-denominated corporate and Chinese
government bonds have been issued in Hong Kong;
and RMB trade settlement is allowed. The territory far exceeded the RMB
conversion quota set by Beijing
for trade settlements in 2010 due to the growth of earnings from exports to the
mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59%
since the beginning of the year. The government is pursuing efforts to
introduce additional use of RMB in Hong Kong
financial markets and is seeking to expand the RMB quota. The mainland has long
been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong
Kong's natural resources are limited, and food and raw materials
must be imported. As a result of China's easing of travel
restrictions, the number of mainland tourists to the territory has surged from
4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other
countries combined. Hong Kong has also
established itself as the premier stock market for Chinese firms seeking to
list abroad. In 2011 mainland Chinese companies constituted about 43% of the
firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the
Exchange's market capitalization. During the past decade, as Hong
Kong's manufacturing industry moved to the mainland, its service
industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and
tight housing supply conditions caused Hong Kong
property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011.
Lower and middle income segments of the population are increasingly unable to
afford adequate housing. Hong Kong continues
to link its currency closely to the US dollar, maintaining an arrangement
established in 1983.
Source
: CIA
General observation
We found that the
subject company is not a Hong Kong-registered company. It is in facts a company
located in China
Note :
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Name, Address, Contact Details, Name of Contact Person or a copy of the Upper
Part of Letterhead within 15 days of receiving this report, a would be sent
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or its officials.
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