Hong Kong's trading houses are taking a decisive advantage of the removal in US and EU textile quotas.
Hong Kong's apparel re-exports surged 58.30% in volume terms in February from the same month last year according to latest official data, after already rising 35.20% in January.
Re-exports of other products were generally curbed by the lunar year holidays that fell in January in 2004 and in February this year.
After strongly rising in January, Hong Kong's total re-exports therefore declined 4.5% in February, compared with the same month last year.
Re-exports of apparel more sharply increased in February than in January, however, as a clear sign that foreign demand is booming.
Although China's direct exports are also spectacularly rising, Hong Kong is able keeping a large share of the global apparel market.
Trading houses took advantage of the high level in quotas granted to Hong Kong in the past, compared with the low level of US and EU limits on direct apparel imports from China.
Re-exports to the United States were up 75% in February at US$444 million after surging 62% in January.
Re-exports to Canada were rapidly rising, with a 38% jump in January followed by a 153% surge in February to US$55 million.
The growth in shipments to EU's member states was also very strong in February. Re-exports to Germany, France and Italy increased by 65%, 120% and 114%, respectively.
Shipments to the UK rose 92% at US$184 million after increasing by 28% in January.
Prices continued declining at the same time. Average unit value of apparel re-exported to the US was down 7.66% in February compared with the previous month, after already falling more than 15% in January.
Unit prices of shipments to Germany further decreased by 5% in February following a decline of 17% in January.
Average value of items shipped to Netherlands and France was higher in February than in the previous month, however.
Hong Kong's domestic apparel exports fell 56% in volume terms at the same time, partly due to the lunar year holidays.
Exports already declined 30% in volume terms in January with a 26.80% fall over the first two months in value terms, compared with the same period of 2004.
Shipments to China fell 74% in February after only decreasing 14% in January. Shipments to foreign destinations in Europe and North America continued nearly disappearing.
Exports to the UK were down 79% in February while shipments to Germany were down 81%.
