Mainland-HK invoices further diverge, suggesting fake invoices

For every US$1 of imports Hong Kong registered in September China recorded US$1.56, resulting in a US$1.35 billion divergence and suggesting fake export invoicing had inflated mainland trade data, Bloomberg reported, citing government data it had compiled. Hong Kong’s imports from China climbed 5.5% from a year earlier to US$24.1 billion, figures showed Monday; China’s exports to Hong Kong surged 34% to US$37.6 billion according to mainland data on October 13. While China’s government has strict rules on importing capital, those seeking to exploit yuan appreciation can evade the limit by disguising money inflows as payment for goods exported to foreign countries or territories, especially Hong Kong.