Hong Kong
Analysts have identified Hong Kong, Vietnam, Malaysia and Singapore to be the most vulnerable countries to a U.K. trade slowdown.

Total exports during June in Hong Kong dropped for the 14th continuous month caused partly by a slowdown in China and factories perceiving a potential downfall in the coming months after the Brexit vote.

Analysts have said that trade-dependent country’s in Asia like Hong Kong are potentially left open to a slowdown in global trade as Britain leaves the European Union and as the effects are felt on factory supply chains.

Compared to a year ago, Hong Kong’s total exports fell by 1 percent in June to HK$296.5 billion ($38.2 billion), according to government data released on Tuesday. Total imports also dropped, losing 0.9 percent to HK$342.1 billion, the 17th month of declines.

During May annual exports slid slightly by 0.1 percent while imports dropped by a large margin of 4.3 percent.

At halfway through 2016, the total value of exports declined by 3.9 percent, with imports dropping a further 5.6 percent. The city’s trade deficit was reported at HK$199.6 billion during the first half of 2016, 10.8 percent of the value of imports.

The government said: “Looking ahead, the external trading environment remains challenging given the uncertainties associated with the outcome of the UK referendum in favor of leaving the EU, slow recovery in the advanced markets, monetary policy divergence among major central banks and heightened geopolitical tensions in various regions.”

Domestic exports in Hong Kong which were sent to the U.K. which contribute 2.2 percent of exports saw a significant drop of 48.2 percent during June.

If Europe is to see a slowdown, analysts have identified Hong Kong, Vietnam, Malaysia and Singapore to be the most vulnerable countries.

Credit Suisse did release a statement in June saying:

“We think the main channel through which Brexit could impact Asia will be via trade, with the UK likely to fall into a recession and euro zone economy slowing down.”

“Should the Brexit event result in a meaningful global growth slowdown, the economies which are most vulnerable will be the most export-oriented ones with limited policy space to respond to shocks. By these metrics, Hong Kong, Malaysia, and Vietnam look most exposed, while China, India, and Indonesia should be more resilient.”

Hang Seng Bank has changed its economic growth targets for Hong Kong and reduced them by 0.2 percent in 2016 from 1.5 percent to 1.3 percent due to uncertainty stimulated by Brexit.

Hong Kong did see a boost in imports from China in June as they rose 0.2 percent, whilst the total value of exports to the country increased by 1.8 percent.