Manufacturers said on Tuesday that they plan to diversify their markets to counter a more than year-long drop in trade. This came after import and export figures for May recorded the most significant declines in four months.

Official data released on Tuesday showed that Hong Kong's exports last month fell 15.6 percent year-on-year, while imports dropped 16.7 percent.

The SAR's exports were down for a 13th consecutive month. For the first five months of this year, the total value of shipments declined by 16.3 percent over the same period in 2022.

A government spokesman attributed the declines in trade to the weak external environment.

"Looking ahead, the weakness in the advanced economies will continue to pose challenges to Hong Kong's exports, though the faster growth of the Mainland economy should provide some offset," the spokesman said in a statement.

Allen Shi, president of the Chinese Manufacturers' Association of Hong Kong (CMA), said he hoped the mainland market can make up for a portion of the order quantity affected by the geopolitical situation with Europe and America.

"Hopefully, we can gradually move away from solely relying on business from the US and Europe," he said.

But Shi said businesses would need time to explore what products fit the mainland market.

"The market in Mainland China is different from the markets in Europe and America. In the Mainland China market, it is necessary to compete on price. Having a low price is key to enter the market," he added.

Ralph Chow, the chief executive of the CMA, said manufacturers are also eyeing other markets.

"I'm sure that the Hong Kong manufacturers are adaptable enough because they are now exploring new markets, for example the Southeast Asian market and also the Middle East market," he said.