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Australia's wine exports to Hong Kong surged in the first half of this year, contributing to the booming wine trade in Hong Kong

Total wine imports to Hong Kong rose 3 per cent to HK $4.19bn between January and June compared with the same period last year, with Australia a key driver of that growth, according to official data.

During the six-month period, Australian wine exports surged 34.59 per cent to HK $791.9 million compared with the same period last year. This growth has expanded its market share and now accounts for more than 20% of Hong Kong's imported wine market.

The increase comes amid recent signs of warming in frosty relations between China and Australia. With high Chinese tariffs disrupting A $1.2 billion worth of trade, many are optimistic about an imminent relief.

Some merchants were in the doldrums last year due to excess inventory, but imports are up this year on news that tariffs will soon be lifted.