IV

China's foreign exchange loss if the Hong Kong dollar ceases to be a convertible currency

V

VI

T

-

32

34

(a)

Extent of direct losses

29

(b)

Possibilities for

33

-

recouping losses

elsewhere

(c)

Summary

35

Hong Kong as a financial centre

(a) China's policy stance

towards internatonal finance

(b)

Transactions between

financial institutions in Hong Kong and China

36 37

38

-

42

(c)

China's stake in Hong Kong's financial sector

43 - 45

(a)

Summary

46

Hong Kong as a source of direct investment in China

(a)

Background

47

Hay

48

(b)

Hong Kong's direct

49

52

investment in China

(c)

Future possibilities

53

-

54

(d) Summary

55

G.F. 326

CONFIDENTIAL #B

Page 30Page 31

VII

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