G.F. 326
UNTIIUENTIAL 11⁄2 1
12
-
16.
The rate of return to total assets for
non-financial establishments should be higher than
that for financial institutions because of the
difference in the nature of their operations but
7 1/2 times higher seems too much. If the rate of
return for non-financial establishments is assumed to
be 5%, i.e. about four times that for financial
institutions (1.2%), the estimated profits generated
by China's non-financial establishments in 1980 would
́be in the region of HK$1,688 million (about US$339
million). This together with profits generated by
China's financial institutions (HK$1,143 million or
US$230 million) would give a total profit of HK$2,831
million (US$569 million) in 1980. Assuming that profits of China controlled business increased at the
same rates as money GDP in 1981 (21.6%) and 1982 (14.5%), profits of China controlled businesses in
1981 and 1982 would have amounted to HK$3,442 million
(US$615 million) and HK$3,941 -million (US$649
million) respectively (Table 4).
CONFIDENTIAL #B