G.F. 326
43
AL TAX I
55.
(d) Summary
To summarise the present situation, the
relative share of total direct foreign investment
contributed by Hong Kong residents can be regarded as
of crucial importance for Shenzhen SEZ and this may
be so even for Guangdong Province generally.
However, the importance of Hong Kong's share in total
direct foreign investment declines when one comes to
consider China as a whole but is still significant.
Prospects for continued growth of Hong Kong's direct investment in China should be reasonably good provided that; first, the economy of Hong Kong
continues to prosper; and second, China's present pragmatic policy continues.
CONFIDENTIAL #B