G.F. 316
26.
in d
the
that
ز
t
+
t
1:
1
On ilu
OVCLM. ala investful.
fume, abri
substantially.
1984 The domei, dict
1967 /
1
Chama Capital
iongo tenn
and
This might be lutca to tre fact that in
of China become overheA further growth and development was constrained by bottlenecks in some key sectors like energy and
transport. In other words, the lack of suitable domestic investment opportunities in China may have driven Lunds abroad. But in view of China's huge trade deficits in the past twelve months and the consequent deterioration in its balance of payments account, tighter controls on capital outflows are likely. However, whether or not tighter controls are imposed would largely depend on the profitability of investing in liong Kong. 11 the economy of Hong Kong remains buoyant and Investment in Hong Kong earns high returns, China has no reason to reduce its investment here. Indeed, profits obtained from Hong Kong have always been a major source of 1oreign exchange carnings for China.
Summary and conclusions
27.
Following the measures adopted by the Chinese Government in recent months to cool down its overheated economy, the growth rates of some production sectors have slowed down somewhat in the third quarter as compared with those recorded in the first half of this year. But economic activities in China generally remained buoyant in the third quarter of 1985. The supply of some key industrial materials and power, and also the transport
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