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34.
In the manufacturing sector, it has been
reported that Everbright Enterprises Co. Ltd. is currently
planning to invest about HK$1 billion to set up a factory in Hong Kong to produce high tension transmission lines.
Summary and conclusions
35.
Following two quarters of modest growth, the Chinese economy showed signs of picking up in the third quarter of 1986. However, taking the first three quarters as a whole, the rate of increase in the value of
industrial output, at 6.4%, was still slightly below the
target for the year, of 7%. Nevertheless, it is generally
expected that the pace of growth will accelerate in the
fourth quarter, bringing the annual growth rate up to slightly over 7%.
36.
The Chinese authorities have acknowledged that
there are a number of unsatisfactory elements in the
current state of the Chinese economy. First, aggregate supply still falls short of aggregate demand. Second, notwithstanding the recent slowdown in the rate of
increase, the amount of capital construction being
undertaken is still considered excessive, taking into
account the limited availability of foreign exchange and
internal constraints in areas like the supply of basic
materials and supporting infrastructure.
Third, China's
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