CONFIDENTIAL #B

23

the transactions between the financial sectors in these

two economies were concerned, the position was roughly balanced either way. Hong Kong's financial institutions

had also a substantial amount of claims on China's

non-banking sector which increased by 9.5% during the first quarter of 1987 to HK$12.6 billion (US$1.6

billion). Their liabilities to China's non-banking sector

are believed to be negligible.

As at :

External liabilities and claims against China in respect of Hong Kong's financial institutions (banks and dtcs)

Liabilities to China's

banks (HK$Mn)

Claims

Claims

on China's

banks (HK$Mn)

on

non-

banking sector

(HK$Mn)

27 Mar 1986

21,612

25,097

9,518

30 Jun 1986

23,485

27,091

11,060

30 Sep 1986

24,365

30,607

9,827

31 Dec 1986

27,139

30,602

11,521

31 Mar 1987

34,474

34,822

12,621

CONFIDENTIAL #Z

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