CONFIDENTIAL B
3 -
(9)
Hong Kong overtook Japan to become China's largest trading partner in the first half of 1987, accounting
for about 35% of its total exports and 19% of its
total imports (paragraph 30). However, more
information is needed to confirm this position.
(10) Financial links between Hong Kong and China have
increased further. Apart from the traditional
borrowing activities, China-related organisations are showing greater interest in tapping funds through Hong Kong's capital market (paragraphs 33 to 35).
(11) Hong Kong figured prominently as the major
contributor of direct foreign investment in China in
the first half of 1987. At the same time,
China-related companies have continued to expand and
diversify their activities in Hong Kong (paragraphs
36 to 39).
G.F. 326
CONFIDENTIAL #