G.F. 326

CONFIDENTIAL ##

Report on Capital Investment in Hong Kong

First Quarter of 1987

Introduction

This is the third quarterly report

providing an assessment of capital investment in

Hong Kong based on data available up to the end of

the first quarter of 1987. It focuses on investment in plant and machinery and in property. Most of the information in this report was supplied by the Census and Statistics Department, the Rating

and Valuation Department, the Buildings Ordinance

Office and the Industry Department.

2.

For capital investment generally,

statistics on gross domestic fixed capital

formation are produced regularly (annually for

publication, quarterly for internal reference only)

as part of the gross domestic product (GDP)

estimates (with breakdowns for plant and machinery

and for building and construction, in respect of both the public and the private sectors). In

respect of investment in plant and machinery, more

up-to-date indicators are available from the

statistics on retained imports of capital goods.

There are no separate data on re-investment, on

depreciation or on the scrapping of existing

capital. The information is therefore confined to

capital investment in gross terms. In respect of investment in property, more up-to-date indicators

are available from the statistics on building

completions and on consents to commence work.

3.

Investment in plant and machinery revived in the third quarter of 1986 and the growth

CONFIDENTIAL # 3

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