GF 323
CONFIDENTIAL
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機密
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trade balance with resources being shifted to the
domestic sector from the external sector and more
imports being allowed in to provide some relief to
the pressures arising from the excess of demand over
supply (paragraph 45).
In an attempt to contain inflation, the Chinese
monetary authorities have made efforts to curb the
runaway growth of loans and money supply
(paragraphs 15 to 21). But currency in circulation.
continued to grow rapidly during the third quarter (paragraph 19).
With a growth rate in real terms of 33.1% in the
first three quarters of 1988, Guangdong was the fastest growing province in term of gross industrial output. The US$ value of Guangdong's exports also grew rapidly, by 47.7%, during the same period
(paragraph 26).
But the problem of over-heating has
also become more serious with the rate of inflation
approaching 25% (paragraph 27).
Hong Kong's domestic exports and re-exports to China continued to grow rapidly in the first three quarters of 1988. A large proportion of this growth was related to the strong growth of domestic consumption in China. Outward processing activities may have grown more slowly in 1988, given the slow down in the growth rate of Hong Kong's domestic exports to its overseas markets (paragraphs 31 and 32).
Over 84% of the goods imported from China in the first three quarters of 1988 were subsequently re-exported. Hong Kong's retained imports from China declined by 27% in the first three quarters of 1988, resulting in a decline in China's share of Hong
CONFIDENTIAL #*
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