G.F. 326
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(8)
(9)
Over 82% of the goods imported from China in the first half of 1988 were subsequently re-exported. Hong Kong's retained imports from China declined by 25% in the first half of 1988, resulting in a decline in China's share of Hong Kong's retained imports to 11.4%, compared with 17% in 1987. China managed to remain a distant second after Japan as a major source of Hong Kong's retained imports (paragraph 27).
Nevertheless,
The volume of financial transactions between Hong Kong and China continued to grow rapidly in the second quarter of 1988 (paragraph 29) and the important role of Hong Kong as a loan syndication centre for China continued (paragraphs 30 to 32).
(10) The latest statistics on foreign investment in China
indicate that Hong Kong remained the most important source of direct foreign investment in China (paragraph 36).
(11) While many China-interest companies have expressed an interest in having a listing on the Hong Kong's stock market, so far this has mainly been accomplished through acquiring shell companies or through the flotation of subsidiaries. It seems that the listing of China-interest enterprises directly under state control is much more difficult (paragraphs 33, 34 and
38).
(12) The future prospects for China's economic reforms
generally and for price reforms in particular seem to depend on how the broad outline plan on price/wage reforms put forward subsequent to the Beidaihe meetings is put into practice. Unless the problem of inflation develops into widespread social unrest,
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