CONFIDENTIAL #
Report on Capital Investment in Hong Kong
- Second Quarter of 1989 -
Summary
The growth rate of investment in plant
and machinery eased in the second quarter of
1989, in the line with the moderation in overall
economic growth. As an indication, the
year-on-year growth rate in real terms of
retained imports of capital goods slowed to
about 7% in the second quarter of 1989 from 18%
in the first quarter. The corresponding
increase in 1988 was 17%. While the growth rate of retained imports of industrial machinery for
manufacturing use remained moderate in the
second quarter, that of retained imports of
other capital goods showed a marked deceleration.
2.
Investor confidence has been
undermined by the unrest in China in May and
June. In the past couple of months, many investors were adopting a wait-and-see attitude, with their expansion plans deferred and
commitments held back in the interim. However,
given the time lag between ordering and actual
delivery, the full effect on the level of investment in plant and machinery will only show up gradually in the retained imports figures in the latter part of the year.
C.F. 326
CONFIDENTIAL 機密。