CONFIDENTIAL #≈
7
9.
Within this broad group of retained
imports, the growth rates of different
categories of capital goods. varied substantially in the second quarter of 1989. While retained imports of construction machinery and of transport equipment showed substantial growth in value terms, declines were recorded for all. other categories of imported capital goods. The largest decline was recorded for scientific and optical instruments and apparatus, followed by electrical line telephone apparatus (Table 3).
Investment in property
(all growth rates quoted in this section are on a year-on-year basis and are expressed in real terms, unless otherwise indicated).
10.
(a) General situation
Trading activity in the property market remained buoyant up to April 1989. However, property analysts generally anticipated that the market would consolidate in the near
future, given the rapid increases in property prices and rentals over the past year and the successive rises in interest rates in February
and March. Some stabilization was apparent in
May. The crackdown in Beijing on 4 June had
hastened and exacerbated the adjustment. Property prices were reported to have fallen by an average of 15-20% by the end of the month. Purchasers, investors and developers were generally adopting a wait-and-see attitude,
壹
CONFIDENTIAL #2