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BUSAAF (4)
centres.
bank.
Unlike most major economies, Hong Kong has no central
Those functions which might typically be performed by one
such as supervising financial institutions, managing official foreign exchange reserves or providing banking services are carried out by the note-issuing banks (the Hong Kong and Shanghai Banking Corporation and the Standard Chartered Bank).
11. At the end of 1988, there were 158 banks in Hong Kong licensed
under the Banking Ordinance, of which over a quarter were local
companies.
They maintained a total of 1,397 offices in Hong Kong. In addition there were 148 representative offices of foreign banks
and 75% of the top 100 banks in the world are now established in
Hong Kong.
12.
Kong.
Approximately 1/3 of China's total exports pass through Hong Hong Kong and China are now each other's largest trading partners. In 1988 total imports from China were valued at HK$ 155 billion (of which HK$ 95 billion were re-exported). Exports to
China totalled HK$ 38 billion. Chinese involvement in Hong Kong is
substantial. In 1987 China's 47 investments in Hong Kong's manufacturing industries were valued at HK$ 1.74 billion (third external investor after US and Japan, and ahead of the UK with HK$
1.5 billion).
13. Hong Kong, which is reported to be the most important source of external investment in China, has been steadily increasing its commercial interests and investment in the Pearl River delta area. It is estimated that Hong Kong businesses employ, either directly or indirectly, some 1.5 to 2 million Chinese workers in this area. This has, in effect, substantially expanded the production capacity of Hong Kong's manufacturing industry and made the economies of Hong Kong and South China more interdependent.
14. Contacts between Hong Kong and the Chinese were consequently becoming increasingly relaxed. They suffered an abrupt shock following Tiananmen Square. But business contacts have now picked up again in this area which has become of mounting importance to the present and future prosperity of Hong Kong. The June events in China caused a blow to confidence in Hong Kong which has led Hong