been maintained since October 1983. Bank notes are issues
by the two note-issuing banks (the Hong Kong and Shanghai Banking Corporation and the Standard Chartered Bank).
13. At the end of 1989, there were 165 banks in Hong Kong licensed under the Banking Ordinance, of which 31 were
locally incorporated. Banks from 27 countries have branches
in Hong Kong and 75% of the top 100 banks in the world are
now established there.
Relations with China
14.
Approximately 1/3 of China's exports pass through Hong Kong. Hong Kong and China are now each other's largest
trading partners. In 1989 total imports from China were
valued at HK$ 197 billion (of which HK$188 billion were
re-exported). Total exports to China were HK$146.8 billion,
of which HK$104 billion were re-exports. Chinese
involvement in Hong Kong is substantial. In 1987 China's 47 investments in Hong Kong's manufacturing industries were valued at HK$ 1.74 billion (third external investor after US and Japan, and ahead of the UK with HK$ 1.5 billion).
15. During the 1980s, and particularly following the signing of the Joint Declaration, economic and commercial contacts between Hong Kong and China increased dramatically. There was a substantal growth in two way trade and investment and in entrepôt trade. These trends had begun to slow down by the end of 1988, in parallel with the introduction of anti-inflationary policies in China. The events of June 1989 in China had a further negative impact on the economic relationship between Hong Kong and China. However, trade and investment are now again picking up.
BATAEM/5