investments since this is the basis companies use in their
accounts. The methods used in the UK to compile direct
investment statistics follow the internationally accepted
guidelines as set out by the International Monetary Fund and
updated by the OECD in its Benchmark Definition of Direct
Investment.
ii the book value of direct investment covers only the net
assets attributable to the parent company. The overseas
subsidiaries, branches and associates may raise funds from
other souces such as local borrowing or from other
shareholders and use these to acquire other assets. The
figures do not cover assets managed but not owned by UK
companies.
iii
Overseas direct investments are often held through
intermediate overseas holding companies. Where, in response
the companies do not provide full details
of both the intermediate and the final country of
to the survey,
investment
there may be some misallocation of direct
investment between countries.
5. I am unable to comment on the figures for particular companies
because of the rules which prevent the disclosure of information
supplied in confidence in response statistical inquiries such as
the Census of Overseas Assets. However the determination of
direct links is not straightforward. For example, according to
public records, Matheson & Co Ltd is owned by a Hong Kong
company, Jardine Matheson Holdings Ltd which in turn has a
Bermuda based company of the same name as ultimate parent.
6. Of course direct investment is only one aspect of UK assets
in Hong Kong. Despite the deficiency in
statistics on the other