G.F. 326
CONFIDENTIAL #3
Report on Capital Investment in Hong Kong
First Quarter of 1990
Summary
Investment in plant and machinery remained
sluggish in the first quarter of 1990. Retained
imports of capital goods increased by about 3% in real
terms in the first quarter of 1990. over the same
quarter last year. The increase was due mainly to the
import of two aircrafts.
Excluding this item, there
was a decrease of about 11% in real terms. Over the
same period, retained imports of industrial machinery
for manufacturing use declined by about 15% in real
terms. The weak domestic export performance, the
slow-down in overall economic activity and the
situation in China all tended to affect investment
sentiment adversely.
2.
The property market became relatively less
active in the first quarter of 1990. Having revived
considably since late July last year, a degree of
consolidation can be expected. While, the demand for
small to medium-sized residential flats was sustained,
demand as well as prices and rentals for other types
of property soften during the first quarter.
CONFIDENTIAL ##