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CHAPTER 3 LEADING INVESTORS' INTEREST
3.1
3.2
3.3
3.4
The United States of America
The United States of America was the most important overseas investor in Hong Kong's manufacturing industries. The value of its total investment (at original cost) was $9,290 million, its stock of fixed assets (at original cost) $4,590 million, and its gross additions to fixed assets $984 million. (Table 10)
American investment in Hong Kong's manufacturing industries was first recorded in 1950. Between 1970 and 1979 an average of 6 new investments were made each year.
In the 1980s, American investment began to grow at a significant rate. The average number of new investments increased to 9 between 1980 and 1989. In 1989, 147 investments were identified, of which 90 (61%) were wholly-owned by American interests, 14 (10%) were joint-ventures without а local interest and 43 (29%) joint-ventures with a local interest. (Table 11)
The electronics industry was the sector in which the greatest investment had been made, 51% of total investment, 43% of the stock of fixed assets and 33% of gross additions to fixed assets. Other industries with substantial investments were electrical products, chemical products, and textiles and clothing. (Table 10)
Over half the stock of fixed assets was accounted for by investments in machinery and equipment (53%), followed by land and buildings (30%). Gross additions to fixed assets mainly consisted of machinery and equipment (59%). (Table 12)
3.5
3.6
3.7
Japan
After the investment
United States of America, Japan had the second largest in Hong Kong's manufacturing industries. The value of its total investment (at
original cost) was $8,642 million, its stock of fixed assets (at original cost) $4,979 million, and its gross additions to fixed assets $625 million. (Table 13)
in
The first Japanese investment in Hong Kong identified in the survey were recorded in 1960. Between 1970 and 1979, an average of 8 new investments were made each year and the trend continued 1980 to 1984. Since 1985 the average number of new investments each year has risen significantly to 14. In 1989, 180 Japanese investments were identified, of which 100 (56%) were wholly-owned by Japanese interests, 9 (5%) were joint-ventures without a local interest and 71 (39%) joint-ventures with a local interest. (Table 14)
The industries which attracted the most Japanese investment were electronics, electrical products, printing and publishing, and watches and clocks, accounting for 67% of total investment, 62% of the stock of fixed assets and 64% of gross additions to fixed assets. (Table 13)