- 20 -
3.8
Machinery and equipment (53%) accounted for over half of the stock of fixed assets, while land and buildings (35%) were also important. Gross additions to fixed assets were mainly of machinery and equipment (53%),
though acquisition
of land and buildings (32%) also accounted for a significant proportion of the total. (Table 15)
3.9
3.10
3.11
3.12
3.13
3.14
China
The third largest
industries was made (at original cost)
investment in Hong Kong's manufacturing by China. The value of its total investment was $3,178 million, its stock of fixed assets (at original cost) $2,655 million, and its gross additions to fixed assets $317 million. (Table 16)
Chinese investment has a comparatively short history, and only reached significant proportions in the 1980s. The survey only
recorded and 1979.
5
investments before 1970 and 2 investments between 1975 Between 1980 and 1984, 2 investments a year were made on average and since 1985 6 a year. In 1989, 49 investments were of these, 37 (76%) were joint-ventures, in contrast to American and Japanese investments, which were mostly wholly-owned. There were only 12 investments wholly-owned by Chinese interests. (Table 17)
identified.
areas.
Chinese investments were spread across a number of industries, with transport equipment and chemical products the most important Investment in these two industries, accounted for 48% of total investment, 54% of the stock of fixed assets and 27% of
additions to gross
fixed assets. Other industries with substantial investments were tobacco, electronics, and textiles and clothing. (Table 16)
Land and buildings accounted for 58% and machinery and equipment for 26% of the stock of fixed assets. Gross additions to fixed assets were mainly land and buildings (46%). (Table 18)
The United Kingdom
The United Kingdom had the fourth largest investment in Hong
manufacturing industries. Kong's
The value of its total investment (at original cost) was $2,200 million, its stock of fixed assets (at original cost) $1,
$1,416 million, and its gross additions to fixed assets $288 million. (Table 19)
The
British investment in Hong Kong's manufacturing industries has a long history, and has grown at a steady pace in recent years.
shows survey
that between 1970 and 1979, an average of 2 new
investments
1980 to 1989,
investments
In average.
a
a
year
year
were
had
made.
been
From
on made
3 new 1989, 61
investments were identified, of which 26 (43%) were wholly-owned interests, 7 (12%) were joint-ventures without a local
with (46%) joint-ventures
local interest.
by British
interest,
and 28
(Table 20)
a