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The official emigration forecast for 1991 is 60,000, compared with estimate of 62,000 for 1990. The govern cat predicts that 430,000 will leave Hong Kong during 1989-96 for emigration and overseas studies. However, many former migrants have returned to Hong Kong in recent months.
- Hong Kong's prime lending rate was lowered from 9 to 8.5% on 4 November 1991.
Hong Kong's stock market became active after the Gulf war, the Hang Seng Index fluctuated around 4,100-4,300 in recent weeks.
Property market became very dynamic during Mar-Sep 1991 as prices for residential property have risen by about 50%. The market for office premises also revived, albeit at a slower pace.
By end-November 1991, there were 164 licensed banks in Hong Kong, of which 134 were incorporated overseas. Additionally, there were 52 restricted licensed banks and 160 deposit-taking companies.
Hong Kong was the world's second busiest container port after Singapore in 1990, with total throughput growing by 14% to 5.1 million TEUS.
In 1990, tourist arrivals rose by 11% to a record of 5.9 million, mainly due to more visitors from Taiwan, and Southeast Asia. In Jan-Oct 1991, tourist arrivals increased slightly by 0.3%.
As of March 1990, 3,195 overseas companies were known to be operating in Hong Kong, of which 572 served as regional headquarters. According to a government survey, the number of such regional headquarters set up in Hong Kong has continued to increase in 1989 and 1990.
According to some rough estimates, direct foreign investment in Hong Kong has continued to rise in recent years, probably exceeding US$30 billion by end-1989, covering all sectors. Major investors were China (US$10 billion), Japan (US$8 billion)* and the U.S. (US$7 billion).
Major foreign companies which invested (or expanded their current investment) in Hong Kong recently include Yaohan, Seibu, Motorola, Sogo, NEC, Daiwa Steel, 3M, General Motors, Suntory, AT&T, Arco and Cabot Plastics. Accumulated overseas investment in the manufacturing sector totalled US$4.0 billion by end-1990, up 4% from previous year. Major sources of investment included Japan (32% of total), the U.S. (31%), Mainland China (11%), and the U.K. (7%). Investments were mainly in electronics, electrical products, textiles and garment, chemicals, and watches.
Many development projects have continued in Hong Kong and the Government has started to build a new international airport at Chek Lap Kok. These together with an expansion of the container port and associated road links involve a total expenditure of HK$127 billion (US$16.3 bn), and the cost of the airport and related projects (excluding the port) is around HK$98.6 bn (US$12.6 bn). The government's spending on the core projects is expected to reach HK$37.3 bn (US$4.8 bn) in the next five years as more than 130 airport-related contracts will be awarded. The airport project was endorsed by the Chinese government on 4 July 1991, with the undertaking by Britain that fiscal reserves of not less than HK$25 bn (US$3.2 bn) will be kept for the future HKSAR Government on 30 June 1997. An Airport Committee with equal members from Britain and China was formed under the Sino-British Joint Liaison Group to oversee the implementation and financing of the airport project. Ten core projects, including the first runway, the airport, railway, the Lantau Fixed Crossing, etc., are to be completed before mid-1997.
Political_Background
In accordance with the Sino-British Joint Declaration, the basic policies of the People's Republic of China (PRC) regarding the future Hong Kong Special Administrative Region (SAR) after 1997 have been stipulated in a Basic Law by the National People's Congress (NPC) of the PRC; under the formula of one country-two systems, Hong Kong's free enterprise system will remain unchanged for 50 years.
In accordance with the Joint Declaration, a Sino-British Joint Liaison Group (JLG) was set up to facilitate the smooth transfer of government in 1997 and the effective implementation of the Joint Declaration. Achievements of JLG include the enhancement of Hong Kong's independent participation in international organizations and agreements such as GATT, Customs Cooperation Council, UN Conference on Trade and Development, Universal Postal Union, International Labour Organization, the IMF, etc.
A Land Commission was formed by the Chinese and British governments. Among others, this Commission oversees the sharing of premium income from land transactions before 1997 between the H.K. Government and the future SAR Government. By June 1991, a fund of HK$23.4 bn. (US$3.0 bn.) has been credited to SAR's account.
* Japan's accumulative investments in Hong Kong of all kinds were US$9.85 billion at end March 1991. More
up-to-date figures for other investor countries are not available.
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