HONG KONG FINANCIAL ROUND-UP November-December 1992
S&P places HK on credit watch
The Standard and Poor's Corp, a U.S. credit rating agency, has placed Hong Kong's long- term debt rating on credit watch. In response to the announcement, a Government spokesman said Hong Kong's economic fundamentals were strong and were not in any way undermined by S&P's decision. The spokesman said the decision only applied to long-term debt, not short-term debt, and it did not involve any immediate downgrading of Hong Kong's rating.
HK remains attractive for overseas investors
The total value of overseas investment in Hong Kong's manufacturing industry at the end of 1991 increased by 11 per cent to HK$34.4 billion (US$4.46 billion) as compared with the previous year. Japan continued to be the leading source of investment, accounting for 32 per cent of the total, followed by the U.S. with 28 per cent and China 11 per cent.
HK and Netherlands sign agreement on investment protection
Hong Kong and the Netherlands have signed a bilateral international agreement aimed at encouraging and protecting investments on a reciprocal basis in the two places. The agreement, which is the first of its kind and has the support of the Chinese Government, will remain in force after June 30, 1997.
US investment in HK stood at US$6.4 billion
Direct American investment in Hong Kong stood at US$6.4 billion in 1991, according to a report by the U.S. Department of Commerce. This made Hong Kong the top U.S. investment destination in the Asia-Pacific region (excludes Japan, Australia and New Zealand) with a 26 per cent share. The report says Hong Kong is a clear leader in finance and trade in terms of investment composition, but lags in manufacturing and petroleum.
Manufacturers' orders up 1%
The volume of orders-on-hand for the 200 largest manufacturers increased by 1 per cent in September this year over the same month last year. Orders in the fabricated metal products and the electrical and electronic products industries increased by 8 per cent and 7 per cent respectively. On the other hand, orders for the textiles and plastics products industries decreased by 7 per cent and 4 per cent respectively. On employment, the total number of people engaged by the 200 largest manufacturers decreased by 11 per cent in September when compared with the same month last year.
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