Hong Kong Financial Round-Up July-August 1992
HK$236 billion in Exchange Fund
Financial Secretary Mr. Hamish Macleod has revealed Hong Kong's Exchange Fund for the first time, which stood at HK$236 billion (US$30.25 billion) at the end of 1991, after a 52- year silence on the fund's balance sheet. The accumulated earnings of the fund amounted to HK$99 billion (US$12.69 billion). The foreign reserve holdings are the 12th highest in the world. The Exchange Fund is separate from the Fiscal Reserves and the Land Fund.
HK Fiscal Reserves hit HK$99b
Hong Kong's fiscal reserves had reached an historical high of HK$99 billion (US$12.69 billion) by the end of March, according to the Government's final accounts for the 1991-92 financial year. A booming economy and delays in starting some of the works on the Chek Lap Kok airport plan within the financial year were the main reasons contributing to the higher-than-expected overall surplus of HK$22.5 billion (US$2.88 billion) in 1991-92. Much of the expenditure on the projects and land acquisition would be met in 1992-93.
More companies set up shop
The number of new companies registered in the past six months rose from 20,797 to 26,472, a 27 per cent increase over the same period last year. This brought the total number of companies at the end of June to 328,794. New overseas companies establishing a place of business in the territory numbered 254, an increase of 27 per cent over last year, bringing the total to 2,986 as of June 30, 1992. Existing companies increased their nominal capital by HK$21.75 billion (US$2.78 billion), a rise of 57 per cent over the same period last year.
Services sector leads GDP growth
Economic figures for the first quarter have shown that the export of Hong Kong services grew by 13.9 per cent, while the territory's GDP grew by 4.7 per cent in real terms, compared with the same quarter of 1991. Economic growth in the first quarter was boosted in part by private consumption, which climbed 8.7 per cent from a year earlier on strong purchases of durable goods.
Visitors up 18.7 pc
There were 3.3 million visitors to Hong Kong during the first half of the year, 18.7 per cent more than the 2.78 million in the same period in 1991, according to the Hong Kong Tourist Association (HKTA). Taiwan now accounts for 22.5 per cent of total visitors; Japan 20.1 per cent; Southeast Asia 17.8 per cent; Western Europe 13.1 per cent; and Canada and the United States 12.4 per cent.
May retail sales post 19 pc surge
The total value of retail sales in May surged 19 per cent to HK$12.6 billion (US$1.61 billion). Retail sales rose 13 per cent in volume terms in May compared with the same period last year. Comparing the first five months of this year with the same period in 1991, total retail sales rose 20 per cent in value and 13 per cent in volume.
6