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capital
inclined to impose drastic restraint measures. While the
People's Bank of China will no doubt exercise closer scrutiny over the allocation of credit, probably only those projects of a lesser desirability will be put under a tighter rein. So long as China's economy continues to grow at a rapid pace and Guangdong's economy maintains its particular dynamism, the growth impetus on the Hong Kong economy will remain strong.
40.
Despite the rising inflation in China, the
year-on-year rate of increase in the retail prices of goods imported from China slowed down during the course of 1992 (23)
This was conceivably due to the fact that the
prices of these imports were mostly set in Hong Kong
dollars and hence should have been dampened somewhat by the
recent sharp depreciation of the Renminbi. There was
•
therefore a
moderating effect on the rate of inflation in Hong Kong. However, given the declining share of Chinese goods in Hong Kong's retained imports in recent years, this
price stabilisation effect had tended to be less.
(23) Year-on-year rate of increase (%) in:
Retail price index
of goods
imported from China
CPI(A)
All
consumer
All
consumer
goods
Foodstuffs
goods
Foodstuffs
1991
6.0
6.6
12.0
11.4
1992
6.0
6.9
9.
4
8.8
1992 Q1
8.5
10.5
10.1
11.1
Q2
7.5
8.9
9.0
9.5
Q3
4.5
4.9
9.0
7.6
Q4
3.8
3.6
9.4
7.2
Economic Analysis Division
Financial Services Branch
Government Secretariat 28 April 1993
CONFIDENTIAL
機密