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MONDAY, DECEMBER 1, 1986
DR MCLEAN NOTED THAT WHILE THERE HAD ALMOST CERTAINLY BEEN SOME ADJUSTMENT IN THE INVESTMENT PORTFOLIOS OF HONG KONG RESIDENTS INTO OVERSEAS ASSETS AS A FORM OF INSURANCE AGAINST UNCERTAINTY ABOUT THE FUTURE, THERE WAS EVIDENCE THAT SOME, PERHAPS MOST, OF THE OUTFLOW HAD BEEN MOTIVATED BY NARROWER COMMERCIAL OR FINANCIAL CONSIDERATIONS.
+ IN THE MONEY MARKET, FOR EXAMPLE, DESPITE THE LINKED EXCHANGE RATE, FOR ABOUT TWO YEARS THE INTEREST RETURN AVAILABLE ON HONG KONG DOLLARS HAS BEEN FAIRLY CONSISTENTLY BELOW THAT FOR U.S. DOLLARS, PROVIDING INVESTORS WITH A FINANCIAL INCENTIVE TO SHIFT INTO U.S. DOLLARS. SUCH AN INCENTIVE WOULD BE UNNECESSARY IF THE OUTFLOW WAS MOTIVATED PRIMARILY BY LACK OF CONFIDENCE.+
LOOKING AT THE ISSUE FROM A BROADER PERSPECTIVE, DR MCLEAN FOUND IT HARD TO RECONCILE THE WILLINGNESS OF INVESTORS, PARTICULARLY THOSE IN MANUFACTURING, TO INVEST IN PLANT AND MACHINERY FOR USE IN HONG KONG WITH THE VIEW THAT CAPITAL IS BEING MOVED OUT OF HONG KONG BECAUSE OF A LACK OF CONFIDENCE. IN HONG KONG'S ECONOMIC FUTURE.
+IN SHORT, SOME OF THE OUTFLOW MAY HAVE AN ELEMENT OF INSURANCE AGAINST UNCERTAINTY BUT OTHER MOTIVES ARE ALSO APPARENT. FURTHER ANY UNCERTAINTY THAT EXISTS IS NOT PREVENTING SIGNIFICANT INVESTMENT IN LONG TERM PHYSICAL ASSETS BEING UNDERTAKEN 'IN HONG KONG.
ADJUSTMENTS
+AT PRESENT, THE HONG KONG ECONOMY IS DOING WELL. ARE TAKING PLACE WHICH REFLECT BOTH THE EFFECT OF THE JOINT DECLARATION AND CHANGES IN THE WORLD AT LARGE BUT, FOR THE MOMENT AT LEAST, THE PROSPECTS ARE GOOD, DR MCLEAN SAID.
PRESENTATION OF ENGLISH LAW BOOKS
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THE BRITISH AMBASSADOR TO PEKING, SIR RICHARD EVANS, TODAY (MONDAY) PRESENTED A SET OF ENGLISH LAW BOOKS TO THE PRESIDENT OF THE CHINA LAW SOCIETY, MR WANG ZHONGFANG, AT A CEREMONY HELD IN HIS RESIDENCE.
THE BOOKS, PRESENTED UNDER THE HEADS OF MISSION GIFT SCHEME, INCLUDE A FULL SET OF ALL ENGLAND LAW REPORTS, AND A SET OF HALSBURY'S LAWS OF ENGLAND.
/AT THE