XN000022-1989-07-29 — Page 2

SATURDAY, JULY 29, 1989

FOREIGN INVESTORS HAVE FAITH IN HK

ARE MOST OF THE HONG KONG MANUFACTURERS

HOLDING IN ABEYANCE

EVENTS PLANS FOR FURTHER INVESTMENT IN CHINA AFTER THE RECENT

THERE, HAS MADE AND IT WAS FOUND THAT THIS CHANGE OF ECONOMIC CLIMATE

OVERSEAS KONG EVEN MORE ATTRACTIVE TO

ACCORDING TO DEPUTY DIRECTOR OF INDUSTRY, MR ANDREW K.P. LEUNG, TODAY (SATURDAY).

INVESTORS,

HONG

THE

BY

ORGANISED

PROVE HIS

GIVING A TALK AT A SEMINAR ON "HOW WOULD THE POLITICAL DISTURBANCES IN CHINA AFFECT THE ECONOMY IN HONG KONG"

то EXAMPLES THE VICTORIA JAYCEES, MR LEUNG CITED SAYING.

A FEW

"MULTI-NATIONAL COMPANIES SUCH AS MCDONNELL DOUGLAS AND HAYES MICROCOMPUTER PRODUCTS HAVE MOVED THEIR REGIONAL

FROM HEADQUARTERS, SHANGHAI AND SINGAPORE RESPECTIVELY, TO HONG KONG

TAKE ADVANTAGE OF THE GEOGRAPHICAL POSITION HERE.

DAIWA

ΤΟ

MULTI-MILLION-DOLLAR PROJECTS

NEC STEEL,

{NATIONAL WHILE AN AUSTRALIAN-OWNED JUST

ITS ANNOUNCED

"AS REGARD INWARD INVESTMENT, ATTRACTED TO HONG KONG RECENTLY INCLUDE ELECTRIC COMPANY) AND DAIDO CONCRETE, PRINTING COMPANY, MULTIFORM (HK) LTD, HAS EXPANSION," HE SAID.

MAJOR

BE A THEIR

MR LEUNG SAID HE BELIEVED HONG KONG COULD ALWAYS BENEFICIARY SHOULD MANUFACTURERS DECIDE TO DIVERSIFY INVESTMENTS TO OTHER ASIAN COUNTRIES FOLLOWING THE EVENTS IN CHINA.

IMPORTANCE TO THE ECONOMIC NEVERTHELESS, HE ATTACHED

LINKS RAPIDLY SINCE BETWEEN HONG KONG AND CHINA, WHICH HAD BEEN DEVELOPING 1979.

OF THE RECENT

MR LEUNG POINTED OUT THAT THE IMMEDIATE EFFECT EVENTS IN CHINA APPEARED TO BE MODERATE AS HONG KONG'S DIRECT INVESTMENT AND OUTWARD PROCESSING ARRANGEMENT WERE MAINLY IN GUANGDONG AREA WHICH SUFFERED ONLY MINOR DISRUPTION ΤΟ TRANSPORTATION AND TELECOMMUNICATION LINKS.

PREDICTED HE

THAT, IN THE LONG RUN, OUTWARD PROCESSING

ACTIVITIES IN CHINA WOULD CONTINUE TO GROW.

CONTINUE ΤΟ FUNCTION AS

OPERATIONS "PROVIDED MANUFACTURING NORMAL IN THE PEARL RIVER DELTA REGION, HONG KONG MANUFACTURERS WILL NOT

UP THE CONSIDERABLE GIVE

COST

OF THE OUTWARD

PROCESSING ARRANGEMENTS THERE, HE SAID.

ADVANTAGES

"LOCAL MANUFACTURERS

ARE LIKELY TO FIND

THE THAT

IN RELATIONSHIP

PRODUCTION AND MARKETING BETWEEN HONG GUANGDONG CANNOT BE EASILY TRANSPLANTED ELSEWHERE.

KONG

CLOSE AND

"HONG KONG ITSELF COULD BE A BENEFICIARY RELOCATION OF MANUFACTURING OPERATIONS FROM HIGHER VALUE-ADDED GOODS," HE ADDED.

CHINA,

OF ANY IMMEDIATE PARTICULARLY FOR

/MR LEUNG