XN000022-1990-05-23 — Page 16

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WEDNESDAY, MAY 23, 1990

ON THE LATEST ECONOMIC SITUATION IN HONG KONG, MRS CHAN SAID THAT CURRENTLY THE ECONOMY HAD SLOWED AND A LOWER GROWTH OF THREE PER CENT IN REAL TERMS FOR 1990 WAS FORECAST.

"THIS SHOULD ALLOW OUR OVERHEATED ECONOMY TO COOL AND EASE PRESSURES ON PRICES AND WAGES," SHE SAID.

THE CONTINUED HIGH LEVEL OF FOREIGN INVESTMENT IN HONG KONG INDICATED THAT FOREIGN INVESTORS APPRECIATED THE FUNDAMENTAL STRENGTH OF HONG KONG'S ECONOMY AND THE MANY OPPORTUNITIES THAT HONG KONG WOULD CONTINUE TO OFFER.

"OUR STOCK MARKET IS NOW 40 PER CENT UP FROM THE LEVEL PREVAILING IN JUNE 1989. DEMAND FOR RESIDENTIAL PROPERTIES REMAINS STRONG AND RECENT GOVERNMENT LAND SALES HAVE FETCHED PRICES ABOVE EXPECTATION," SHE SAID.

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HAD SEEN NEW FOREIGN INVESTMENTS PARTICULARLY FROM THE AND JAPAN AND MORE OVERSEAS BANKS WERE APPLYING TO COME TO HONG SHE NOTED.

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KONG,

SHE POINTED OUT THAT APART FROM BEING A SIGNIFICANT PRODUCER OF LIGHT MANUFACTURED GOODS, HONG KONG WAS ALSO AN IMPORTANT FINANCIAL AND SERVICE CENTRE IN SOUTH EAST ASIA.

"SERVICES ACCOUNT FOR ABOUT 75 PER CENT OF OUR GROSS DOMESTIC PRODUCT AND RE-EXPORTS ARE NOW LARGER IN VALUE THAN OUR DOMESTIC EXPORTS, SHE ADDED.

HONG KONG ENTREPRENEURS WERE QUICK TO SEIZE THE OPPORTUNITIES MOVE UP MARKET AND INTO AREAS OF HIGHER TECHNOLOGY OR INDEED TO DIVERSIFY ABROAD, MRS CHAN NOTED.

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MRS CHAN SAID THAT 1997 MARKED A POLITICAL EVENT BUT ECONOMICALLY HONG KONG WOULD CONTINUE TO PLAY ITS ROLE AS A VIBRANT TRADING, FINANCIAL AND SERVICES CENTRE IN THE FAST GROWING ASIA PACIFIC RIM REGION, WITH A FIRST CLASS INFRASTRUCTURE AND A STABLE ADMINISTRATION, UNDERPINNED BY A LOW TAX STRUCTURE, FREE MARKET PRINCIPLES AND RESPECT FOR INDIVIDUAL. FREEDOMS.

"OUR ECONOMY, LIKE ALL OTHER ECONOMIES, WILL UNDOUBTEDLY SUFFER CYCLICAL DOWN-TURNS BUT AS IN THE PAST PROVIDED WE ARE BOLD IN OUR VISION AND PLAN AHEAD, WE WILL TAKE FULL ADVANTAGE OF OUR RESILIENCE AND FLEXIBILITY, SHE SAID.

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