XN000022-1990-10-31 — Page 23

WEDNESDAY, OCTOBER 31, 1990

21

MORE FOREIGN BANKS SHOW CONFIDENCE IN HONG KONG'S FINANCIAL SECTOR

* * * * *

REFLECTING CONFIDENCE

THE SECTOR, FINANCIAL IN HONG KONG'S

OPERATIONS IN NUMBER OF FOREIGN BANKS SETTING UP OR UPGRADING THEIR

SIR PIERS HONG KONG CONTINUED TO INCREASE, THE FINANCIAL SECRETARY, JACOBS, SAID TODAY (WEDNESDAY).

ON THE SPEAKING AT THE LEGISLATIVE COUNCIL'S RESUMED DEBATE

JUNE GOVERNOR'S POLICY ADDRESS, SIR PIERS SAID IN THE 12 MONTHS AFTER

THE TERRITORY LAST YEAR, MORE MAJOR BANKS ESTABLISHED THEMSELVES IN THAN IN ANY COMPARABLE PERIOD SINCE 1980.

"IN

OF OVERSEAS SECURITIES

DURING

ADDITION, A CONSIDERABLE NUMBER COMPANIES AND NEW REGIONAL HEADQUARTERS HAVE BEEN ESTABLISHED THIS SAME PERIOD," HE SAID.

KONG'S ECONOMIC BUT THE GULF

OVERALL, THE FINANCIAL SECRETARY SAID, HONG PROSPECTS IN THE MEDIUM TO LONGER TERM REMAIN GOOD, CRISIS HAD INJECTED NEW UNCERTAINTIES, AND THESE UNCERTAINTIES WELL HAVE SOME IMPACT ON HONG KONG'S ECONOMIC PERFORMANCE.

COULD

SOME RETAINED

ENCOURAGING

IMPORTS

OF

SIR PIERS SAID THAT RECENTLY, THERE HAD BEEN SIGNS IN THE RE-EXPORTS, DOMESTIC DEMAND AND CAPITAL GOODS.

IN

SOMEWHAT

"OVER THE LAST FEW MONTHS, WE HAVE WITNESSED STRONG GROWTH OUR RE-EXPORTS. THIS, TO AN EXTENT, HAS COMPENSATED FOR THE SLACK PERFORMANCE OF OUR DOMESTIC EXPORTS.

DOMESTIC

"WE HAVE ALSO WITNESSED SOME RECOVERY IN RELATION TO DEMAND. RETAIL SALES RECORDED INCREASES IN BOTH JUNE AND JULY, AND WE HAVE ALSO SEEN AN INCREASING NUMBER OF VISITORS TO HONG KONG.

AUGUST

RETAINED IMPORTS OF "I AM HAPPY TO ADD THAT IN RELATION TO CAPITAL GOODS, THERE WERE MODERATE INCREASES IN BOTH JULY AND FOLLOWING ZERO GROWTH IN THE FIRST HALF OF THIS YEAR." HE SAID.

KONG CONTINUED THE ON

LABOUR FRONT, SIR PIERS SAID HONG EXPERIENCE A TIGHT MARKET, ALTHOUGH SOME SLIGHT EASING WAS EVIDENT THE UNEMPLOYMENT AND UNDEREMPLOYMENT RATES FOR JUNE TO AUGUST.

TO

IN

HE NEVERTHELESS, RAPID INCREASES.

SAID, WAGES AND EARNINGS CONTINUED

ΤΟ SHOW

PRIVATE AND PUBLIC DAMAGING EFFECTS OF SECTORS RISING COSTS AND PRICES ON THE OVERALL WELL-BEING OF OUR COMMUNITY.

"IN OUR CURRENT CIRCUMSTANCES, BOTH THE MUST EXERCISE RESTRAINT TO AVOID THE

CONTROL OVER DOES NOT SECTOR ACTIVITIES

"THE GOVERNMENT WILL CONTINUE TO EXERCISE TIGHT THE GROWTH IN PUBLIC SECTOR EXPENDITURE TO ENSURE THAT IT COMPETE FOR SCARCE RESOURCES REQUIRED FOR PRIVATE AND THUS FURTHER FUEL INFLATION.

"THE RECENT