XN000022-1990-11-23 — Page 4

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THE

OF PROPORTION "DURING THE FIRST HALF OF THIS YEAR, THE

VACANCIES EMPLOYED POPULATION WORKING LONG HOURS WAS REDUCED, AND THE SITUATION HAD IMPROVED SIGNIFICANTLY IN MOST SECTORS," MR TANG SAID.

TO HAVE BECOME LESS

COMPETITION FOR

LABOUR THUS APPEARED

INTENSE.

THE RESIDENTIAL

REMAINED

TURNING TO PROPERTY, MR TANG SAID MARKET CONTINUED TO BE ACTIVE IN THE THIRD QUARTER.

PROPERTY

"THE DEMAND FOR SMALL TO MEDIUM-SIZED FLATS WHILE THERE WAS RENEWED DEMAND FOR LARGE FLATS IN CERTAIN AREAS. COMPLETION SALES OF FLATS WERE GENERALLY WELL RECEIVED.

STRONG, PRE-

ON

SHOPPING SPACE, DEMAND STAYED FIRM EXCEPT

THE MARKET LOCATIONS. CONTINUED TO SOFTEN.

FOR OFFICE

AND

IN THE FRINGE FACTORY SPACE, HOWEVER,

IN THE FINANCIAL

THE SECTOR,

FOLLOWING

DEVELOPMENTS

WERE

THE

MOVEMENT

OF THE U.8.

DOLLAR,

THE

110.1

OBSERVED DURING THE THIRD QUARTER.

FIRST, REFLECTING EFFECTIVE EXCHANGE RATE INDEX OF THE HONG KONG DOLLAR FELL FROM AT THE END OF JUNE TO 107.5 AT THE END OF SEPTEMBER.

SECONDLY, INTEREST RATES IN THE LOCAL MONEY FIRM DURING MOST OF THE THIRD QUARTER.

THIRDLY,

MARKET

REMAINED

SLOWLY DURING THEIR GROWTH RATE DEPOSITS DURING THE

DOMESTIC LOANS AND ADVANCES ROSE MORE THE THIRD QUARTER THAN DURING THE SECOND QUARTER. WAS ALSO SLOWER THAN THAT OF HONG KONG DOLLAR THIRD QUARTER.

FOURTHLY,

A WERE ON

RISING SHARE PRICES AND TURNOVER LOCAL

OF TREND IN THE EARLIER PART OF THE THIRD QUARTER BEFORE THE OUTBREAK

OF THE QUARTER THE GULF CRISIS, BUT FELL SHARPLY IN THE REMAINDER FOLLOWING DECLINES IN MAJOR STOCK MARKETS OVERSEAS.

THE GDP AND DEVELOPMENTS,

THE GOVERNMENT ECONOMIST SAID THAT IN UPDATING

FOR

OF THESE PRICE FORECASTS

1990 IN THE LIGHT ADJUSTMENTS WERE ALSO MADE TO THE COMPONENT FORECASTS AS APPROPRIATE.

TERMS

IN THE EXTERNAL SECTOR, THE FORECAST GROWTH RATE IN REAL OF RE-EXPORTS WAS FURTHER RAISED TO 12.5 PER CENT, FROM 11 PER CENT IN THE AUGUST UPDATE.

"THERE WAS A CONSISTENTLY STRONG SURGE IN RE-EXPORTS SINCE EARLY PART OF THIS YEAR, MR TANG SAID.

THE

TO

INCREASE "THE CONTINUED

IN OUTWARD PROCESSING ACTIVITIES, COUPLED WITH THE RECOVERY IN RE-EXPORTS TO CHINA, SHOULD CONTINUE

HE ADDED. CONTRIBUTE TO RE-EXPORT GROWTH IN THE NEXT FEW MONTHS,

IN

DOMESTIC EXPORTS ARE EXPECTED TO DECREASE BY ABOUT 0.5 PER CENT THE FIRST REAL TERMS IN 1990, MAINLY REFLECTING THE DECLINES IN THREE QUARTERS OF THE YEAR.

/THE SIGNIFICANT