XN000022-1992-04-16 — Page 9

THURSDAY, APRIL 16, 1992

"IN THE COMING DECADE, HONG KONG WILL CONTINUE TO MAKE FULL USE OF ITS STRATEGIC LOCATION AND ITS ROLE AS A TRADE AND FINANCIAL CENTRE IN THE ASIA PACIFIC.

US,

AND

"THE ASIA PACIFIC HOLDS VAST OPPORTUNITIES FOR ALL OF IN THE PURSUIT OF REGIONAL CO-OPERATION IN THE ASIA PACIFIC HONG KONG IS DETERMINED TO PLAY A ROBUST PART, MR TSANG SAID.

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HE TOLD THE MEETING THAT HONG KONG CONTINUED ΤΟ BE AN ATTRACTIVE LOCATION FOR INVESTMENT FROM OTHER TERRITORIES IN THE REGION BECAUSE OF THE BENEFIT OF A LOW TAX REGIME AND AN EFFICIENT

INFRASTRUCTURE.

TOTAL REGIONAL INWARD INVESTMENT IN HONG KONG'S MANUFACTURING INDUSTRY REACHED US$3 BILLION AT THE END OF 1990, ACCOUNTING FOR 78 PERCENT OF THE TOTAL FOREIGN INDUSTRIAL INVESTMENT IN THE TERRITORY.

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IN THAT YEAR, JAPAN RANKED NUMBER ONE AMONG ALL COUNTRIES INVESTING IN HONG KONG'S INDUSTRY, ACCOUNTING FOR 32 PERCENT OF THE TOTAL. INVESTMENT VALUE. THE UNITED STATES CAME SECOND WITH 31 PERCENT AND CHINA THIRD WITH 11 PERCENT.

"TWO DEVELOPMENTS HAVE BECOME INCREASINGLY CLEAR IN RELATION TO HONG KONG'S FOREIGN INVESTMENT. FIRST, MORE INVESTMENT IS NOW IN: THE

SERVICE SECTORS. THIS IS IN LINE WITH THE STRUCTURAL TRANSFORMATION WHICH HONG KONG IS GOING THROUGH.

"SECONDLY, CHINA IS FAST BECOMING AN IMPORTANT INVESTOR IN HONG KONG, MR TSANG SAID.

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A SURVEY CONDUCTED IN THE MIDDLE OF LAST YEAR SHOWED THAT ABOUT HALF OF THE 606 COMPANIES HAVING THEIR REGIONAL HEADQUARTERS LOCATED IN HONG KONG WERE FROM THE ASIA PACIFIC.

TALKING ABOUT THE TERRITORY'S INVESTMENT IN ASIA PACIFIC REGION, MR TSANG EMPHASISED THAT FOR HONG KONG, INVESTMENT WAS VERY MUCH A TWO-WAY STREET.

HONG

"IN ADDITION TO ITS EXTENSIVE INVESTMENTS IN SOUTH CHINA, KONG CONTINUES TO LOOK OUTWARDS FOR INVESTMENT OPPORTUNITIES AS MANY OF ITS HOME-GROWN BUSINESSES HAVE GONE MULTINATIONAL.

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"AND NATURALLY THEIR INVESTMENTS OVERSEAS RADIATE THROUGH MANY

OF THE SOUTHEAST ASIAN ECONOMIES.

"LABOUR AND SPACE INTENSIVE

OPERATIONS OF OUR INDUSTRY, IN MANUFACTURING BASES IN

PARTICULAR, ARE STEADILY MIGRATING TO NEW NEIGHBOURING TERRITORIES.

ARE

"THIS IS A GOOD EXAMPLE OF HOW COUNTRIES IN THIS REGION ALREADY CO-OPERATING ACCORDING TO EACH OTHER'S COMPARATIVE ADVANTAGE, HE SAID

TURNING TO HONG KONG'S TRADING RELATIONS WITH THE TSANG SAID HONG KONG WAS NOW THE FOURTH LARGEST TRADING ASIA PACIFIC AND 10TH IN THE WORLD.

REGION,

MR ENTITY IN

/HE ATTRIBUTED