XN000022-1992-09-09 — Page 6

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WEDNESDAY, SEPTEMBER 9, 1992

"SUCH REGIONAL DIVISJON OF LABOUR AND INTRA-INDUSTRY SPECIALISATION HAS BROUGHT ENORMOUS BENEFITS TO BOTH ECONOMIES. WHILE THE INDUSTRIAL PROCESSING WORK IS DONE IN GUANGDONG, MOST OF THE SUPPORTING SERVICES HAVE TO BE PROVIDED BY HONG KONG.

"THIS SUPPORT TAKES THE FORM OF FRONT-END SERVICES SUCH AS DESIGN AND THE SOURCING OF A WIDE VARIETY OF PARTS AND COMPONENTS; AND REAR-END SERVICES LIKE WAREHOUSING, QUALITY-CONTROL, MARKETING, TRADE FINANCING AND SHIPPING,'

*

HE SAID.

SECTOR

ON HONG KONG'S ECONOMY, MR LAN SAID THE FINANCIAL CONTINUED TO BENEFIT FROM THE TREND TOWARDS INTERNATIONALISATION OF FINANCIAL MARKETS, AND OVER THE YEARS, HONG KONG HAD DEVELOPED INTO A MAJOR REGIONAL LOAN SYNDICATION CENTRE.

"IN PARTICULAR, WE SERVE AS A FUND-RAISING CENTRE FOR CHINA.

"OUR STOCK MARKET IS THE SECOND LARGEST BOURSE IN THE AFTER JAPAN," HE SAID.

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MR LAN SAID THERE HAD ALSO BEEN A LARGE INFLOW OF HONEY. DEPOSITS IN HONG KONG'S BANKING SYSTEM HAD INCREASED STEADILY PER CENT EVERY YEAR FOR THE PAST FIVE YEARS. AND THERE HAD BEEN NO NET OUTFLOW OF THE HONG KONG DOLLAR.

SINCE THE SIGNING OF THE JOINT DECLARATION, HONG KONG DEPOSITS HAD GROWN AT AN AVERAGE RATE OF 16 PER CENT PER YEAR.

MR

DOLLAR

LAN ADDED THAT THE HENG SANG INDEX HAD REACHED AN ALL-TIME HIGH RECENTLY, AND HONG KONG'S RESIDENTIAL PROPERTY PRICES HAD GROWN MORE THAN 50 PER CENT ON AVERAGE IN THE PAST YEAR OR SO.

ON EMIGRATION, HE SAID WHILE IT HAD BEEN CAUSE FOR CONCERN, AN INTERESTING PHENOMENON WAS THAT AS A RESULT OF MORE EX-HONG KONG RESIDENTS RETURNING TO WORK, THERE WERE STRONG INDICATIONS THE NET OUTFLOW OF PEOPLE WAS ACTUALLY DECLINING.

"ALL THESE FIGURES AT LEAST SHOW THAT HONG KONG IS FAR BEING ON THE VERGE OF COLLAPSE DESPITE THE FACT THAT SOME PEOPLE STARTED A COUNT-DOWN TO 1997," HE SAID.

FROM HAVE

TURNING TO CHINA'S ECONOMY, MR LAN SAID CHINA WAS NOW MOVING FORWARD RAPIDLY AND HONG KONG WAS KEEN TO EXPLORE THE ECONOMIC OPPORTUNITIES AVAILABLE.

"so,

IT IS OF NO SURPRISE THAT MANY FOREIGN COMPANIES COME HONG KONG WITH AN EYE TO INVEST IN AND TRADE WITH CHINA.

ΤΟ

"HONG KONG CAN CERTAINLY PROVIDE THE BEST FOOTHOLD FOR COMPANIES WITH AN AMBITION OF EXPANDING THEIR

"

CHINA, HE SAID.

BUSINESS AMBIT IN

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