XN000022-1992-12-30 — Page 2

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WEDNESDAY, DECEMBER 30, 1992

RESPECTABLE ECONOMIC GROWTH RATE TO CONTINUK

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HONG KONG IS ON TARGET FOR A FIVE PER CENT GROWTH IN REAL TERNS FOR THE ECONOMY IN 1992 AND THIS GROWTH RATE

IS EXPECTED TO CONTINUE, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, (WEDNESDAY).

SAID TODAY

REVIEWING HONG KONG'S ECONOMIC PERFORMANCE IN 1992 AT A PRESS BRIEFING, HE SAID OUR ECONOMIC FUNDAMENTALS CONTINUED то BE STRONG AND SOUND, WITH THE IMPETUS MAINLY COMING FROM STRONG RE-EXPORT PERFORMANCK AND BUOYANT DOMESTIC DEMAND IN BOTH CONSUMPTION AND INVESTMENT.

"THIS MADE IT POSSIBLE FOR US TO PLAN WITH CONFIDENCE FOR PUBLIC SECTOR SPENDING TO INCREASE IN REAL TERMS BY FIVE PER CENT A YEAR AND FOR THE GOVERNOR TO ANNOUNCE AN AMBITIOUS LONG-TERM PROGRAMME IN HIS POLICY ADDRESS, HE SAID.

HE NOTED THT THIS RESPECTABLE ECONOMIC GROWTH RATE WAS EXPECTED TO CONTINUE ON AVERAGE THROUGH TO 1997, BARRING MAJOR ADVERSE CHANGES SUCH AS CHINA/USA TRADE PROBLEMS.

ON INFLATION, HE SAID HONG KONG WAS AGAIN ON TARGET FOR THE FORECAST 9.5 PER CENT FOR 1992 AND STRESSED THAT THE GOVERNMENT WOULD CONTINUE TO TACKLE INFLATION AS BEST IT COULD.

AS FOR TRADE, THE LATEST FIGURES SHOWED REAL INCREASE OF OVER 20 PER CENT IN THE TOTAL FXPORTS OVER A YEAR EARLIER.

TURNING TO THE PROPERTY MARKET, THE PINANG FAL SECRETARY SAID ACTION TAKEN BY THE GOVERNMENT, COUPLED WITH 70 PER CENT CEILING FOR HOME MORTGAGE LENDING, BAD HAD COOLING EFFECT ON DOMESTIC PROPERTY

SPECULATION.

HOWEVER, HE STRESSED THAT IT WAS STILL PREMATURE TO TALK ABOUT RELAXING THE LIMIT ALTHOUGH PRICES IN RESIDENTIAL MARKET APPEARED TO HAVE EASED TOWARDS THE END OF THIS YEAR.

THE GOVERNMENT WOULD KEEP THE SITUATION UNDER REVIEW,

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HE ADDED.

ON THE BEDGET, HE POINTED OUT THAT HE HAD HAD TWO ROUNDS OF INTENSIVE CONSULTATIONS WITH ALL LEGCO MEMBERS IN THE CONTEXT OF THE PREPARATION OF THE 1993 BUDGET, RESULTING IN THE SPENDING PRIORITIES BEING LARGELY REFLECTED IN THE GOVERNOR'S POLICY ADDRESS.

REVIEWING THE PERFORMANCE OR THE FINANCIAL AND MONETARY SECTORS, MR

MACLEOD WAS PLEASED TO NOTE THAT THE COUNCIL OF STOCK RXCHANGR WAS NOW MORE REPRESENTATIVE OF THE INTEREST OF BROKERS MARKET USERS THROUGH VARIOUS REFORMS AND RESTRUCTURING.

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THE INTRODUCTION OF THE CENTRAL CLEARING AND SETTLEMENT IN NOVEMBER HAD BEEN A GREAT STEP FORWARD IN DEVELOPING HONG KONG'S SECURITIES MARKET, HE SAID.

/HE ALSO