.3
External investments in HK's non-manufacturing sectors
The value of total net assets attributable to inward direct investments in the non-manufacturing sectors of Hong Kong totalled $686.3 billion at the end of 1994, 8% higher than the amount at the end of 1993.
Analysed by individual investor country/territory, the United Kingdom was the largest investor country, accounting for 30% ($203.1 billion) of the total at the end of 1994.
This was followed by Japan and China, which accounted for 20% ($136.4 billion) and 19% ($129.8 billion) of the total respectively.
The United States of America was the fourth largest investor country and accounted for 11% ($75.9 billion) of the total.
Their corresponding shares at the end of 1993 were broadly similar. Taken together, these four investor countries accounted for around 80% of the total net assets attributable to inward direct investments in the non-manufacturing sectors of Hong Kong.
"These figures reflect the strong economic linkages between Hong Kong and these countries," said the Commissioner for Census and Statistics, Mr Frederick Ho, when commenting on the findings of a new survey of external investments in Hong Kong's non-manufacturing sectors released today (Friday).
On the conceptual aspects, Mr Ho explained: "Inward direct investment in a Hong Kong enterprise (which may be a company or a group of companies) refers to investment in it by a non-Hong Kong resident investor which has a lasting interest in and an influence over the management of the enterprise.
"Besides equity capital and reinvested earnings, such investment also includes loan capital provided by the external direct investor, if any.
"The investment, together with funds from sources other than the external direct investor (notably bank loans), is used by the enterprise for financing the procurement of fixed assets (such as land and buildings, machinery and equipment etc) and net current assets for running business.
"The combined amount of fixed assets and net current assets is referred to as the net assets of the enterprise."
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