TNAG-1023-FCO40-1273-Visits-by-officials-from-Hong-Kong-to-the-UK-1981 — Page 19

CONFIDENTIAL

3 -

HONG KONG STOCK EXCHANGE AND GENERAL ECONOMIC SITUATION

12. The Hong Kong Stock Exchange has fallen more sharply than others

in recent weeks although there was a slight recovery last week.

Although the Hong Kong economy is going through a difficult period with

high inflation (by Hong Kong standards), rapid increase in the money

supply and a widening trade gap, there does not seem to be any cause

for serious concern.

Hong Kong and General Department

9 October 1981

CONFIDENTIAL