TNAG-1267-FCO40-1616-Economic-situation-in-Hong-Kong-1983 — Page 136

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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INFO PEKIN WSHDC IDN TOKYO

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---THE HKONG ECONOMY

WHILE PUBLIC ATTENTION HAS BEEN FOCUSSING PRIMARILY ON TRIBULATIONS

OF HKONG DOLLAR, OTHER DEVELOPMENTS IN HKONG ECONOMY HAVE BEEN NO/NO

LESS SIGNIFICANT.TOTTERING PROPERTY VENTURES AND FINANCIAL

INSTITUTIONS AND VERY UNBALANCED ECONOMIC INDICATORS ADD UP TO A

GREAT DEAL OF UNCERTAINTY.SOME OBSERVERS BELIEVE THAT WITH EXTENT

OF DAMAGE FROM IMPRUDENT PROPERTY INVESTMENTS NOW PRETTY WELL KNOWN,

AN ADMITTEDLY CAUTIOUS OPTIMISM IS BEGINNING TO EMERGE BASED ON

GOVTS APPARENT WILLINGNESS TO ACT, CHASTENED CORPORATE BOARD ROOMS

AND NOT/NOT LEAST ESSENTIAL SOUNDNESS OF ECONOMY.

2.ALTHOUGH FURTHER REVELATIONS COULD STILL ROCK BOAT OF WELL KNOWN

HONGS, MOST OF WHICH HAD EXPOSURE IN SOME HIGH FLYING VENTURE IN

HEY-DAY OF COLONYS ECONOMIC BOOM, HKONG SEEMS TO BE CLEANING UP ITS

ACT.LATE LAST MONTH WITH UNPRECEDENTED SPEED AND DEFTNESS, GOVT TOOK

OVER HANG LUNG BANK TO PREVENT ANY BANK/FRINGE BANK DOMINOES FALLING.

NEW MANAGEMENT HAS HONOURED ALL PANKS DEPOSITS AND NEW DIRECTOR

CONFIMRED THAT HE HAS NOT/NOT DISCOVERED ANY IRREGULARITIES IN WAY

BANK HAD BEEN RUN PRIOR TO GOVT TAKEOVER.FEW DAYS LATER SUN HUNG

KAI BANK, WHICH HAD SUFFERED FROM RUMOURED RUN ON DEPOSITS, HAD TO

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