TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 94

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

11

SYNOPSIS

Helped by the traditionally strong economic ties

between Hong Kong and China, the financial links between

the two places have widened in range and deepened in

recent years. Hong Kong now plays an active role in

proviaing creait facilities and financial services to

support China's modernizations programme.

2.

The financial relationship between the two

places has become increasingly close, as indicated by the

rapia growth in financial transactions between Hong Kong's

financial institutions and their counterparts in China

(paras. 5 to 8 and Tables 1 to 3).

3.

China's financial presence in Hong Kong (paras.

9 to 10 and Table 4) has also grown over the years,

assisted by computerization (para. 12), a substantially widened retail banking network (para. 13 and Tables 5 and

6), and diversification of financial activities (para. 14)

through the creation of subsidiary or associate

deposit-taking companies and joint venture merchant banks,

as well as a significantly enlarged capital base (para. 15

and Table 7).

CONFIDENTIAL #≈

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