TNAG-1623-FCO40-2237-Relations-between-Hong-Kong-and-China-1987 — Page 198

CONFIDENTIAL # 3

CRC INF 4/87

(CEC 3/87)

Financial Developments in China and

their Implications for the Hong Kong Economy

Contents

The pre-1979 situation

Re-structuring and reform of China's

banking sector since 1979

Comments on the current state of

China's banking sector

Paragraph

1

www

3

-

2

15

16

23

Activities of foreign banks in China

24

28

Developments in China's

29

A

36

non-bank financial sector

China's fund raising activities

overseas

Implications of financial developments in China for the Hong Kong economy

37

39

(a) The importance of the

40

- 41

China dimension to

Hong Kong's development

into a regional

financial centre

(b)

Loan business to China

42

43

(c)

Financial relationships

44

-

46

between Hong Kong

and China

(d)

Hong Kong's presence in

47

China's banking sector

(e)

China's presence in

48

51

Hong Kong's financial sector

Conclusion

52

-

55

Annex Abbreviations

G.F. 32

CONFIDENTIAL # &

4.2