TNAG-1640-FCO40-2287-Economic-situation-in-Hong-Kong-1987 — Page 5

CONFIDENTIAL #I

2 -

3.

Prospects for capital investment in 1988

have, however, become more uncertain after the

worldwide collapse of share prices.

Introduction

This report provides an assessment of

capital investment in Hong Kong based on data available up to the end of the third quarter of

1987. It focuses on investment in plant and machinery and in property.

2.

Most of the information in this report was supplied by the Census and Statistics

Department, the Rating and Valuation Department, the Buildings Ordinance Office and the Industry Department. For capital investment generally, statistics on gross domestic fixed capital formation are produced regularly as part of the

gross domestic product (GDP) estimates. The annual

data are published. The quarterly and half-yearly

data are, however, intended for internal reference

only and should not be quoted publicly. Breakdowns are available for plant and machinery and for

building and construction, in respect of both the

public and the private sectors. On investment in

plant and machinery, the statistics on retained imports of capital goods provide the best

up-to-date indicators. There are no separate data on re-investment, on depreciation or

on the

scrapping of existing capital. The information is therefore confined to capital investment in gross

CONEIDENTIAL * 宓