TNAG-1646-FCO40-2293-Chinese-investment-in-Hong-Kong-1987 — Page 18

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of 7% recorded for the whole of 1986. Thus, the

revival in investment intentions since the third

quarter of 1986 has continued into the first

quarter of 1987.

Table 3

Table 4

7.

Of the retained imports of capital goods in the first quarter of 1987, industrial machinery was the largest component (accounting for 26% of the total value), followed by transport equipment

(19%) and electronic components and parts for

computers (7%). The breakdown of retained imports

of capital goods in the first quarter of 1987 and

in 1986 as a whole are shown in Table 3, while the

growth rates in money terms for the various components of capital goods are shown in Table 4. Because of difficulties in compiling reliable price

indices as the product breakdown becomes more

disaggregated, growth rates in real terms are not

available for all the components. Caution should

be exercised in interpreting the figures in Table 4

as the increases in the prices of imported capital goods have generally been high since the first

quarter of 1986.

Table 2

8.

(c) Retained imports of industrial

machinery for use in the

manufacturing sector

Retained imports of industrial machinery

for use in the manufacturing sector grew in real

terms by about 24% in the first quarter of 1987

compared with the first quarter of 1986. The

corresponding growth rate for 1986 as a whole was

26%, after a decline of 4% in 1985 (Table 2).

suggests that the strong revival of investment in

This

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