TNAG-1646-FCO40-2293-Chinese-investment-in-Hong-Kong-1987 — Page 26

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(ii)

continued into the first few months of

1987. However, signs of slowing down in

the growth of investment in some

industries were observed, due probably to

the need for consolidation after

substantial amounts of investment were

made last year and to seasonal influences;

Investment in the plastics and knitwear

industries has slowed down somewhat in the

first quarter of 1987 compared with the

fourth quarter of 1986. However, compared

with the first quarter last year,

investment in these two industries

increased. Investment intentions in the

plastic industry were sustained by a good

order book position, notwithstanding the

uncertainty caused by fluctuations in the

prices of plastic raw materials. This

could probably be explained by the fact

that for high quality plastic products,

the raw material cost is only a small

proportion of the total output value. In

the knitwear industry, about 600

computerised thread knitting machines at a value of HK$450 million have been imported for local use during the first quarter of

1987;

(iii) Five dyeing factories of medium size, each

with a capital of HK$20 - 30 million, have been set up during the first quarter; this

compares favourably with last year in

which many new factories were established

but of much smaller size. As regards the

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