TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 241

CONFIDENTIAL #

G.F. 326

CRC INF 12/88

(CEC 6/88)

Report on Developments in Hong Kong-China Economic Relations

second quarter of 1988 -

-

Summary

General economic development in China

(I)

(a) Domestic sector

(b)

External sector

(c)

Development of China's

financial sector

(i)

Loans and money supply

(ii) Exchange rate of Renminbi

(iii) Foreign banks in China

(iv) Regional financial developments

Paragraph

1

- 9

10

13

14

16

17

18

19

20

(d)

Developments in the vicinity of Hong Kong

21

-

23

(II)

Visible trade between Hong Kong and China

24

28

(III)

Financial links between Hong Kong and China

(a)

Financial transactions between Hong Kong and China

29

(b)

Fund raising in Hong Kong

(c) Bank of China (BOC) Group

30

33

34

(IV)

Investment

(a)

Hong Kong's investment in China

35

-

- 36

(b)

(V)

Conclusion

China's investment in Hong Kong

37

38 39

—

Statistical appendix

CONFIDENTIAL #