TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 261

CONFIDENTIAL #

16

G.F. 326

(III)

Financial links between Hong Kong

and China

(a)

Financial transactions between Hong Kong

and China

29.

Financial transactions between Hong Kong and

China continued to grow. Claims on China's banks and on the non-banking sector rose by 5.6% and 15.2% respectively during the second quarter. Year-on-year, the corresponding increases were 28.8% and 68.3%.

Liabilities

to China's banks grew by 15.3% during the second quarter and by 22.2% over the preceding twelve months.

External liabilities and claims against

China in respect of Hong Kong's

authorized institutions

Liabilities to China's

China's

As at end of

banks

bank

Claims on

Claims on China's non-banking

sector

(HK$Mn)

(HK$Mn)

(HK$Mn)

1987

Q1

34,474

34,822

12,621

Q2

40,032

39,300

16,479

03

46,573

43,167

18,422

Q4

48,415

43,549

22,299

1988

01

42,420

47,950

24,069

Q2

48,917

50,617

27,730

CONFIDENTIAL #