TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 123

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investments since this is the basis companies use in their accounts. The methods used in the UK to compile direct investment statistics follow the internationally accepted guidelines as set out by the International Monetary Fund and

updated by the OECD in its Benchmark Definition of Direct

Investment.

ii the book value of direct investment covers only the net assets attributable to the parent company. The overseas subsidiaries, branches and associates may raise funds from

other souces such as local borrowing or from other

shareholders and use these to acquire other assets. The

figures do not cover assets managed but not owned by UK

companies.

iii

Overseas direct investments are often held through

intermediate overseas holding companies. Where, in response to the survey, the companies do not provide full details

of both the intermediate and the final country of

investment there may be some

investment between countries.

misallocation of direct

5. I am unable to comment on the figures for particular companies because of the rules which prevent the disclosure of information supplied in confidence in response statistical inquiries such as

the Census of Overseas Assets. However the determination of

ivechut

direct links is not straightforward. For example, according to public records, Matheson & Co Ltd is

is owned by a Hong Kong

company, Jardine Matheson Holdings Ltd which in turn has a

Bermuda based company of the same name as ultimate parent.

6. Of course direct investment is only one aspect of UK assets in Hong Kong. Despite the deficiency in statistics on the other