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23.
will
First,
like
investment from other sources, which
benefit the Hong Kong economy, China's investment in
Hong Kong should be welcomed and encouraged. Secondly,
PRC-interest companies have SO far been very willing to
follow the
respect to
the profit
confidence
practices in Hong Kong's market economy. Their the rules of the game, couple with pursuit of motive instead of the political motive, instils
in Hong Kong's business circle. Thirdly, a
substantial amount of investment from China serves to
broaden the sources of foreign investment in Hong Kong, so
that Hong Kong would not become over-dependent on investment from the United States and Japan.
24.
can
be expected,
In the 1990s, further substantial increases in
China's investment in Hong Kong particularly in the following areas:
(a)
(b)
Hong Kong is
developments on
infrastructural projects, as
undertaking very ambitious
the airport and port facilities;
financial services, as China needs to make
good use of Hong Kong's financial sector to
raise funds for its economic development;
and
(c) conventional
trade-related businesses like
transportation, storage and distribution, as
there is likely to be continuous expansion
in Hong Kong -China trade.
Economic Analysis Division Economic Services Branch Government Secretariat 6 September 1991
CONFIDENTIAL
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