TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 8

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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contemplating

(paragraph

to

9).

introduce more

price.

reforms

Even though the overall rate of

inflation was still low, inflationary pressures were building up in the cities (paragraph 10).

(5) Due to a significant pick-up in the growth rate of

imports, China's visible trade surplus narrowed to

(6)

US$1.4 billion in the second quarter of 1991

(paragraph 11).

The share of total exports by

foreign-funded enterprises in China increased further

15.5% in the first half of 1991, from 12.6% in 1990

(paragraph 12).

to

On external borrowing, the World Bank and the Asian

Development Bank had both relaxed their stance in

lending to China (paragraphs 13 and 14). The Chinese

government and the enterprises had resumed their

overseas fund-raising activities in 1991 (paragraph

15).

In the first half of 1991, the pledged and

realised values of foreign loans amounted to US$3.2

billion and US$3.1 billion respectively (paragraph

17).

(7)

(8)

In the first half of 1991, the pledged and realised

value of direct foreign investment amounted to US$4.5 billion and US$1.7 billion respectively, representing

increases of 94% and 35% over the same period in

1990.

The central government intends to channel new foreign investment into the bottleneck sectors and the more inland provinces (paragraph 18).

The

but

growth rate of Guangdong's economy remained rapid, its general level of retail prices continued to

industrial growth in Guangdong is likely to be constrained by the shortages of

decline.

Future

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(9)

materials

(paragraph

20).

external sector was also in a buoyant

electricity

and raw

Guangdong's

state (paragraph 21).

In the first half of 1991, China and Hong Kong

remained each other's largest trading partner. The

value of total visible trade between them reached

HK$221 billion (paragraph 24), with Hong Kong

incurring a visible trade deficit of HK$37 billion

(paragraph 29).

(10) In the first half of 1991, the values of Hong Kong's domestic exports and re-exports to China increased by

14% and 34% respectively. Apart from the continued

growth in outward processing trade, relaxation of

import control by the Chinese government on raw

materials and capital goods also contributed to the

growth in Hong Kong's exports to China (paragraph 25).

continued

(11) The growth in Hong Kong's re-exports of China origin

remained rapid, at 31% in money terms in the first

half of 1991 (paragraph 27). On the other hand, the

value of

Hong Kong's retained imports of China origin

to decline in absolute terms as well as

relative to other sources of supply. This trend was

related at

least in part to the continued development

processing activities, which resulted in

being shipped out from China as re-exports

through Hong Kong to overseas markets rather than as

imports into Hong Kong for further processing

(paragraph 28).

of outward

more goods

(12) Cross-border

interbank

activities

continued

to

30).

increase in the second quarter of 1991 (paragraph Fund-raising activities in Hong Kong for financing investment in China had revived since the

beginning of this year

(paragraph 32). During the

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