13.
The prices of local stocks rallied strongly in October on massive buying from overseas institutional investors. The optimism stemmed from the eventual settlement of the PRC-USA Section 301 issue, and the affirmation of continued economic reforms and open economic policies at the Fourteenth Congress meeting of the Chinese Communist Party. These positive factors overshadowed the uncertainties caused by the stalemate in Sino-British negotiations over the financing arrangement of the new airport projects. The Hang Seng Index surged by 685 points during October to close the month at 6 191. Average daily turnover rose to $3.09 billion in October, from $1.75 billion in September.
Property
14.
The residential property market continued to remain soft, with prices adjusting downwards amidst thin transaction. Nevertheless, housing rentals rose further, in particular for the large flats. In the market for shopping space, prices and rentals held generally steady, supported by the sustained robust performance of retail sales. The market for office space continued to show signs of firming up. The market for factory space remained stable. Well-located modern industrial buildings designed for both manufacturing and ancillary office uses attracted greater investment interest.
15.
Results of the Government land auctions on 8 October were mixed. While the industrial site in Sha Tin fetched a satisfactory price, developers appeared to be more cautious in bidding for the residential site in Fan Ling.
Investment
16.
Retained imports of capital goods increased sharply by 19% in real terms in the first eight months of 1992 over a year earlier. Within this category, retained imports of industrial machinery for manufacturing use registered an increase of 14%. Building and construction activity remained sluggish, however.
Economic indicators
17. appendix.
The main economic indicators are shown in the following statistical
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