TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 51

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China's

inflation is

expected to

have

little impact on Hong Kong's outward

The depreciation offset the higher

Similarly, relatively processing activities in Guangdong.

of the Renminbi should help to

local costs in the province, thereby maintaining the external price competitiveness of the products. As for those Hong Kong companies engaged in sales,

whether in goods

services, to China's domestic

market, they may

receive a lower sales value in

foreign currency terms due to the Renminbi

depreciation, but the prices of their products may well be raised along with the higher inflation in China (paragraph 28).

or

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