TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 55

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4

marginally

behind

Japan. (Note: In 1992, Hong Kong

re-classification

was China's largest trading partner. The change in

position in the first half of 1993 is due to a

technical

in China's customs

statistics, and not because of any setback in the

relevant trade flows of Hong Kong.) Hong Kong's

visible trade with China grew by 19% in value terms to

HK$341

billion

in

1993 (paragraph 19).

the

first

half

of

(11) The strong surge in Hong Kong's industrial investment

and outward processing activities across the border,

coupled with the buoyant domestic demand in China,

contributed to a further increase in Hong Kong's

domestic exports and re-exports to China, by 8% and

in the

of 1993

Hong Kong's re-exports of China

36% respectively

(paragraph 20).

first

half

origin also grew strongly by 18%. In stark contrast,

retained imports

decrease of 24%,

Chinese goods in

and 24).

from China registered a marked

mainly due to reduced popularity of

the Hong Kong market (paragraphs 23

(12)

On

continued

to

two-way investment, Hong Kong's investment in China

grow in the first half of 1993, as did

investment by China-interest companies in Hong Kong.

But more recently, because of concern over China's

overheating and the consequential restraint

measures, Hong Kong investors were generally more

cautious in initiating new

economic

projects across the

(13)

border (paragraphs 28 to 32).

The precise impact of China's "16-point plan" on the

Hong Kong economy depends on the form, duration and

intensity of the respective restraint measures.

Nevertheless,

as the measures adopted so far are less

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