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in the same
period
in 1992 (13)
pledged and realised
The total values of
foreign direct investment, estimated
at US$58.76 billion and US$9.39 billion in the first half
of 1993, also grew substantially over the same period in 1992, by 300.3% and 179.8% respectively (14).
11.
(a) Financial developments in China
During the first half of this year, many domestic
banks offered loans to their customers in a way not
strictly in compliance with, and at worst in blatant breach
of, the instructions given by the People's Bank of China.
They were generally found to have loaned out more than
their assigned quotas and diverted funds originally
earmarked for certain specific purposes, such as grain
procurement, to speculative ventures. Liquidity was
therefore unduly tight in the essential project areas. Also, farmers were landed with uncashable payment scripts
(IOUS) and this had led
rural unrest in certain
provinces. The fact that banks were not allowed to compete
freely for funds with non-bank financial institutions
offering higher interest rates, and that industrial and commercial enterprises were able to issue bonds and shares
directly, had added
the banks'
to
to
financial
problem.
(13) By end-September 1992,
(14)
а total of 63 foreign-funded enterprises were in operation.
855
By end-1992, the cumulative value of realised foreign capital (direct investment and loans) in China amounted to US$98.8 billion, of which US$34.4 billion was direct foreign investment. These represented 52% and 31% respectively of their corresponding pledged values of US$191.1 billion and US$110.5 billion.
As regards cumulative estimated accounting
Hong value
Kong's investment in China, the of realised direct investment was at around US$23 billion by end-1992, for about two-thirds of the overall total For Guangdong Province, the corresponding figures were more than US$6 billion and about 80%.
for China.
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