9.
The stock market has undergone a more severe period of weakness since the period of selling in March which is described in the report. From a high of 1445 in January, the Hang Seng index fell to 937 in in August. It has recovered somewhat to 1048 in early September. The decline in share prices reflects continued weakness in the property market, and - if anecdotal evidence is to be believed - a loss of confidence worsened by particular HKG operations in land.
Inflation
10.
Q2 consumer prices were 11% higher than Q2 1981, representing a continuing fall in the inflation rate (the Q1 comparison was 13%). Declining property prices and rents have contributed to this improvement.
Comment
11.
The fall in the expected growth rate of the Hong Kong economy will have a direct effect reducing government revenue. This reduction will be worsened by the continued slump in property prices which lowers income from land sales, and will lead to a fall in the budget surplus forecast in February.
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going through
12. While the Territory is by its own standards a difficult period, even a 3% real growth performance and its 3.5% measured unemployment rate would be regarded with envy by many countries.
Nick Hallett
8 September 1982
dr. Buton pl.
Mm. Have
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