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Hong Kong is a regional financial centre and is an important source of investment funds for New Zealand. Table 13 shows that New Zealand investment in Hong Kong has been negative due to New Zealand companies accessing capital in this market while Hong Kong investment into New Zealand has been positive. Table 13 also illustrates that there is variation in the annual investment flows. For the year ended March 2000, Hong Kong was New Zealand's sixth largest source of international direct investment, after Australia,
New Zealand and Hong Kong concluded an Investment Protection and Promotion Agreement (IPPA) in 1995, signed prior to Hong Kong's reversion to Chinese sovereignty. A CEP Agreement could afford the opportunity to establish mechanisms aimed at encouraging greater two way flows of productive new investment, which in New Zealand's case, would complement the Government's economic and regional development priorities.
Table 13: New Zealand - Hong Kong Direct Investment (NZ$ Millions)
| Year Ended March | New Zealand Direct Investment in Hong Kong | Hong Kong Direct Investment in New Zealand |
|---|---|---|
| 1996 | -112 | 1439 |
| 1997 | -678 | 1355 |
| 1998 | -1086 | 1117 |
| 1999 | -1632 | 875 |
| 2000 | -583 | 1067 |
Source: Statistics New Zealand
We are interested in receiving information from businesses or investors on possible barriers to two way investment flows between New Zealand and Hong Kong.
