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(Guardian: cont'd)
China's reported decision to give priority to joint ventures in Hong Kong and Macao is regarded by observers as a trial run.
(Financial Times: September 13)
Leading Hong Kong property developers have reached preliminary agreements to build tourist hotels in several major Chinese cities. Chinese officials are expected to finalise the transactions next month with high-level representatives from a number of major Hong Kong companies, including New World Development. Hopewell Holding, Sun Hung Kai Properties and Sun Hung Kai Securities.
These arrangements follow a growing realisation among Hong Kong developers that Peking's dramatically expanded ambitions to attract tourist dollars has out-stripped the Chinese infrastacture's capacity to accommodate the deluge of tourists.
The first site slated for development is believed to be an 80,000-sq. ft. lot in Peking. Other locations include Canton, Shanghai, Hangchow and Kweilin, all of them prominent tourist attractions. The border town of Shum-chun, just across from Hong Kong's new territories and an area just north of the nearby Portuguese colony of Macao are also being considered although these projects will be resort developments aimed chiefly at attracting Chinese from Hong Kong and Macao.
(Sing Tao Wan Pao: September 13)
on a joint
According to reliable sources in the financial circle, three local consortia namely the Sun Hung Kai, Hopewell and the New World have decided to embark venture by investing HK$1 billion to build modern hotels and tourist facilities in four of China's big cities which include Peking, Shanghai, Kweilin and Canton.
Representatives of the three consortia will go to China shortly to hold discussions with the Chinese authorities on details of the plan and signing of contracts.
According to another source, the motive of this venture is not money oriented. The consortia is simply aiming to help China develop its tourist industry and in the process recovering their own money invested. Although this kind of investment does not accrue profit, it can consolidate Hong Kong's position and enhance financial stability.
(Asian Wall Street Journal: September 14)
Gordon Wu, head of Hopewell Holdings Ltd., a major real estate company, said Hopewell and a number of other real estate companies have jointed together to negotiate with Peking. "We are in very serious talks with the Chinese authorities," he said. “I expect to see some action before the end of the year."
Aside from this group, a number of other bidders are pursuing China's hotel construction business. Reportedly included in the pursuit are Richard Lee, owner of the Lee Gardens Hotel, and Henry Fok a businessman with close Chinese connections. His enterprises include a string of gasoline stations that sell Chinese products.
"We understand that they're moving very, very fast,” Mr. Wu said of the Chinese authorities. "They've been approached by many, many groups. They're keen to promote tourism. Our assessment is that we've being most seriously considered."
Mr. Wu said Hong Kong businessmen have an advantage over Americans because China is "not too keen to talk with foreigners" but is more receptive towards proposals by "compatriots" in Hong Kong.
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