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Page No. 2 of 10 pages
Banking and Commerce
3.
The CPG controlled Bank of Communications has paid a deposit of
HK$30 m. for the first five floors of a large office block in Central which
it plans to use as its headquarters.
4.
The Pô, Sang Bank, the only communist controlled bank trading in
gold, has suggested to the Bank of China that additional agencies be
established in order to increase this trade. It is not clear which particular
gold market the bank has in mind.
5.
The Bank of China has instructed its branch offices to exercise
greater discrimination when granting loans to textile concerns. Applicants
are to be required to produce increased collateral or a reliable guarantor.
6.
The Bank of Tokyo has joined with the communist controlled Kincheng
Banking Corporation and the Bank of China in setting up a new finance company,
the Kincheng Tokyo Finance Co. Ltd.
There have been persistent though unconfirmed reports that the Civil
Aviation Administration of China (CAAC) is the purchaser, through nominees,
of a large part, or the whole, of Gammon House, one of Hong Kong's most
valuable and prominent office buildings, for between HK$1000 m. and HK$1700 m.
7.
Investment in China
8.
It was announced on 26 August that the NPC had approved the conditions
for foreign investment in Guangdong's three Special Economic Zones of Shenzhen,
Zhuhai and Shantou. The conditions are set out in 15 regulations, which give
greater detail than was provided in the Joint Venture Law of July 1979. The
regulations provide, inter alia, for a 15% profit tax (with more favourable
rates for special categories of industry) on foreign investment; for the
remittance overseas of the remaining profit; for preferential treatment in
respect of import duties on plant, materials etc. required to set up and run
the industries; for simplified entry and exit procedures for foreign personnel
involved; for the exercise by management of full control over local labour;
and for favourable treatment in respect of ground rents and length of tenure.
Products