!
(b)
(c)
RESTRICTED
4
HK$1,600 million invested. of these 581, 199
were co-operative ventures in which some
HK$1,414 million (88.4% of the total) had been
invested. This gives an average investment of
about HK$7 million for each co-operative
venture;
Compensation trade. Machinery and equipment is "loaned" to the Chinese enterprise by a foreign
investor. The Chinese side then pays for the machinery and equipment in instalments from money earned through the foreign businessman's purchase of manufactured products. The plant
is thus owned by the Chinese enterprise once
the debt is cleared. According to Fang Zhuofen,
up to the end of 1980 4 such projects were running in Shenzhen and accounted for 2.1% of
the total investment (i.e. HK$33.6 million or
an average of HK$8.4 million in each project);
Joint ventures (hezi jingying). This is the
most formal sort of arrangement requiring fairly hefty investment by both parties who manage the enterprise jointly. Chinese and foreign partners are shareholders in the enterprise with their respective investments in equipment, machinery, land, buildings and offices calculated as capital stock. Profits,
which should be substantial, are shared in the proportion of the capital invested. Fang does not specify the number of such ventures in Shenzhen, but says they are few accounting
for 2.4% of total investment (i.e, HK$38.4
million);
RESTRICTED
/ (d)