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16.
By far the most ambitious of Chinese investments so far is in land at Tin Shui Wai, near Yuen Long, in the New Territories. On 22 September 1980, Beehive Enterprises, a company owned 51% by China Resources was the only bidder for the 52.5 million sq. ft. site at Tin Shui Wai. Whilst the present site cost HK$600 million at the auction, commercial speculation puts the value of the land at some HK$4,200 million once its development potential is realised. The owners of the site, now operating under the name of Mighty City, have announced that it hopes to develop the site into a new town with a population of some 520,000 by 1992.
17.
China-controlled banks in Hong Kong have over the past year also undergone a change in policy, and are now entering the market for both domestic and offshore financing on a par with the commercial practice of the non-communist banks. The Bank of China, for example, was one of the participants in raising a syndicated loan for the construction of a US$20 million cement plant to be constructed at Tap Shek Kok in the New Territories. Such activity is likely to increase. Hong Kong presently accommodates a number of deposit-taking agencies (e.g. Guangdong Trust and Investment Corporation) and 13 banks (with 120 branches) controlled by China. These provide a ready source for China's short-term deposit borrowing. It is estimated that the amount China borrowed from Hong Kong reserves in 1979 reached some US$1,000 million.
Hong Kong as a model
18.
A good deal of the investment described above has the secondary function of facilitating China's use of Hong Kong as a model and a base in which Chinese companies can learn from, and experiment with, modern financing, business and production methods. As the authorities in the neighbouring special economic zone of Shenzhen get to grips with the intricacies of detailed town planning and development, a keen interest has been demonstrated in learning from Hong Kong's experience of the development of new towns in the New Territories. Such interests have promoted an increasing number of visits by official and other delegations from China. The membership of delegations has generally included economic, planning or technical experts. At present, an average of about 58 new groups (some 350 individuals) from China arrive in Hong Kong each month.
19.
A typical example of the use of Hong Kong as a model is illustrated by the opening in November last
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