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The Standard business page on 12 January said China, with the world's last major unexplored offshore oil reserves, would begin this year to award exploration contracts to foreign oil companies, industry analysts told UPI. China was considering bids from 33 foreign oil companies and consortia for rights to explore an area of the South China Sea.
The Standard reported that a HK company, Miramar Hotel, had clinched an agreement to set up a US$2 million food manufacturing plant in Guangzhou catering for foreign personnel involved in oil exploration work in the South China Sea.
China aims to have closer economic ties with HK: The SCMP Business News of 12 January quoted the president of the All-China Federation of Industry and Commerce, Mr. Hu Ziang, saying China lay great store in the continued prosperity of HK's economy. Mr. Hu was in HK heading a mission from the Federation which the SCMP described as the most important industry and commerce organisation in China. He expected closer economic co-operation, and the Federation for its part would give full support to the development of HK's trade. The CMA president, Mr. Ngai Shiu-kit, stressed the CMA's confidence in the continued prosperity and stability of HK and in its functioning as a free economy and trade and financial centre. There was no doubt that HK would again play a definite role in opening up dual channels of trade (with China) and economic cooperation. Wen Wei Po said editorially the exchange of visits between HK and China would enhance mutual understanding and would explore more channels of co-operation which would promote the prosperity of the two places. It would also help clear the doubts hanging over HK's future.
HK Land seeks biggest credit ever: The Asian Wall Street Journal reported in its edition of 14/15 January that HK Land Co, the colony's biggest property concern, was seeking an eight-year loan of as much as HK$4 billion, the largest commercial loan ever arranged for a HK company. Sources said the Company planned to use the money to replace existing short term loans. One source was quoted saying it was prudent for HK Land to be seen to be totally above all the nervousness that was around. It was a small price to pay to sleep at night.
China getting benefits from HK: The January issue of the monthly economic report published by the HK Bank said China could not afford to overlook the considerable benefits it was deriving from HK and its need for HK would grow greater in the future. In striving to raise the living standards of its people, China would give priority to pragmatism over idealism. It also noted that the outcome of the Sino-British talks hinged on economic relations between HK and China. The report estimated that between US$400 and $600 million was remitted every year by HK residents to their friends and relatives in China. With the growing number of immigrants from China, the figure would rise. HK also played an important role in China's modernisation in terms of both exports and imports. Besides. 90 per cent of investors in Shenzhen came from HK.
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