large corporations in Hong Kong are pleased with the Agreement Xin
in contrast to many heads of the smaller firms who voice quite strong pessimism. They believe that large firms with their bolster of foreign assets have little to fear but for the small firm, remaining in Hong Kong will be a question of survival and many Chinese entrepreneurs have indicated their intention to leave.
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Frankfurt's financial daily, Börsenzeitung, carried two articles - datelined Hong Kong on the same day. The first commented that the Agreement had not as yet provoked the expected bull market. A series of poor interim results (Jardine Matheson's disappointing half yearly figures, the overdue interim report of Wheelock-Marden showing greatly reduced profits and the weak performance of property development companies) together with the doubts concerning the realisation of the on paper - very positive Agreement, led to twice as many stock market price falls than rises in the last week of September and the first week of October, the reporter notes.
The subject of the second article was the projected investment company to be called Hong Kong Macao International Investment Company, in which prominent Hong Kong businessmen led by Sir Y K Pao are expected to participate together with the Bank of China and China Resources. Although hailed as a "confidence strengthening venture" by The South China Morning Post, many "observers" in Hong Kong reacted negatively according to the author, seeing the move as a possible sign of Chinese interference in Hong Kong's financial independence and an exertion of "gentle but determined pressure" to extract capital from wealthy Hong Kong Chinese who wish to continue to do business in Hong Kong after 1997.
Denmark's left wing daily, Information, also published several articles on the Hong Kong economy, two by their correspondent Bertil Lintner, who delved into several of the problems facing Hong Kong, drawing freely on articles in The New Statesman and The Far Eastern Economic Review. He quoted too the general manager of Denmark's largest investment in Hong Kong, Carlsberg Brewery, who foresees no difficulties for his company in remaining in Hong Kong and remarked that, even when the land now administered by the Hong Kong Industrial Estates Corporation "becomes property of the Chinese state", nothing will change for Carlsberg.
Milan based financial daily, Il Sole 24 Ore, carried an article entitled "Hong Kong Business Prepares Itself to Receive the New Bosses from China" by the head of the Asian desk, Guido Busetto, who affirmed that the business world seems to have regained its confidence but that it, together with the two governments, stands in opposition to the view of the ordinary people who have "illogical but visceral doubts".
Two weekly news/economic magazines, Panorama and Mondo Economico (both from Milan) also carried articles on Hong Kong's future prospects in the light of the Agreement, repeating the well used familiar arguments for and against its various clauses.