10
18.
In the midst of rapid growth of China's
investments in Hong Kong, the China state-controlled banks
(CSCBS) headed by the Bank of China have remained the main
source of financial support for China-related economic
activities and the CSCBS have also experienced rapid
expansion in their structure and operation. In order to
meet the increasing demand for their financial services, many CSCBS have strengthened their capitalization in
recent years. In terms of total asset values, Bank of
China was ranked 13th (the Hongkong & Shanghai Banking
Corporation was 10th) in 1982 among all banks registered
in Asia. It is reported that about 25% to 35% of the financial business carried out in Hong Kong is
attributable to the CSCB group.
China's investment in Hong Kong's property sector
19.
Activity related to developing premises for the use of China-interest organisation represents a very substantial part of China's investment in Hong Kong's property sector; notable examples being the new Bank of
China Building and the China Resources Building. In
addition to real estate developments of this nature,
China-interest companies have also engaged in other
property developments and sometimes even in property
trading since 1977. Such activity peaked in the period 1979 to 1981 during the property boom. Kiu Kwong
Investment Corporation Ltd. was the main company used as
the vehicle for property investment during this period.
But the most ambitious project was certainly that related to Tin Shui Wai launched in 1981 (even though it was trimmed down considerably in 1982) by Mightycity Company,
in which the then China Resources Company had a
G.F. 326
CONFIDENTIAL # 3