.F
15
29.
Despite these setbacks, some notable projects
involving Hong Kong interests are being implemented.
the banking sector, following the Hongkong and Shanghai
Banking Corporation, the Bank of East Asia has opened a
branch in Shenzhen. China's first joint venture bank,
Xiamen International Bank, has also begun operation. It is a joint venture between Fujian Investment and
Enterprises Corporation, the Fujian branch of the China
-Industrial and Commercial Bank, Xiamen Special Economic
Zone Construction and Development Company, and Panin Holdings Limited (a Hong Kong based firm with Indonesian
interest). As regards other areas of development, the
China Travel Service (Holdings) Hong Kong Ltd. is said to
be drawing up a preliminary plan to develop an 'Overseas
Chinese Town' in Shenzhen, which will be similar to the
Shekou Industrial Zone. Most of the funds for this will
be derived from overseas Chinese investors.
(b) China's investments in Hong Kong
30.
One of the most widely publicized cases of China's investment in Hong Kong in recent months is the
involvement of China International Trust and Investment
Corporation (CITIC) in a lifeboat operation to rescue Ka
Wah Bank. Hit by bad debts and rumours, Ka Wah Bank
originally sought a capital injection from AMEV N.V., a
Netherlands-based company and Kaihin Enterprises Co. Ltd., which is a 50 50 joint venture between a Singapore company and China Hwa Jian Company, a state-run enterprise
under the State Council's Overseas Chinese Affairs
uffice. However, this plan was drastically amended in
January 1986 when it was announced that CITIC would
acquire a majority stake in Ka Wah Bank after a capital restructuring of the bank. CITIC, an enterprise directly
CONFIDENTIAL #