C.F. 326

13

hotel construction (e.g. the Shanghai Hilton and the

Dalian Furama Hotel) and industrial ventures in the Shekou

Special Economic Zone.

25.

Investments in or lendings to industrial

undertakings: the Bank of China Group has shown a growing interest in the manufacturing sector. For instance, in 1984, the Bank of China joined with Sin King Enterprises Co. Ltd. and China Resources to acquire a controlling interest in Conic Investment Ltd. for HK$178 million.

stment Ltd. addition, the Bank of China Group recently reported that it had extended 6,600 new loans to the industrial sector

in 1985. The amount of these loans outstanding at the end of 1985 was HK$2.2 billion, more than 18% higher than in

1984.

In

26.

Financial and related business services: in

October 1983, Sin Hua Trust, Savings and Commercial Bank

and Po Sang Bank (both CSOBS) jointly established Chung Mao Securities Ltd. to engage in the brokerage of shares, stocks and commodities (an area the Bank of China Group never touched in the past). Other CSOBS like Nanyang Commercial Bank, Yien Yieh Commercial Bank, and Kincheng Banking Corporation are providing similar services, either through Chung Mao Securities Ltd. or through other local

brokers. Further new financial services were also

introduced. In May 1984, Gold Pally Investment Co. Ltd.,

a hire-purchase finance company, was set up by Everbright and two CSOBS to provide finance facilities for the purchase of home appliances and furniture. In June 1984, China Development Finance Co. Ltd., a registered DTC under

the Bank of China, made a HK$300 million medium term loan

to MTRC. In November 1984, the China-owned China Life

Insurance Co. Ltd. commenced business in Hong Kong with an initial capital of RMB¥5 million. In December 1984, a

CONFIDENTIAL #≈

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