G.F
326
15
provincial government in an overseas market. In December
1985, China Development Finance and China Investment and
Finance participated in arranging the issue of HK$100
million fixed rate CDs for the Hong Kong branch of the
Royal Bank of Canada. In February 1986, the Bank of Communications (a CSOB) raised HK$250 million through the
issue of fixed-rate CDs. Shortly afterwards there was an
issue of US$100 million five-year fixed rate CDs by the
Bank of China. The issue was lead-managed by Citicorp
International and China Development Finance, with 23-banks committed to join as co-managers. Apart from arranging issues of bonds and CDs in Hong Kong and in overseas financial markets, the amount of commercial paper bought by the Bank of China Group in 1985 rose by 47% compared with 1984. The Group also underwrote 33 Hong Kong dollar paper issues in 1985. These were interpreted by many bankers as a major step by China to upgrade its presence in international capital markets.
28.
It is envisaged that Hong Kong will play an increasingly active role as China continues to stepup its activities in the international money market. Guangzhou International Trust and Investment Corporation is now considering plans to issue bonds in Hong Kong to raise funds for financing construction and development projects in Guangzhou. The Bank of Communications (a CSOB) also
plans to raise HK$400 million through, the issue of CDs.
29.
There have been an increasing number of Chinese Provincial and Municipal Offices set up in Hong Kong
(Table 10), engaging in various activities including, inter alia, trading, property investment and fund raising
through bank loans or by issuing bonds. While these representative offices help to promote commercial and
CONFIDENTIAL #