6 F 326

20

venture agreement was signed between Howeton (a Hong Kong

firm) and Xinguang Industrial Products Import and Export

Corporation of Sichuan to produce advanced

telecommunication systems to China. In November, the Hong

Kong based Indar group of companies entered into

agreements with China to jointly build four hotels (two in

Shanghai, one in Beijing and one in Xian) involving a

total investment of US$180 million.

+.

In

36.

In January 1986, Lin-Wa Engineering Co. Ltd. a

Hong Kong base joint venture between Ryoden Machinery Co.

Ltd. and China Overseas Building Development Co. made

public a plan to build an international hotel in Suzhou.

The US$18 million project will be 70% financed by the Bank

of Communications (a CSOB) and Mitsubishi Bank Ltd.

February, Shanghai International Leasing Co. (jointly

owned by CITIC, Shanghai Investment and Trust Corporation,

the Shanghai branch of the Bank of China and the Industrial and Commercial Bank of China) signed a co-operation agreement with Trilease (a joint venture

between the Hong Kong branch of the Bank of China, Bank of

East Asia and Societe Generale). The latter will provide

a full package of leasing services and modern management

skills to the expanding leasing markets in the Shanghai area and provinces like Jingsu, Zhejiang, Anhui and

Jianxi. There is also the joint venture between China and

Hong Kong's Hopewell Holdings for the construction of the

Shenzhen-Guangzhou-Zuhai highway of HK$3.3 billion.

37.

Recent reports on investments by Hong Kong firms

in various provinces and/or cities in China include:

(i)

Shanghai: Hong Kong firms have signed 70 joint venture agreements, with a total

pledged investment of US$322 million,

since 1978. These represent 36.3% of

CONFIDENTIAL #3

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