Jonathan Powell Esq
HKD/F CO
5.
British Embassy PEKING
3 March 1986
1.
2. Copy & Ashton
IN Hallett,
fes
From Blu
3. AA 020/2 pse.
Mrbals 61
M. 573
་
Dear Jonathan,
HONG KONG BUSINESS INVESTMENT IN CHINESE MAINLAND
1. A report in the NCNA Bulletin of 22 February states that, according to figures from the Census and Statistics Department, loans from Hong Kong financial establishments for investment in the Chinese mainland rose by 80% in the last quarter of 1985 over the previous quarter.
2. The report says that over the whole of 1985 these loans totalled HK$6,276m (about US$804.6m). Bankers estimate that 83% of the loans were in foreign currencies mainly US dollars and expect that, as banks step up operations in the mainland, competition will increase. Projects covered by the loans include light industries, hotels and other services. They are concentrated mainly
on cities like Peking, Shanghai and the Shenzhen Sez.
Yous
ever
Pawele.
Pamela Major (Ms) Chancery
cc: C T Wood Esq,
APA, Hong Kong
HKK 020/2
RECEIVED IN REGISTRY
INDES
- 7 MAR 1986
NGISTRY
action. Tokan
AjB Y/3