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31.
Other Chinese-interest firms apart from the Bank of China Group have also increased their activities in the
financial sector. Modern Concept Company Ltd., 68% of whose shares are owned by China Merchant Steam Navigation Co. Ltd. (CMSNC), has acquired 61.3% of the issued shares
of the Union Bank. This acquisition cost CMSNC about HK$36.7 million. In addition, Guang Xin Enterprise Ltd., a subsidiary of Guangdong International Trust and
Investment Corporation, has joined with Linton Chu and
Company of Hong Kong to form Guang Lee Securities Ltd. This is the third securities firm in Hong Kong set up by a Chinese enterprise and is the first one established by a provincial enterprise. The firm will concentrate on share
trading, fund management, sub-underwriting and debt financing through the issue of commercial paper. On another development, Guangdong Enterprises (Holdings) Co. Ltd. has floated HK$250 million worth of commercial paper to finance the development of textiles and food processing export bases in Guangdong.
32.
In
China-interest firms are also showing a growing interest in investing in the industrial sector. China International Trust and Investment Corporation is considering the possibilities of co-operation with other enterprises to set up a venture capital fund for financing the transfer of advanced technology into Hong Kong. addition, CMSNC has spent HK$170 million to acquire Eurasian Enterprise (a subsidiary of Island Navigation
Corporation Ship Management Limited) to expand its ship repair business. There is also a plan to construct a multi-purpose pier on the site owned by Eurasian Enterprise.
G.F. 326
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