CONFIDENTIAL # ≈
31
44.
In respect of financial links, Hong Kong has now
secured a foothold in the syndicated loan business with China. However, in fund-raising activities through the flotation of bonds and commercial paper, Hong Kong has encountered competition from Japan and, to a lesser extent, Singapore. A greater degree of external competition is to be expected, as China has recently extended its borrowing activities to the United States and the United Kingdom, following the settlement of its pre-1949 financial liabilities to these two countries. regards fund-raising through the Hong Kong Stock Exchange, a number of China-related companies are apparently showing keen interest. However, it appears unlikely that the major China-interest firms will go public directly in the near future, in view of the problems involved in adapting
their accounting practices and in disclosing company information. It seems more likely for them to seek shell companies as their fund-raising vehicle.
As
Economic Analysis Division
Economic Services Branch Government Secretariat 14 September 1987
2014