ROYAKQ
4:
PRESENT LEVEL OF CHINESE ACTIVITY IN HONG KONG?
It is clear that Chinese investment in Hong Kong is large and
increasing. Has been estimated that the cumulative total of such
investment is between US$6 and US$10 billion. No reliable estimate
is available because it is very difficult to trace the ultimate
ownership of physical and financial assets in Hong Kong. But by now
China may well be the largest single external investor in the Hong
Kong economy. In the maufacturing sector China accounts for around
8 percent of all external investment, second to the United States
and Japan.
Two examples are:
The Bank of China group which is the second largest backing
group in Hong Kong, after the Hong Kong Bank group. It has
recently built a major new Hong Kong headquarters building in the Central District of Hong Kong. It also undertook to participate
in the second HK$2 billion rescue package for the Hong Kong
Futures Exchange in later 1997.
- The China Industrial Trust and Investment Corporation, which
now has a 12.5% stake in Cathay Pacific Airways. In June 1986
the Corporation launched a rescue bid for the Ka Wah Bank which
had fallen into financial difficulties.
The number of Chinese visiting Hong Kong on official CPG
passports is steadily increasing. There were 9233 here on 31 December 1988 (including those in employment or training, or on temporary stay). A 46 percent increase on the figure for 31 December 1987.
The figures for non-official visits are 120089 for two way permit-holders in 1988 (compared with 85673 for 1987) and 110445 in group tours in 1988 (Compared with 88369 in 1987).
Access to business' opportunities and economic resources in China. have been major factors in sustaining rapid growth of Hong Kong's