UNCLASSIFIED
031737 MDLIAN 0536
UNCLASSIFIED
FM BTC HONG KONG
TO ROUTINE DTI
TELNO OTTER 119 OF 20093OZ JUNE 89
INFO ROUTINE FCO
INFO SAVING PEKING
FOR HALL, OT2, DTI
HKC090/2
f
ECONOMIC CLIMATE IN HONG KONG
TOP COPY Q DIST?
1. THREE MAJOR RIGHTS ISSUES HAVE BEEN CANCELLED BY LARGE INDUSTRIAL GROUPS HERE AS A RESULT OF THE CHANGING ECONOMIC CLIMATE BROUGHT ABOUT BY EVENTS IN CHINA.
2. UNIVERSAL APPLIANCES HAS ANNOUNCED THE CANCELLATION OF HKD54M RIGHTS ISSUE, CLAIMING THAT THE UNDERWRITER, SOUTH CHINA BROKERAGE, HAD TERMINATED THE AGREEMENT ON THE
GROUNDS OF FORCE MAJEURE. THE COMPANY CARRIES OUT 85 PER CENT OF ITS PRODUCTION IN CHINA, EMPLOYING 2,500 WORKERS IN SHENZHEN MAKING COMPUTER ACCESSORIES AND TELECOMMUNICATION PRODUCTS, AND TVS IN HANGZHOU. HOPEWELL HOLDINGS (GORDON WU) CALLED OFF A HKD3.8 BILLION ISSUE. MOST OF THAT COMPANY'S MAJOR CONTRACTS CURRENTLY ARE IN GUANGDONG. K WAH STONES HAS ALSO ANNOUNCED THE SCRAPPING OF A HKD184 M RIGHTS ISSUE. THEY ALSO HAVE FACTORIES IN SOUTHERN CHINA.
HEAP
YYYY
MAIN
.HK AGREEMENT
LIMITED
HKD
HD/FED
HD/PLANNERS
PUSD
57
DISTRIBUTION
67
PAGE
PS
PS/LORD GLENARTHUR
PS/MR EGGAR
PS/PUS
MR GILLMORE
MR WATTS
1
UNCLASSIFIED