VGIABU

BRITISH BUSINESS IN HONG

LAST PAPER

Hkc 12/5

RECEIVED IN REGISTRY 2 APR 1990

DESK

PART II: BRITISH COMPANIES IN HONG KONG, INVESTMENT AND INVISIBLE

EARNINGS

1

The first part of this review of British business interests

in Hong Kong dealt with sales of British merchandise, projects and opportunities.

It noted that British sales in Hong Kong in 1987

reached a record of £1,013m and that our share of the market was

3.1 percent. Later figures are now available. They show that British exports to Hong Kong in 1988 were £1,030m, an increase of

1.7 percent. However, our share of the market fell to 2.6

percent.

2

This second part of the review deals with British companies

in Hong Kong, investment and invisible earnings.

British Companies in Hong Kong

3 The Trade Commission has dealings on a regular basis with

more than 400 British companies established in Hong Kong. Many of

these have local subsidiaries. There are also a large number of

companies that are not wholly owned from Britain but in which

there is significant British investment or management. In all

there is British involvement - through direct control, investment or management in close to a thousand companies in Hong Kong. Additionally, 2,500 British companies have agents here.

British Investment in Hong Kong

4

A considerable amount of British investment in Hong Kong is in well-established companies and groups, some of which have

tended, over the years, to assume more of a Hong Kong identity.

They remain British controlled and managed but they also project a local image. They include the present Hong Kong Telecom Company (75% owned by Cable and Wireless plc), Swire Pacific (27% owned by

the John Swire Group) and Jardines (controlled by the Keswick family of Britain). There are other large groups in Hong Kong

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