1989-03-16 14:53 BRITISH TRADE COMMISSION
4-
852 5 845 2870 P.06
sector. In the absence of more extensive local information, these manufacturing
figures have often been misread as total investment in all sectors. This has
led to considerable misunderstanding. Generally, British companies have
invested less in the manufacturing sector and more elsewhere in the economy.
At the end of 1986 British companies accounted for 7.8 percent (at book value)
of the foreign-held fixed assets in manufacturing. However total British
investment throughout the economy was a much greater proportion than this.
8. Even within the manufacturing sector, the local figures have not given a
comprehensive picture of British involvement. They have not included all the
investment made through locally-incorporated companies. As most British
companies operating in Hong Kong choose to incorporate here, this has meant
that much of their investment and that of their subsidiaries has not appeared
as British. For example, almost all the investment of the Swire Group in Hong
Kong is made through Swire Pacific or its other subsidiaries and has not shown
up as a British (or part-British) investment.
9.
It is sometimes suggested that there has been little new investment from
Britain in recent years. The details at para 6 show this is not so, In the
last year there has been significant activity including aquisitions by the
Beazer Group and by Polypeck International; P & O are looking for new
opportunities in Hong Kong. In manufacturing, Technophone will soon begin
producing mobile telephones at a local plant; and new ventures have included
one by Pilkington. Further evidence of British activity has been the opening
in the last two years of about 12 new retail stores. Reinvestment by existing
British companies has been considerable and is continuing at a high level.