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MDHIAN 5578
22 PROJECTS WERE COMPLETED, AGAINST 3 CANCELLED, AFTER JUNE 1989 IS A GOOD INDICATOR OF THE POSITIVE ATTITUDE OF JAPANESE INVESTORS.
FINANCIAL SECTOR
5. THE CONTINUED RAPID GROWTH IN THE ACTIVITIES OF JAPANESE FINANCIAL INSTITUTIONS IN HONG KONG SHOWS THAT THEY ARE STILL VERY BULLISH ABOUT INVESTMENT HERE. WE UNDERSTAND FROM JAPANESE BANKERS THAT THEY INTEND TO CONTINUE EXPANDING THEIR BUSINESS IN
HONG KONG. SOME OF THEM ARE TRYING TO PERSUADE MORE TO JOIN THEM
HERE SINCE THIS WILL FACILITATE THEIR OPERATIONS.
6. JAPAN HAS THE BIGGEST FOREIGN BANKING AND SECURITIES PRESENCE IN HONG KONG, COMPRISING 30 LICENSED BANKS (ONE-FIFTH OF THE TOTAL), 11 RESTRICTED LICENCE BANKS (ONE-FOURTH), 29 DEPOSIT- TAKING COMPANIES (ONE-SIXTH), 32 BANK REPRESENTATIVE OFFICES CONE-FIFTH) AND 45 SECURITIES HOUSES CONE-THIRD). JAPANESE
INSTITUTIONS ACCOUNT FOR ABOUT 56 PER CENT OF THE TOTAL ASSETS OF HONG KONG'S BANKING SECTOR.
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IN THE FIRST EIGHT MONTHS OF 1990, THE SCALE OF OPERATIONS JAPANESE BANKS BY ASSET SIZE GREW BY 16.3 PER CENT, LOANS AND ADVANCES BY 41.4 PER CENT AND LOANS EXTENDED FOR DOMESTIC USE BY 13.4 PER CENT. ALL THESE FIGURES ARE SUBSTANTIALLY HIGHER THAN THE RESPECTIVE OVERALL INDUSTRIAL AVERAGES. SO FAR THIS YEAR, FOUR MORE JAPANESE INSTITUTIONS HAVE ESTABLISHED THEIR PRESENCE HERE: TWO JAPANESE OWNED DEPOSIT-TAKING COMPANIES HAVE UPGRADED THEIR STATUS TO RESTRICTED LICENCE BANKS, AND ONE APPLICATION FOR A BANKING LICENCE IS CURRENTLY IN TRAIN. IN AUGUST, SUMITOMO LIFE INSURANCE ACQUIRED A 9.1 PER CENT STAKE IN A LOCAL BANK HOLDING COMPANY WHICH OWNS 100 PER CENT OF THE LOCALLY INCORPORATED DAH SING BANK.
8. SIMILAR GROWTH IS EVIDENT IN THE SECURITIES FIELD. SINCE JUNE 1989, SEVEN JAPANESE SECURITIES DEALERS HAVE COME TO HONG KONG. THREE OF THESE HAVE CHOSEN HONG KONG AS THEIR REGIONAL HEADQUARTERS. DESPITE THE COLLAPSE OF THE JAPANESE STOCK MARKET, 3 MORE JAPANESE SECURITIES DEALERS HAVE ENTERED THE HONG KONG MARKET IN THE PAST SIX MONTHS.
9. THE JAPANESE PRESENCE IN HONG KONG INSURANCE MARKET HAS BEEN STABLE IN RECENT YEARS. THERE ARE 8 JAPANESE AUTHORISED INSURERS IN HONG KONG. THEY REMAIN FAIRLY ACTIVE AND THERE ARE NO SIGNS OF WITHDRAWAL.
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