CONFIDENTIAL
162771
MDHIAN
HONG KONG MIDDLE CLASS THEY MUST HAVE CONFIDENCE IN THE FUTURE. THIS YEAR BOTH ISETAN AND JUSCO HAVE ANNOUNCED NEW EXPANSIONS, THE LATTER PLANNING TO BUILD A SERIES OF 15-16 MINI DEPARTMENT STORES. SEIYU AND YAOCHAN, TWO OTHER LARGE RETAIL GROUPS HAD EARLIER TAKEN A SIMILAR POSITIVE VIEW. THE COUNCIL SEE NO SIGNS OF COMPANIES WITHDRAWING FROM ALREADY ANNOUNCED INVESTMENTS THOUGH RECENTLY THEY HAVE DETECTED SOME CAUTION AMONG JAPANESE CONTACTS OVER NEW INVESTMENTS FOR PURELY DOMESTIC REASONS RELATING TO THE TIGHTENING FINANCIAL SITUATION HERE. A COPY OFLTHE COUNCIL'S LIST OF NEW AND CURRENT INVESTMENT PROJECTS IN HONG KONG, WITH THE JAPANESE INVESTMENTS SIDELINED, ALSO FOLLOWS BY FAX TO HKD.
4.
BANKING CONTACTS HERE INCLUDING THE HONG KONG AND SHANGHAI BANK, SAY THEY HAVE DETECTED NO RECENT CHANGE IN JAPANESE SENTIMENT TOWARDS HONG KONG. WARDLEYS WHO PROMOTE JAPANESE REAL ESTATE DEALS IN HONG KONG SAY HOWEVER THEY PERSONALLY HAVE EXPERIENCED SOME RECENT SLOWING OF INTEREST.
THEY ATTRIBUTE THIS TO THE JAPANESE BEING UNABLE TO FIND
THE KIND OF INVESTMENT PROPERTY THEY WANT AT PRICES THEY
ARE WILLING TO PAY. THEY SAY THE VERY TOP SITES ARE NOT AVAILABLE TO JAPANESE INVESTORS AND THAT RETAILERS LIKE JUSCO
AND HOTELIERS LIKE ANA HAVE BEEN KEEN TO BUY BUT HAVE FELT PRICES WERE TOO HIGH. IN THEIR STCOKS BUSINESS, WARDLEYS SAY THAT THEIR JAPANESE CLIENTS SHOW NO SIGNS OF WITHDRAWING
THEIR MONEY FROM THE HONG KONG STOCK MARKET.
5.
IN SUM, WE CAN FIND NO HARD EVIDENCE TO SUPPORT HENRY KESWICK'S VIEW OF JAPANESE ATTITUDES. WE WONDER IF
IT IS RELATED TO SOME PARTICULAR JARDINES EXPERIENCE.
WHITEHEAD
YYYY
ΜΑΙΝ
25
LIMITED
HKD
FED
ECONOMIC ADV
N N N N
DISTRIBUTION
25
MR MCLAREN
MR BURNS
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