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2

carried out in а rather conservative and covert manner,

they enjoyed steady growth through the years capitalising

on their respective monopolistic positions.

3.

towards

After 1978, when China adopted a policy attitude

foreign economic relations which was more liberal

by its past standard, trade and other economic links

between Hong Kong and China assumed new vigour and became

increasingly varied and intimate. In line with this

development, Hong Kong recouped its historical role as an

important entrepôt for China's foreign trade. PRC-interest

companies in Hong Kong had also undergone important

changes. Besides stepping

activities in those areas

where they traditionally had vested interest, these

PRC-interest companies also moved into areas like property

investment which, for one reason or another, were

previously kept away. As they faced keener competition in those new areas, their business attitude became more open, outward-looking and market-oriented.

4.

up

Another important change came in 1979. In line with the open door policy, the Chinese government granted the three municipalities (Beijing, Shanghai and Tianjin),

some provincial authorities and some central government ministries the right to engage directly in foreign trade. Furthermore, four coastal cities

Shenzhen, Zhuhai and

-

were designated

Shantou in Guangdong and Xiamen in Fujian

as Special Economic Zones (SEZS), being endowed with

greater autonomy in handling foreign trade and investment.

These new policy measures had in effect diluted the

monopoly positions traditionally enjoyed by companies like China Resources, as more and more PRC-interest companies

came to Hong Kong to do business. Fujian Enterprises (Holdings) Co. Ltd. (Hua Min) and Guangdong Enterprises

Hai)

(Holdings) Ltd.

(Yue

are notable examples of

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