sector. Though very difficult to quantify it is very probable that the total annual invisible earnings by UK companies in Hong Kong exceed £1,000m.
INVESTMENT IN HONG KONG
6 Hong Kong takes the largest proportion of British investment in Asia. There are over 400 British companies established in Hong Kong and a further 1,000 have significant British investment or management. Net assets of British companies registered and based in Hong Kong are thought to be worth between £2.5 Bln and £3 Bln; total net assets of companies controlled from Britain are worth at least £6 bln and the total gross stock market value of British owned, controlled or managed companies is put at over £20 bln. One of Britain's largest commercial stakes in Hong Kong is Cable and Wireless' ownership of the Hong Kong Telephone Co which holds monopolies for domestic calls until 1995 and for international calls until 2006.
7
Foreign investment in Hong Kong's manufacturing industries grew to almost HK $30 Bln last year, but investment from Britain fell for the first time in more than a decade. However Britain remained in 4th place as a long term source accounting for 7% of the total invested in local manufacturing. The US was top investor, followed by Japan and then China.
UK RETAILERS
8 In the last few years UK retailers have been establishing themselves in Hong Kong in increasing numbers. Marks and Spencer have opened five stores since 1988. (Due to excessive rent rises their smallest outlet has however recently closed down.) Alfred Dunhill have four stores and many others like Body Shop, Crabtree and Evelyn, Royal Doulton, Church, Jaeger, Gieves & Hawkes and Burberry's have their own outlets either through franchising/licensing or joint venture arrangements.
DTI SCHEMES AND PROMOTIONS
9 The BOTB's Forward Plan accords high priority to Hong Kong as one of the key Pacific Rim markets. Sectoral priorities for Hong Kong are: Category one airport equipment and development, computer hardware and software, pollution control. Category two: specialised organic chemicals, medical equipment and pharmaceuticals, giftware, building materials, textiles. Category three:
ADP/office automation equipment, CADCAM/ industrial automation/robotics, clothing, jewellery, food and beverages.
10 In 1991/2 there will be 12 DTI-supported missions visiting Hong Kong; and 9 joint ventures at international exhibitions. The Duke of Kent has agreed to open Polmet, an environmental and pollution control Conference and Exhibition in December, at which the British Water Industries Group will be organising a jv. This Autumn Wellcome Supermarkets and Oliver's Delicatessen will be