APPENDIX 2 British Investment in Hong Kong

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There are a number of different ways of calculating British investment in Hong Kong. Official UK statistics show a net stock of direct investment of over 2 billion pounds. While no doubt arithmetically correct, this approach tells only a small part of the story. Perhaps a better measure of the overall significance of British investment in Hong Kong is to look at the capital that is actually controlled by British business. The market capitalisations of British managed and controlled companies listed in Hong Kong are set out in the following table. This again does not show the full picture (and can be adjusted to eliminate cross holdings etc.) but the quantum is such as to indicate that British-controlled investment in Hong Kong should be regarded as an important national resource.

BRITISH MANAGED AND CONTROLLED COMPANIES LISTED IN HONG KONG

Company name

Market capitalisation August 1992 pounds sterling (millions)"

Cathay Pacific

China Light & Power

Dairy Farm

HAECO

Hong Kong Telecom

2,399

3,614

1,281

274

6,606

Hongkong & Shanghai Hotels

400

Hongkong Land

2,597

HSBC Holdings

9,100

Jardine International Motor Holdings

281

Jardine Matheson

2,696

Jardine Strategic

1,640

Mandarin Oriental Hotels

279

Swire Pacific

3.648

Total

*Source: Jardine Fleming, Regional earnings guide, August 1992

34,815

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