XN000022-1988-02-05 — Page 6

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FRIDAY, FEBRUARY 5, 1988

THAT HOPED

THE GROWTH

THE

AND

AVAILABILITY

DEVELOPMENT

OF

OF VENTURE SMALLER IN AND THE

MR NENDICK SAID HE CAPITAL FUNDS WOULD FOSTER ENTERPRISES AND THUS HELP BROADEN THE TERRITORY'S INDUSTRIAL BASE,

THE

OF NEW TECHNOLOGIES USE ENCOURAGING BY PARTICULAR UPGRADING OF TECHNOLOGY USED IN EXISTING BUSINESSES.

EVOLUTION IS

IF

HONG

MANUFACTURING AN EVER

VITAL "SUCH AN

KONG'S INDUSTRIES ARE TO CONTINUE TO THRIVE IN WHAT MUST BE SEEN AS INCREASINGLY COMPETITIVE WORLD ENVIRONMENT,

11

HE SAID.

STRENGTH

MR NENDICK SAID A TRADITIONAL MANUFACTURING INDUSTRIES HAD BEEN THEIR ABILITY TO CHANGING DEMANDS IN THE MARKET PLACE.

11

TEMPTATION,

OF HONG KONG'S REACT SWIFTLY TO

FOR HOWEVER,

COMPANIES TRUSTED TECHNOLOGY GOODS WHICH UP-MARKET

THEREFORE SUBSTANTIAL

A 'THERE MUST ALWAYS BE WHICH ARE STILL PROFITABLE TO STAY WITH TRIED AND

THE PRODUCTION OF RATHER THAN VENTURE INTO WOULD REQUIRE THE USE OF HIGHER TECHNOLOGY AND CAPITAL INVESTMENT, HE SAID.

"

CRUCIAL IT IS

THAT

HONG OFFSET THE IN LABOUR

KONG

"OVER THE LONG TERM, HOWEVER, IT MANUFACTURERS MOVE UP-MARKET IN THE GOODS THEY PRODUCE TO

TERRITORY'S COMPARATIVE STEADY BROSION OF THE COSTS," HE ADDED.

OF

HONG

MR NENDICK SAID THE PROVISION OF

THE ADVANCEMENT TECHNOLOGY-INTENSIVE PRODUCTS.

PROMOTE

ADVANTAGE

VENTURE CAPITAL KONG'S INDUSTRY

COULD INTO

HELP MORE

"THROUGH THEIR EQUITY PARTICIPATION IN SMALL

CAN FUNDS CAPITAL VENTURE ENTERPRISES, RELATIVELY HIGH RISK PRODUCTS IN THE KNOWLEDGE SUCCESSFUL, THEY WILL BE ABLE TO SHARE IN

AND

MEDIUM-SIZED

THE

PROVIDE THE FINANCE FOR THAT, IF THEY PROVE BY PROFITS GENERATED

THE INVESTMENT.

BY AVOIDING HAVING

HE SAID.

"AT THE SAME TIME THE ENTERPRISE BENEFITS TO SADDLE ITSELF WITH A HEAVY DEBT FINANCING BURDEN,

"

KONG HAD A FAVOURABLE MR NENDICK SAID HE BELIEVED THAT HỌNG ENVIRONMENT FOR VENTURE CAPITAL UNDERTAKINGS TO BE SUCCESSFUL.

"THERE ARE NO EXCHANGE CONTROLS AND THE

THE OF PROFITS MAKES FOREIGN INVESTORS.

PROVISION OF

VENTURE

EASE CAPITAL ATTRACTIVE

OF REPATRIATION

TO

CULTURE

THERE "LOCAL BUSINESS PAUCITY OF LOCAL INVESTORS IN VENTURE CAPITAL FUNDS ONCE

IS FULLY UNDERSTOOD. OUR LOW TAXATION IS AN ADDED GROWTH OF SUCH BUSINESS," HE SAID.

IS

SUCH

THAT

BE NO SHOULD

THE CONCEPT

INCENTIVE FOR THE

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