TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 152

DAILY REVIEW OF BUSINESS TOPICS AS REPORTED IN THE CHINESE PRESS

Trade Industry & Customs Department Translated by the catchbackwayoflimpiaratxerat

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Realtor

PAJUL

T NO.

(Excerpts from the translation of Ming Pao Editorial, July 5, 74 JUL 1978

INDEX

OFFICER

PA

RE

Act:q

48

+ PURCHASE OF FACTORY BUILDINGS BY MAINLAND INTERESTS

No

The visit to Peking by the Chairman of the Hongkong and Shanghai Bank, Mr. Michael Sandberg,reuses the interest of the people here. For it implies that the leading bank of Hong Kong will play a more important role in China's foreign trade. One wonders whether Mr D.K. Newbigging of the Jardine Group would be going to Peking, too. And Mr.W.R.A. Wyllie of the Hutchison Group and Mr. J. H. Bremridge of the Swire Group? Nevertheless, leftist merchants here are known to be in constant contacts with leading members of Hong Kong's business community.

A recent report said a factory building being constructed in Kwei Chung by a leading Hong Kong firm has been bought by a mainland Chinese company at a priće of over HK$ 50 million. A multi-storey building along Hong Kong's waterfront has also been bought by leftist businessmen. Indications are that China, in spite of the extremely high prices of real estates, is buying buildings in HK to expand

its business here.

On the other hand, China's new attitude has prompted many foreign corpora- tions to send money here to buy HK shares, causing sharp advances in the share prices here. The investors aim not at making quick profit through speculation, they hold a rather optismistic view on HK's future.

The contacts between HK and Peking may be open or otherwise. The two Chinese missions on hotel business and hotel construction which had kept their visits to HK in secret indicate China's interest in tourism and their wish to learn from HK's experiences in this respect.

There are strong indications that a new page will soon be turned in HK's relations with Peking. What are likely to happen include joint ventures in HK, Shunchum or elsewhere in the Mainland, making best use of HK's technical know-

how and the low cost in China,

The fall of the Gang of Four in Peking was followed by a new tendency in the mainland: less politics and more business, which suits HK well. Doing business will certainly be of mutual benefit, economical as well as political. For the more profita China earns in HK, the more assured HK's stability will be.

Issue Number: 51/78

Date: 7.7.78