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1.
GENERAL
The Governor, Sir Murray MacLehose, said at the annual dinner party of the General Chamber of Commerce on December 17, 1980 that increased investment in Hong Kong by China-based companies would carry Hong Kong through the economic recession.
He expected that relations between Hong Kong and China would continue to grow and said increased investment in Hong Kong by China-based companies would be welcomed.
2.
It was reported on January 22, 1981 that following China's adoption of an open policy in foreign trade, more and more Chinese provincial and local companies have set up offices in Hong Kong. In November 1980, the China Building Development Company Limited was set up and registered here as an independent firm. At the end of December, the Techscien Engineering Company Limited was established. Most recently, the Guangdong Enterprises Limited, sole agents of all Guangdong economic organisations in Hong Kong, was officially opened.
3.
A special programme titled "China Investment" in RTHK's "The Common Sense" was broadcast on March 8, 1981. People in charge of the Bank of China, China Resources and Kiu Kwong Development were interviewed and it was said that China's investment in Hong Kong was increasing and that this would boost overseas investors' confidence in Hong Kong.
At present, Hong Kong has become China's main outlet for its exports and re- exports. According to sources, statistics for 1980 showed that the total value of meat, vegetables, garments, textile products and other consumer products imported from China was $22 000 million. China gained HK$20 000 million in foreign currencies for the whole year through Hong Kong. This represented only earnings from the visible trade. Earnings from the invisible trade could not be estimated.
Earnings from the invisible trade came mainly from the massive investment by Hong Kong branches of firms in China in various trades and industries of Hong Kong.
A spokesman for the Bank of China said the Chinese Government had ordered that firms representing China could invest in any profitable trade in Hong Kong.
A spokesman for China Resources Company and Kiu Kwong Development disclosed that China's plans for investment in Hong Kong included land investments, a cement factory, a tin-making factory and general trade.
At present, firms representing China in Hong Kong invest heavily in land developments and they co-operate with other consortia to develop Tin Shui Wai in Yuen Long, the Lu Yang Sun Tsuen (B) residential development project above the Tsuen Wan Mass Transit Railway station, the high-class residential complex above Sha Tin's Kowloon-Canton Railway depot and other commercial projects.
Business dealings of the 13 Chinese banks are wide-ranging. The Bank of China in Hong Kong has received orders from China to expand its business. The bank started using computers two years ago, and these were jointly operated with the other 12 Chinese banks here. Up to the present, apart from expanding its financial services, the bank has taken a step forward in participating in international loan activities.
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