CONFIDENTIAL B
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in respect of managerial, production and technological skills in light manufacturing industries. The most notable example of China's recent investment in Hong Kong's manufacturing sector is China Resources (Holdings) Co. Ltd.'s acquisition of a controlling stake (34.8%) in Conic Investment Ltd. through Sin King Enterprises Co. Ltd. which is a joint venture between China Resources and the Bank of China. The deal was completed in January 1984.
17.
It appears that after significant evolutionary changes in the past five to seven years, China's investment in Hong Kong has become diversified and involves practically every major economic sector of Hong Kong. Two recent events suggest that this trend towards diversification is still continuing. First, China Resources Purchasing Co. Ltd., a new subsidiary of China Resources (Holding) Co. Ltd., has recently started a move to open a chain of supermarkets with a view to capturing a portion of the supermarket trade; now mainly shared between Wellcome and Park'n Shop. China Resources Purchasing Co. Ltd. has indicated that it intends to open a total of 30 supermarkets in the next three years, each of which on average involves a cost of HK$5 million. Second, Chung Mao Securities Ltd., a joint venture between Hsin Hau Trust, Saving and Commercial Bank Ltd., Po Sang Bank Ltd. and one local company, was incorporated in October 1983 with a nominal capital of HK$5 million. Contrary to China's traditionally negative attitude towards speculative financial activity, this newly formed company engages in the brokerage of shares, stocks and
commodities.
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