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La Lat
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23.
In view of such limited past developments, the
recent acquisition of a controlling stake in Conic
Investment Ltd. by Sin King Enterprises Co. Ltd. has been
widely regarded as the first significant step made by
China-interest companies to establish a firm footing in Hong Kong' light manufacturing sector. It appears that
China is most interested in those industries which involve
high technology. Hence electronic firms and computer
firms are thought likely to be candidates for further
takeover moves by China-interest companies. In this
connection, it is reported that Chinese interests have
been seeking to appoint local consultants to identify
local firms in high technology areas that would be
suitable takeover candidates. While China may have its
own objectives in investing in the manufacturing sector of
Hong Kong, the recent export-led recovery experienced by
the local economy does suggest that, even on pure economic
grounds, manufacturing investment has become more
attractive, probably more so than at any time in the past
five years.
24.
A short-list (not intended to be exhaustive) of
China's major manufacturing investments in Hong Kong is
attached to this paper as Appendix II.
Conclusion
25.
It can be concluded that China's investment in
Hong Kong has grown rapidly in recent years and has become increasingly diversified into practically every major economic sector of Hong Kong. The recent trend shows a
marked shift of emphasis in favour of manufacturing
investment, particularly investment involving high technology. But it is still too early to make a full
assessment of the significance of this.
NG
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