TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 95

C.F

2

4.

China's financial activities in Hong Kong have

to

also undergone a major change in nature, as a result of

adopting a more outward looking and liberal strategy.

There is apparently a shift in emphasis from the

traditionally China-related banking business (para. 16)

a widely diversified range of financial and related

non-financial activities. Retail banking services have

been actively expanded (paras. 17 and 18), including the

acceptance of deposits in various foreign currencies and

in European Currency Units (ECUs). Other newly developed

activities include:

(i) the mortgage of residential property

(para. 21);

(ii)

participation in property development

(para. 22);

(iii) participation in syndicated loans (paras.

23 and 24);

(iv) investment in or lendings to industrial

undertakings (para. 25);

CONFIDENTIAL #≈