G.F. 326
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18
problems. Besides, a number of other measures are being
considered. (Details of these measures can be found in
the concluding section of CRC INF 22/86 'Problems facing
Sino-foreign joint ventures in China'.)
28.
Notwithstanding the recent slowdown in foreign
investment, there are several notable investment projects involving Hong Kong interests. In the banking sector,
Bank of East Asia has joined with Sumitomo Bank and Nomura
Securities Co. Ltd. of Japan, Security Pacific Bank of the
U.S.A. and Bank of China (Shenzhen Branch) to set up China
International Finance Co. Ltd. in Shenzhen. This joint
venture will be engaged mainly in merchant banking.
29.
In the manufacturing sector, there are signs
that the shift of some labour-intensive and land-intensive
manufacturing processes to China has continued. Shell
Electric Manufacturing (Holdings) Co. Ltd., for instance, is going to invest HK$20 million to build a 25,000 m2 2
factory in Guangdong. The labour intensive part of the
manufacture of ceiling fans and micro-wave ovens will be
moved to this new factory.
(b) China's investment in Hong Kong
30.
China's investment in Hong Kong has further
expanded and diversified in recent months. Within the
Bank of China Group, eight of the banks which are
incorporated in China have increased their registered
capital by 50% 66%. In recent years, the Group has been much more active in retail banking and it now appears to
be stepping up its activities in merchant banking
business, especially in trust fund management. To cite an example, the Bank of Communications and the Nanyang Bank
are going to collaborate with Manufacturers Hanover of the
U.S.A. to introduce a scheme for managing the provident funds of individual enterprises.
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