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G.F. 326
CONFIDENTIAL #2
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30.
Recent examples of fund raising activities in Hong Kong by China include, in particular, the arrangement of a syndicated loan amounting to US$475 million to finance the development of the Pingshuo Coalfield in
Shanxi. A number of international banks including the
Royal Bank of Canada, the Bank of America, Credit Lyonnais
and the Industrial Bank of Japan, together with the Bank of China are the lead managers of this loan. More than 40
other banks are likely to participate. China
International Trust and Investment Corporation (CITIC) has
launched a seven-year fixed rate bond issue worth HK$400 million. The money raised will be used to finance CITIC's
involvement in the construction of the Eastern Harbour
Crossing as well as CITIC's other overseas investment
projects. In addition, the Hong Kong Branch of the Guangdong Provincial Bank has issued Hong Kong dollar
certificates of deposit totalling HK$100 million to finance the expansion of the Bank's business.
31.
It is reported that the four locally incorporated banks in the Bank of China group, namely the Nanyang Commercial Bank, Po Sang Bank, Hua Chiao Commercial Bank and Chiyu Bank Corporation, are currently
studying the feasibility of a public listing. China is likely to adopt a cautious approach to this development
because public listing of China-interest companies in Hong Kong would involve the disclosure of information regarding the use of funds and business performance of the companies
concerned. Further, the financial accounting systems of
those companies would have to undergo fundamental changes to come into line with the standards adopted in Hong
Kong. Nevertheless, because Hong Kong's capital markets
can serve as a convenient base for China to raise funds
and to train its personnel in financial management, a public listing and other forms of financial participation
CONFIDENTIAL #≈
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