CONFIDENTIAL #
18
the late 1970s (Table 15) to become the second largest
retail banking group in Hong Kong, after the Hongkong Bank Group. Adopting a more outward looking strategy, the BOC Group's financial activities in Hong Kong have undergone a major change in nature, with a shift from the traditionally China-related banking business to a widely
diversified range of financial services including
mortgaging, loan syndication, brokerage in shares and
securities, issue of certificates of deposit, and trust
fund management.
41.
In line with these changes, all member banks of
the BOC Group have strengthened their capitalization in
recent years (Table 16). The recent take-over of the Ka-wah Bank by CITIC and the Union Bank by China Merchants
Steam Navigation Company (CMSNC) has in effect increased
the number of PRC-controlled banks in Hong Kong to 15,
though these two additions may be more independent of the Bank of China than the original 13. The BOC Group will
continue to be an influential component in Hong Kong's
financial sector.
42.
(iii) The importance of the China dimension
to Hong Kong's development into a regional financial centre
Hong Kong is much better placed than other cities in the east Asian region to serve as a financial services centre for China because of its geographical
proximity, cultural and language ties, the substantial economic relations that have already been established, and
the large amount of direct investment made by Hong Kong
investors in China.
G.F. 326
CONFIDENTIAL ##
No comments yet.
Private notes are available after approval.