TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 83

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43.

The business opportunities presented by China are likely to provide a substantial cushion against the prospect of Tokyo reducing Hong Kong's importance as a financial centre in the longer term. While estimates

vary, some bankers have suggested that China may need as much as US$200 billion in foreign exchange loans over the

next 15 years to accomplish its goals in terms of economic

development. Many multi-national banks have set up

branches or representative offices in Hong Kong,

apparently in the hope of taking a share of this enonmous

financing requirement, apart from establishing a base for their regional operations. The arrival of these additional banks contributes to Hong Kong's development into a major financial centre in the east Asian region. However, if business opportunities in China turn out to be significantly below expectations, this is likely to have

an unfavourable impact on Hong Kong's role and status as a

regional financial centre.

44.

(h) Professional and other business services

In

Complementary to the growth in merchandise

trade, tourism, investment and other business activities

between Hong Kong and China, there has been a concurrent

increase in the use of professional and other business services in Hong Kong by PRC-controlled enterprises. addition, the Chinese government has also engaged consultants from Hong Kong in the planning of

infrastructural projects in China. Given that Hong Kong

is well ahead of China in these areas, this trend is

likely to continue even in the longer term. Moreover,

share of the business of these sectors that is

attributable to China is likely to increase further in the coming years.

the

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