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returns. In Shenzhen alone, more than 70 industrial
projects were initiated by Hong Kong businessmen during the first half of this year. Most of these projects were
related to the electronics, textiles and plastics
industries.
37.
(b) China's investment in Hong Kong
Local companies of PRC origin have continued to
expand their activities in various economic sectors. In
manufacturing, there are signs that China-related firms
are showing greater interest in medium-sized manufacturing
establishments. For example, Yue Xiu Enterprises Ltd. has invested $10 million to acquire a 35-40% interest in Arkon
Industrial Ltd., a local firm manufacturing torches, flash
lights and metal products. Also, it is reported that an
un-named China-related firm plans to cooperate with Star
Paging Company to produce mobile telephone sets. The
initial investment of this project is estimated to be
around HK$10 million. In June, Tsinlien Co. Ltd. (a firm
associated with the Tianjin municipal authorities)
acquired a 40% interest in King's Dyeing and Weaving Co.
Ltd., a large local textiles and finishing factory. The
technological and management knowhow absorbed from this
company will be transferred to Tianjin.
38.
In the property sector, Yue Xiu Enterprises Ltd.
has recently acquired a site in Wanchai for hotel
development. The land cost is around HK$70 million, and
an additional HK$300 million will be invested in building
the hotel. In another development, China International
Trust and Investment Corporation (CITIC) has bought Asian
House in Wanchai for HK$350 million. It has been reported
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