TNAG-1640-FCO40-2287-Economic-situation-in-Hong-Kong-1987 — Page 96

The Changing Corporate Scene

Introduction

The "Hongs" known in financial circles to be under "British" control in days of yore were

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Cathay Pacific Airways Limited

China Light and Power Company Limited · Green Island Cement Company Limited Hong Kong and China Gas Company Limited Hong Kong and Shanghai Banking Corporation Hong Kong Electric Holdings Limited Hong Kong Land Company Limited

Hong Kong Telephone Company Limited

Hutchison Whampoa Limited and its subsidiary

and associated companies

Jardine Matheson Holdings Limited

Swire Pacific Limited

Wharf (Holdings) Limited and its subsidiary

and associated companies

Wheelock Marden and Company Limited and its

subsidiary and associated companies.

With the emergence of prominent Chinese businessmen, the most notable ones being Mr Li Ka-shing, Sir Yue-kong Pao and Mr Lee Shau-keę, control of some of the former British "Hongs" has changed.

Companies presently under Mr Li Ka-shing's control

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Mr Li Ka-shing, Chairman of Cheung Kong Holdings Limited ("Cheung Kong") made his first move to acquire control of a British "Hong" in 1979. Cheung Kong acquired a 22.4% holding in Hutchison Whampoa Limited ("HWL") from Hong Kong and Shanghai Banking Corporation as a long term investment in 1979. By the end of December 1986, Cheung Kong had increased its holdings in HWL to 36.56%. Mr Li Ka-shing has been Chairman of HWL since 1980.

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As a result of Cheung Kong assuming control of HWL, HWL's subsidiaries and associated companies also came under Cheung Kong. These include Hong Kong International Terminals Limited (an 89% owned subsidiary of HWL operating container terminals at Kwai Chung), and Hong Kong United Dockyards Limited (50% owned by HWL and operating a ship repair business).

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