TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 262

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL # 3

17

(b)

Fund raising in Hong Kong

30.

The important role of Hong Kong as a loan syndication centre for China continued, as partly

A few

evidenced by the fund raising exercises undertaken by China in Hong Kong's domestic financial markets. recent examples of these activities are given in the table

below.

Syndicated loans arranged/or being arranged in Hong Kong in recent months

(extracted from press reports between May to July)

Borrower

Amount involved

Anyang Henan Colour Picture Tube Glass

US$95 million

Bulb Co.

Ltd.

Beijing Kunlun

US$63 million

Hotel Ltd.

Beijing Jing bo Hotel Ltd.

US$41.5 million

Beijing Tianpeng Co. Ltd.

US$27 million

Purpose

To finance a glass bulb manufacturing plant in Anyang.

To meet debt repayment.

To fund construction of the hotel.

To finance the construction of the Tianpeng Hotel

In addition, the Bank of Communications has reportedly arranged a number of loans totalling US$700 million to fund development projects in Shanghai.

G.F. 326

CONFIDENTIAL #

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