TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 265

G.F. 326

CONFIDENTIAL #3

20

from Hong Kong and Macau

(14)

accounted for at least 50%,

It was

those from the United States 15%, and Japan 8%. reported that half of these 11 500 foreign-funded enterprises approved in China have gone into operation and 85% of these operating enterprises have achieved a profit rate of at least 20%. In the first five months of 1988,

more than 1,500 new foreign-fund enterprises were approved, triple the figure in the same period in 1987.

36.

In industrial development, a number of cases

were worthy of note. First, the Hong Kong Electronics Association plans to develop a two million square metres

industrial estate for electronics firms in Nantou District

in Shenzhen. Total investment would amount to HK$30

million. China will form the land and provide the basic

infrastructure, while the Association will build the

premises, which will be leased for 15-20 years to Hong Kong manufacturers in the electronics field or in supporting industries. The premises may be freely

transferred to other investors. Second, Tian An

International of the Sun Hung Kai Group proposed to develop a 30 hectare industrial district in Shenzhen.

Tian An China has recently raised HK$235 million in the

Hong Kong stock market to undertake new investment in the

Pearl River Delta region and Shenzhen.

37.

(b) China's investment in Hong Kong

A number of investment undertakings by the PRC

interest companies are worthy of note. First, the

(14) Including both local and foreign interest companies

in Hong Kong and Macau.

CONFIDENTIAL # 3