G.F. 326
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Guangdong Postal and Telecommunication Bureau has bought 10 million shares in Hong Kong Telecommunications. Second, three subsidiaries of Yue Xiu Exterprises, the representative office of Guangzhou in Hong Kong are to be floated on the Hong Kong stock market (paragraph 32). Another Chinese group, Guangdong Enterprises (Holding), has also expressed an interest in floating some of its companies on the Hong Kong stock market in due course. Third, Chung Mao Security Ltd. has recently enlarged its registered capital base to HK$20 million from HK$7 million with the injection of new capital from the PRC-interest banks in Hong Kong. It is reported that Chung Mao is now the largest PRC interest stock brokerage firm (in terms of turnover) in Hong Kong. Fourth, Yue Xiu Enterprise Ltd. and Lai Sun Group have agreed to jointly develop a site of nine hectares in Tai Po Tsai in the vicinity of the University of Science and Technology. The site is intended for low rise residential development, pending the outcome of negotiations with Government concerning the change of land use to residential. Fifth, China International Trust and Investment Corporation, together with two Hong Kong companies, Kader Industry Company Ltd. and United Overseas Enterprise Ltd., and an Italian company have undertaken an investment of about HK$500 million to set up a manufacturing complex in the Yuen Long Industrial Estate for the production of plastic
materials. Each of these four partners contributed 25% of the total equity.
(V)
38.
Concluding remarks : implications for the
Hong Kong economy
The growth momentum of China's economy remained
strong in the second quarter of 1988. The main concern is the high and still accelerating rate of inflation. The future prospects for economic reform generally and for
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