TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 75

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

CONFIDENTIAL # 3-

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32.

(c) Floating of HK$ bonds in China

Fujian Investment Enterprise Corporation (FIEC) recently launched a HK$ bond issue in Fujian. The bonds, which are in denominations of either HK$200 or HK$1,000, have a maturity of two years and offer an interest rate of

5% per annum. They are available for subscription both by Chinese residents and by compatriots residing in Hong Kong. All subscriptions had to be placed directly in the

Fujian Province with the BOC's Fuzhou branch, which was the issuing agent. Considering its small size (HK$10 million), this bond issue is not expected to have much impact on Hong Kong's monetary sector. Nevertheless, it has implications for the development of the Hong Kong dollar into a 'regional' currency in China.

33.

(d) Bank of China (BOC) Group activities in

Hong Kong

The following tables provide some indicators of the activities of the BOC Group in Hong Kong.

Total deposits with BOC Group*

% share in total deposits with authorised

financial institutions

% changes over end 87

Position as at end 88

(HK$ Mn)

HK$

76,287

22.0

+5.0 (+12.0)

Foreign Currencies

102,292

20.5

+54.0 (+26.6)

Total

178,579

21.1

+28.4

(+20.2)

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