}
9 It is sometimes suggested that there has been little new investment from Britain in recent years. The details at para 6 show this is not so. In the last year there has been significant activity including acquisitions by the Beazer Group and by Polly Peck International; P & O are looking for new opportunities in Hong Kong. In manufacturing, Technophone will soon begin producing mobile telephones at a local plant; and new ventures have included one by Pilkington. Further evidence of British activity has been the opening in the last two years of about 12 new retail stores. Reinvestment by existing British companies has been considerable and is continuing at a high level.
The Swire Group capital investment in 1987 was about £270m. Hong Kong Telecom has plans for £230m of investment in 1989; Shell will be making a large investment to move its storage facility.
10 None of the figures mentioned so far include the extensive British investment in Hong Kong equities where no management or control is involved. It is thought that British portfolio investment accounts for 30-40 percent of the total market capitalisation of listed companies in Hong Kong.
Invisible Earnings
11 Total earnings by British companies in the "invisibles" sector of the economy are very large but difficult to qualify. They include the net earnings of overseas affiliates, dividends, tourism, students, insurance, banking and other services. DTI figures show that the net earnings from direct investment in Hong Kong in 1987 were £486 million. Royalties, including patents, licences, trademarks and similar transactions, were £7 million in 1986 (most recent figure). Dividends were £137 million in 1986. Tourism is estimated as £66m 1987, based on figures of 91,000 visits to the UK at an average expenditure of HK$ 894 quoted by Hong Kong Tourist Association. This gives annual earnings of around £700m, excluding those from transport,
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