funding the projects.
The authorities clearly hope to build on
the success of the 3-month Exchange Fund Bills, which were
launched in March.
Stock Exchange of Hong Kong
5 The Hang Seng Index has recovered steadily from the sharp falls of June 1989. The index is currently around 3150, compared with just over 2000 on 5 June 1989. In common with other financial centres, the Hang Seng index has been particularly buoyant in the last couple of months (despite the 1st Anniversary of Tiananmen) and has risen by over 150 points (5.2%) since the beginning of April. However, this is still lower than the peak of over 3,300 recorded in May 1989 or almost 4,000 immediately prior to the Stock Market crash of October 1987. Turnover is still well below record levels.
Sir Y K Pao
6 Sir Y K Pao is one of Hong Kong's wealthiest and most successful entrepreneurs. He first came to the Territory as a refugee from the Communist Mainland and built up a number of successful shipping companies. His World International Group is now one of Hong Kong's major conglomerates. Sir Y K Pao was one of Standard Chartered's "White Knights" in 1986, buying a 14.9% stake in the bank to help prevent a takeover by Lloyds. He subsequently sold his entire share in 1988 to a variety of interests. More recently Sir Y K Pao's business interests appear to have refocussed firmly on shipping. In November 1989 he sold his 37.8% stake in Dragonair, the smaller of Hong Kong's two carriers, whilst in May Pao family interests bought back 20% stakes held by HSBC in two of the World International Group's shipping companies. In what has been regarded as a significant move, Lane Crawford, the department store subsidiary of World International, announced in May that it is to move domicile from Hong Kong to Bermuda. Although Lane Crawford is one of the smallest components of the World International empire, it may well indicate the start of a re-orientation for the entire group away from Hong Kong and further underlines the vulnerable state of corporate confidence in the Territory.
companies./I
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