TNAG-2088-FCO40-2973-Diplomatic-representation-of-third-countries-in-Hong-Kong-1990 — Page 113

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In 1980, Novel Enterprises Ltd formed Sino-Hongkong Textiles Ltd in Hong Kong, a joint venture with China National Textiles Import & Export Corporation. In the same year, Mr. Chao lauched the second compensation

trade project in Hu Zhou, Zhejiang Province of China. Novel Precision

Machinery Co. Ltd, a joint venture in Hong Kong between Novel Enterprises Ltd and China National Aero-Technology Import & Export Corporation, was also established in 1980.

In 1984, Novel Enterprises Ltd entered into a joint venture in Beijing,"

China, to construct a 620-room hotel of international standard. In the

same year, the Novel Group established Novel Cotton Mills, a wholly-owned subsidiary in Shekou, Shenzhen Special Economic Zone, China. The Linyi

United Wooltex Co. Ltd was also established for manufacturing woollen

yarns in Shandong Province of China..

In 1985, Novel Group under the leadership of Mr. Chao became a major shareholder of an investment company called Hongkong Macau International Investment Ltd, which has a paid-up capital of HK$500 million. In the

name of Hongkong Macau, Mr. Chao founded Hong Kong Dragon Airlines Ltd in April 1985.

In the same year, Mr. Chao set up three more joint ventures in Hong Kong. Novel Technology Development Limited is a joint venture between Novel Enterprises Ltd and China National Technical Import Corporation. Novel Technology's main activities are trading, technology transfer, investment, and consultancy services. It has established its own ntework of subsidiaries. Another joint venture is Long Guang Enterprises Ltd, which is established with the provincial authorities of Heilongjiang, China. Long Guang subsequently set up its own factories in Macau and in Heilongjiang. The third joint venture is Shanghai Xinyi Wooltex Co. Ltd, which manufactures yarns of angora, wool, cotton, and mixed yarns.