TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 23

GF 323

CONFIDENTIAL

機密

13

first bond

issue

overseas since June 1989. Between 1982

and 1989, the ten authorised financial institutions in

China which were allowed to issue bonds Overseas had

floated a total of US$4.25 billion worth of bonds

Reportedly, the China International Trust and

overseas.

Investment

Corporation and the Fujian Investment and

Enterprise Corporation were also planning to issue bonds in

Japan following the BOC issue.

16.

Encouraged by Japan's renewed diplomatic ties

with and economic assistance to China(25), the Japanese

banks had been participating actively in financing projects

in China.

Some Japanese bankers opined that China would

remain one of the best overseas borrowers in view of the

sluggishness in the US and European markets. The active

participation of the Japanese banks was conceivably also

related to the investment in China being undertaken by

Japanese businessmen(26).

(25)

(26)

to

In addition

the resumption of Japan's third concessionary government loan totalling ¥810 billion (about US$5.9 billion) to China in 1990, the Japanese government has agreed in principle to extend further loans totalling ¥700 billion (about US$5.1 billion) to China for financing the exploration of crude oil, coal and natural gas. This is the third energy loan package being offered by the Japanese government to China and is also the largest among the three.

According to MOFERT Statistics, up to end-1990, the pledged value of direct foreign investment from Japan amounted to US$3.1 billion, making it the third largest external investor in China after Hong Kong and the United states. In the first quarter of 1991, 109

projects involving Japanese capital were approved and the value of pledged direct foreign investment amounted to US$94 million, representing increases of 91% and 164% over the same quarter in 1990.

CONFIDENTIAL

機密