TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 37

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

GF 323

CONFIDENTIAL #

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27

35.

(b) China's Investment in Hong Kong

The

China Enterprises Association was inaugurated

in early June 1991. Its main objective is to co-ordinate

the business activities of PRC-interest enterprises in Hong Kong(33)

This can be regarded as a logical extension of

the "house-cleaning campaign". When all the registrations

with the association are completed, it may be possible for

Hong Kong traders and investors to understand more about

the background of the PRC-interest companies in Hong Kong.

The

36.

active in

in recent

PRC-interest companies in Hong Kong were very

Hong Kong's property market

months(34).

As regards areas other than property

investment, CITIC transferred its 12.5% stake in the Cathay

Pacific Airways Ltd. to Tylfull Co. Ltd. for HK$2.86

CITIC had already transferred its 38% stake in

the Hong Kong Dragon Airlines Ltd. and some of its

properties to Tylfull in 1990. Tylfull, which was 49%

owned by CITIC since 1990, aimed to diversify from property

investment and development to infrastructural development

billion.

and public utilities.

Group, comprising the

Separately, the United Publishing

Commercial Press (HK) Ltd., Joint

(33)

(34)

Reportedly, up to

early August 1991, more than 700 wholly China-owned enterprises or China-interest holding companies have registered with the association, which basically will cover most of such firms in Hong Kong. The association plans to start recruiting the China-interest partners of those Sino-Hong Kong joint ventures in Hong Kong by the end of August 1991.

Participants included the Bank of China, CITIC Guangdong Asia Insurance Co. Ltd., Guangdong Construction Co. Ltd., enterprises of Hunan, Shandong and Sichuan interests, and several other un-named enterprises. Their deals involved both residential and commercial properties.

CONFIDENTIAL

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