TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 48

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subsidiaries

of

the

1

then China Resources Company(2) with

each of them specialising in importing and distributing

certain categories of products from China(3). Against this background, China's investment in Hong Kong in those days was undertaken with a view to facilitating merchandise

trade.

Thus it was concentrated in areas like

transportation (mainly shipping, principal interest

represented by China Merchant Steam Navigation Co. Ltd.),

banking services including trade financing (interest

represented by Bank of China and its twelve sister banks),

and department stores (serving as retail outlets for Chinese products). Most of the Chinese department stores in Hong Kong were set up as joint ventures with local

interests.

10.

But

companies in

areas like

since the early 1980s the PRC-interest

Hong Kong had entered progressively into new

property development, financial services,

and infrastructural projects. Many of these

investments involved substantial outlays and hence

attracted considerable attention from the local business

manufacturing

(2) China Resources Company, formerly an unincorporated company registered only with the Inland Revenue Department with a business registration certificate, was incorporated in Hong Kong under the new name of China Resources (Holdings) Co. Ltd. with a share capital and limited liability of HK$200 million in July 1983.

(3)

Well-known examples of such subsidiaries include Ng Fung Hong Ltd. which specialises in cereals, oil, vegetables, rice and livestock; Teck Soon Hong Ltd. which specialises in precious herbs, spices, tea, fur, Wool and leather; China Hua Yua Co. Ltd. which specialises in paper, cosmetics, watches and decoration materials; and Chinese Arts and Crafts

(H.K.) Ltd. which specialises in arts and crafts.

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