TNAG-2466-FCO40-3590-Economic-situation-in-Hong-Kong-1992 — Page 149

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New Banking Licence Granted

The representative office of the Bank of Kinki in Hong Kong has been granted a full banking licence, bringing to 165 the number of licensed banks operating in Hong Kong. The Bank of Kinki is Japan's 49th largest bank and ranks 261st in the world in terms of capital.

This was the fourth banking licence granted in 1991.

Labour Import Scheme to Continue

The government is to continue with the general labour importation scheme in a controlled way and targeted at areas most in need of workers. And instead of having an annual quota, the government has set a ceiling on the number of workers that can be imported at any point of time. A ceiling has been set at 25,000, and with 13,800 imported workers already in Hong Kong, the scheme will only permit a maximum of 12,000 more to be taken on over the next few months.

Electronic Products Up 16%

including

Exports of electronic calculators and related gadgets, electronic dictionaries, translators and executive organisers, have grown 16 per cent in the first 10 months of 1991 to HK$3.2 billion (US$410 million).

With a new wave of demand for electronic translators in response to the opening of east European markets and the creation of the Single Market, translators represent about 10 per cent of total exports in the sector compared with 72 per cent for electronic calculators and 18 per cent for personal organisers.

MTL Signs Loan for Port Project

Modern Terminals Limited (MTL) has taken a HK$2 billion (US$256 million) syndicated loan to finance its portion of the Terminal 8 port development project. The dual-currency multi-option facility involves 18 international financial institutions and has been arranged by Banque Nationale de Paris, Sanwa International Finance Limited and Westdeutsche Landesbank Girozentrale.

The loan is the first syndicated borrowing by MTL.

Kong Wah Float

Hong Kong's largest television manufacturer, Kong Wah International, has launched a HK$345 million (US$44 million) flotation said to be the biggest public offer of new shares since June 1990. The company is issuing 250 million new shares at HK$1.38 each, giving it an initial market capitalisation of HK$1.38 billion (US$177 million).

Kong Wah is forecasting a 38 per cent profit growth to HK$168 million (US$21.5 million) for the year ending March, after posting HK$93 million (US$12 million) at the interim stage.

Proceeds from the float will be used on a number of expansion projects, including factories in China and Malaysia and a facility in Newcastle, England, to help expand sales into the European market.