TNAG-2466-FCO40-3590-Economic-situation-in-Hong-Kong-1992 — Page 83

property and investment surpluses, the bank's actual inner reserves totalled some HK$25.3 billion (US$3.2 billion).

The Hang Seng Bank's inner reserves at the end of 1991 totalled HK$7.1 billion (US$910 million). However, taking into account the reassessed market value of property and the unrealised surplus of the market value of long term listed investments held by Hang Seng and its subsidiaries, the inner reserves attributable to shareholders stood at HK$12.97 billion (US$1.7 billion).

HKBank gets twin listings

HSBC Holdings is to get primary listing on both the Hong Kong and London stock exchanges if its proposed merger with Britain's Midland Bank is approved. The holding company of Hongkong Bank has reached an agreement in principle with the two exchanges to become the first company on either market with a dual primary listing. It is conditional on HSBC completing its proposed acquisition of Midland, and the group will have to adhere to the rules of both exchanges. HSBC says that where there are differences in regulations it will, unless otherwise agreed with the relevant stock exchange, comply with the regulations which impose the higher standard of disclosure or the more onerous requirements.

Strong competition for mobile phone licence

Competition for a fourth cellular mobile phone licence has intensified with the announcement that a group led by Shun Tak Holdings plans to enter the fray. The consortium will include German-based Siemens and Detecon (Deutsche Telepost Consulting) and China's Ministry of Aerospace Industry. It is the fifth consortium to formally announce its intention to bid for the licence. The other groups are led by Sun Hung Kai Properties, New World Development, Wharf and Chevalier OA.

Hutchison launches satellite paging

Hutchison Telcom has launched the first satellite-based paging network in Britain, becoming the only company to offer a nationwide paging service in the country. Hutchison invested some HK$135 million (US$17.3 million) in developing the satellite technology and network management systems during the previous year. Currently there are about 700,000 paging subscribers in the UK and the company predicts that it will have a 10 per cent market share in its first year of operation.

Cheung Kong bid for EIE

Cheung Kong Holdings has lunched a HK$1.7 billion (US$218 million) bid for locally-listed company, EIE Development (International). The deal represents the continuation of Cheung Kong's investment diversification programme into listed companies which began in 1990. However, the EIE bid is the first where Cheung Kong is seeking control of a company.

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