TNAG-2467-FCO40-3591-Economic-situation-in-Hong-Kong-1992 — Page 123

'apan-led team wins Airport site bid

A Japanese-led consortium has won the site reclamation contract for the new airport at HK$9,041 billion (US$1.16 billion), according to the Chief Executive of the Provisional Airport Authority (PAA), Mr. Richard Allen, who said the PAA will send a letter of intent to the consortium, led by Mishimatsu Construction, saying that the contract will not be awarded until funds have been approved by the Legislative Council. The project director of Mishimatsu, Mr. John Porter, said they had agreed to freeze their bid price until the end of November. According to the Government, the tender price is within the PAA's cost estimates for the project.

CPA set to benefit from China tie-up

Hong Kong flag carrier Cathay Pacific Airways is expected to reap substantial political gains from its association with China National Aviation Corporation (CNAC) and China Travel Service (CTS) after Hong Kong Bank sold its 10 per cent stake in CPA to the mainland- controlled companies, analysts said. Hong Kong Bank disposed of its remaining interests in Cathay Pacific for HK$3.39 billion (US$434.6 billion), at HK$11.80 (US$1.5) per share, to realise a profit over book value of HK$3.16 billion (US$405 million).

Governments sells its stake in HACTL to China

The Government has sold its 10 per cent stake in the territory's air cargo handling monopoly, Hongkong Air Cargo Terminals Limited (HACTL), to China's largest state-owned aviation group, the China National Aviation Corporation (CNAC), for HK$106 million (US$13.59 million). CNAC, itself 79 per cent owned by the Civil Aviation Administration of China, China's aviation regulatory body and the holding company for the country's airlines, is sales agent in Hong Kong for several Chinese airlines and one of HACTL's largest customers. HACTL's other owners include Swire Aviation (30 per cent). Jardine Matheson (30 per cent), Wharf Holdings (15 per cent) and Hong Kong Whampoa Docks (15 per cent).

Overseas Trust Bank (OTB) for sale

The Overseas Trust Bank (OTB) has been put up for sale with analysts estimating the price tag to be in excess of HK$3.5 billion (US$448.7 million). Among potential buyers, Dao Heng Bank, Xiamen International Bank, Dah Sing Bank, Lippo and First Pacific Bank have expressed interest. The 48-branch OTB has been under government ownership since being rescued by the Banking Commission when an investigation found some US$90 million owed to OTB were false loans and it was declared insolvent by the owners in June 1985.

MTR profits turnabout

Six months after reporting its first ever profit of HK£67 million (US$8.59 million) for the second half of 1991, the Mass Transit Railway Corporation (MTR) has strengthened its bottom line further, turning around previous losses of HK$43 million (US$5,51 million) for the first six months of last year to a net profit of HK$201 million (US$25.77 million) this year. While total gross revenue rose 13.4 per cent or by HK$222 million (US$28.46 million), the company trimmed interest expense and finance charges by 12.8 per cent, or HK$93 million (US$11.92 million).

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