TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 120

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Southern China(14)

•

12.

in 1989.

At the end of October 1991, China International

Trust and Investment Corporation (CITIC) launched a ¥15

billion floating rate bond issue in Japan. With an earlier

issue by the Bank of China, this was China's second bond

issue overseas since June 1989. China had not been able to

return to the European capital market since the June events

However, the financial institutions in Japan

remained keen on the China market, and the Japanese

government was prepared to re-activate its diplomatic ties

The Japanese government will provide a total

billion (approx. US$967 million) in official

loans to China in the fiscal year ending 31 March 1992 for

financing 22 projects. The loans carry an interest rate of

2.6% and are to be repaid in 30 years, including a grace

period of 10 years.

with China.

of ¥129.61

13.

In the first three quarters of 1991, the pledged

and realised values of foreign loans totalled US$4.4

billion and US$4.9 billion respectively. By the end of

1990, China's outstanding debts totalled US$52.6 billion,

27

(14) China Assets (Holdings) Ltd. is formed by

shareholders, mostly institutions from China, Japan, Hong Kong and Europe. The single biggest shareholder is the Hong Kong subsidiary of the Beijing-based China Venturetech Investment Corporation, with a 20% stake.

Before the participation of the ADB, it has already raised US$39 million through a private placement of shares with foreign institutional investors. China Assets is mainly looking for small and medium-sized enterprises in Southern China which have a good track record of exports and profits and a secure source of raw materials. The shares of the China Assets Holdings are intended to be listed on the Hong Kong Stock Exchange by the end of 1991.

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