TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 42

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

GF 323

CONFIDENTIAL

25

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34.

Wharf Holdings signed a letter of intent with the Ningbo government in Zhejiang Province, for a 50%

stake in a joint

joint venture for the development of port and warehouse facilities at Beilun Port.

As regards property investment, in 1992 a total of

some 70 000 to 90 000 residential flats in China were

offered for sale in Hong Kong. This was more than three

times the number of new private residential flats produced

in Hong Kong in the same year. of these Chinese flats, some 50 000 units involving a total transaction value of

about HK$15 billion were bought by Hong

by Hong Kong buyers.

However, trading in these flats quietened down significantly towards the end of 1992.

35.

keen

(b) China's investment in Hong Kong

China-interest enterprises continued to show a

interest in raising funds from Hong Kong's financial

sector. Capital Iron and Steel Corporation, a large-scale heavy industry conglomerate in China, announced that it was finding a suitable bank in Hong Kong for the purchase of its financial subsidiary, Hua Xia Bank. In December 1992,

Guangzhou Investment Co Ltd, a subsidiary of Yue Xiu

Enterprises, was listed on the Hong Kong Stock Exchange. The shares were over-subscribed by 230 times, involving

subscription

proceeds of

earmarked

monies of about HK$98 billion. Out of the net

HK$425 million thus raised, HK$180 million was

for various property and infrastructure projects in Guangzhou as well as in Hong Kong. The remainder would be employed as working capital.

development

36.

In addition, a total of nine China-based

industrial enterprises were seeking listing on the Hong

Kong Stock Exchange. The total amount of funds planned to

be raised

initially

US$1.72 billion.

was

estimated by one source at

CONFIDENTIAL

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