TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 80

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

GF 323

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24

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29.

Huaneng

Group. The power generating plant, with a

full capacity of 2.4 megawatts, will be

constructed in two phases over 20 years.

More recently, because of concern over China's

the consequential restraint

economic overheating and

measures, Hong

initiating new projects in China.

Kong investors have become more cautious in

Investments in

even

An

cancelled.

developing real estates and establishing economic zones in China, which are indicated as the prime targets of the

restraint measures, are going to be more seriously hit.

Some of the property development projects are reported to have been scaled down, while some others are deferred or

As an illustration, Sun Hung Kai

Properties has put on hold its plans to redevelop the Tung Market in Beijing and the Nanfang Dasha Department Store

in Guangzhou. New World Development has decided to withdraw from the redevelopment of the Beijing Department

Store.

Hong Kong are likewise adopting a more restrictive stance in respect of loans to finance property development in China. Currently only a few banks are still prepared to consider such loan applications, but only for those projects located in the major cities like Guangzhou

and Shanghai and on much more stringent terms and

conditions than before.

30.

Banks in

in Hong Kong of residential are reported to have slowed

period in 1992. The total

As to the marketing

flats in China, transactions

down markedly from the peak

number of residential units marketed in Hong Kong in the

first half of 1993 is estimated by one source at around

20 000.

Around three-quarters of these units are in

Guangdong Province. Given that 90% of the new land

approved for residential use by the Guangdong government this year has already been taken up for development, and that Dongguan, Zhongshan and Huizhou have already stopped approving additional land for residential projects, the number of new flats offered for sale in Hong Kong is likely

considerably fewer in the second half of 1993 and

to be

CONFIDENTIAL

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