Assets of mainland firms in HK swell
The total assets of mainland enterprises in Hong Kong have swollen to more than $1.3 trillion, second only to British interests.
The figures were quoted yesterday by Shi Jiyang, manager of the Hong Kong Chinese Enterprises Association's co-ordination and administration department, in an article published in the mainland-backed Wen Wei Po newspaper.
Mr Shi said mainland firms operating in the territory would face tighter supervision after July 1, when they would have to abide by the laws of both Hong Kong and China.
While they would not seek privileges or predominant positions in Hong Kong, neither would they tolerate being discriminated against or sidelined in the areas of politics, economics, society and culture, Mr Shi said.
The number of official mainland firms had risen to more than 1,800 from about 120 in 1979, and there were Chinese companies in almost every major business sector in Hong Kong, he said.
Mr Shi said even the $1.3 trillion figure, which included $900 billion worth of assets under the Bank of China group, underestimated the strength of mainland business power in Hong Kong as it excluded the assets and operations of firms not directly under state control but still within mainland firms' orbits.
He said the combined capitalisation of red chips and other state-owned companies listed in Hong Kong had reached $512.7 billion, accounting for more than 13 per cent of the total stock market value.
Red chips and other companies wholly owned by the mainland government had created more than 50,000 jobs in Hong Kong.
