They are generally richer than the average Beihai citizens, with many families owning multi-storey houses.

They also have ventured into other operations including restaurants and hair salons, and in-vogue businesses such as karaoke bars.

Four residents invested a total of 150,000 yuan to set up a small karaoke bar which was opened last October to add to the existing four in the district.

One of the partners, Liang Yungfu, had gone a long way since coming to the city some 15 years ago.

''I was at first assigned a driving job. In 1986, with help from relatives in the US, I bought a lorry for 36,000 yuan to start running a transport service for goods,'' he said.

''In 1988, I had an accident and lost a foot. So I quit the driving business and set up a restaurant,'' said Mr Liang.

But he stopped working when the lease contract was terminated.

''Then, two of my friends talked about setting up a karaoke bar. I was interested and joined in,'' he said.

However, business had been quiet, presumable due to fishermen's culture and the competition with other operations.

''lts daily turnover is just about 300 yuan. When I think of it, I can't help regretting the decision.'' But his story underlines the bold entrepreneurial spirit of the district's people under the country's economic reform.

Their income has been growing dramatically in recent years. An average resident there made 10,000 yuan last year, compared with 3,500 yuan in 1989.

''They are making bigger and bigger fishing boats for fishing. Some of the catch is exported to Hong Kong through trading companies, although the majority is sold in Beihai,'' said resident Liang Daxiong.

''We have a place to live, children can go to school, we have production tools,'' said fisherman Xian Jiuyou, with an expression of satisfaction.