BEIJING'S drive to attract more foreign investment has suffered a major setback with Mr Robert Kuok's Kerry Group pulling out of a big property deal.
To make matters worse, Kerry's withdrawal is said to be the result of the capricious attitude of the mainland partner rather than simply the two sides' failure to reach a commercial deal.
Beijing was very much in the mainland investment limelight last year, with almost all of Hongkong property giants heading north to its multi-billion-dollar property and retail projects.
Late in the year a 400-strong delegation, headed by three Beijing deputy mayors, even came to the territory to seek Hongkong investment.
Almost all the numerous letters of intent struck at the time were timed by the Beijing authorities to show the outside world how enthusiastic Hongkong investors were about the capital.
One property source has suggested that it was in this frame of mind that Kerry Group had been urged by Beijing authorities to enter into a preliminary agreement with the mainland partner.
