Relocation of Jardine Matheson disappointed Beijing, Lu Ping reveals

Beijing was very disappointed British-funded company Jardine Matheson relocated its legal domicile from Hong Kong to Bermuda in the run-up to the handover, former top official Lu Ping said.

In an interview, Mr Lu also said his former adversary, Lord Patten, who he once described as a 'sinner for a thousand years' had been a very good diplomat.

But Mr Lu said the last governor did not understand China. 'He did what he thought, as he did not care what would happen after 1997 and thought the Chinese government did not dare overthrow what had been established before the handover. It was because he thought China would collapse.'

Mr Lu, former director of the State Council's Hong Kong and Macau Affairs Office who retired 10 years ago, also said Beijing believed Lord Patten tried to use Hong Kong to overthrow the Beijing government.

In his interview with i-Cable News, Mr Lu said Beijing had spoken to many consortiums, including the HSBC Group, to persuade them not to pull out before the handover.

'HSBC explained to us why they needed to redomicile [from Hong Kong] ... HSBC had financial difficulties at that time, however, they promised Hong Kong was their base of operation, and they would not leave,' he said. HSBC group moved its headquarters from Hong Kong to London in 1993.