A LEADING mainland construction developer has described as ''a myth'' reports that mainland money is being used to snap up massive amounts of Hong Kong office and residential space.
''In recent years, it is true that Chinese companies have been growing very quickly,'' said Sun Wenjie, vice-chairman and general manager of China Overseas Holdings Ltd, a construction and development company with more than $2 billion worth of commercialand residential investments in Hong Kong and China.
''The companies need office space and residential space. This is natural.'' But Mr Sun, who is one of the most successful mainland developers to set up business in Hong Kong, denied mainland companies had played a part in Hong Kong's property price increases.
He said mainland investment in the Hong Kong property market amounted to a mere two per cent of the total.
''So, Chinese companies cannot dominate the market or influence prices,'' he said.
Mr Sun said mainland companies coming to Hong Kong represented only a tiny fraction of companies renting or buying space in the territory.
