Posted on 09/05/08
Hong Kong investors eye south China plant closings
Hong Kong investors may close 10,000 factories in southern China because of falling U.S. demand and higher costs, according to a local industry association. Operators of labour-intensive businesses such as textiles, shoes and electronics are among those most severely affected by increasing costs from China's new labour law and appreciation in China's currency, Stanley Lau, deputy chairman of the Federation of Hong Kong Industries, said yesterday. Factories seeking to close or cut operations employ a total of more than one million workers, he said. Hong Kong, the largest contributor of foreign direct investment in China, operates about 70,000 factories in the Pearl River Delta in southern China, Mr. Lau said.
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