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The Hong Kong bullion market is cautiously anticipating Japan's plan to sell 90 metric tons of gold. Japan's intented transaction will affect global prices until the end of Mar, 1994. However, a materialized sale's long-term impact cannot be established. Tokyo plans to dispose of melted-down surplus gold coins amounting to 120 billion yen or US$1. 14 billion but will take steps to protect international markets.

China is in danger of losing potential foreign investors with its decision to curb the investment profits of foreign companies that are pursuing operations in the area. The idea surfaced following earlier reports that China will stop foreigners from making more than a 10% to 15% profit on investments in major power projects. Many foreign investors have warned that they may choose to operate in other Asian countries such as the Philippines once they feel that they can get better returns there.

Hong Kong's American Chamber of Commerce Pres. Frank Martin is optimistic that the US will renew China's most-favored-nation (MFN) trade status, although the final package may have some sanctions. Martin said that any Chinese move to improve its human rights record would encourage Pres. Clinton to renew its trade privileges. The business leader just arrived in Hong Kong from Washington to lobby for MFN renewal with no conditions.