MTR Corp. Ltd. (00066.HK) must ensure that its overseas commitments will not compromise investment and businesses in Hong Kong, the Hong Kong Economic Journal reported Thursday, citing Anthony Cheung Bing-leung, Secretary for Transport and Housing.
Cheung’s comment was in response to a lawmaker’s query about the transport company’s investment outside the city.
MTR said it plowed HK$12.52 billion (US$1.62 billion) into projects on the mainland last year, or about 8 percent of the company’s HK$152.6 billion equity, falling within the company’s 15 percent limit.
The rail operator said it has also invested or pledged to invest HK$667 million overseas but it is reviewing whether tighter limits should be put on offshore investment.
MTR runs offshore projects through joint venture companies or its wholly owned subsidiaries, including projects such as Beijing Subway’s Line 5, the London Overground, and rail systems in Stockholm and Melbourne.
Such overseas businesses generated HK$487 million in profit last year, compared with the group’s HK$8.6 billion operating profit.
– Contact us at [email protected]