Hong Kong Telecommunications Ltd, still 59%-owned by Cable & Wireless Plc, was hit by a tax charge equivalent to $94m as the Hong Kong Government changed the rules on leasing transactions financed by borrowing, and there was also a $17m charge for the cost of lay-offs. There was a gain of $14m from the sale of fixed assets, mainly a residential property. The net effect was that attributable profits were marginally down at $557m. As well as being cellular crazy, Hong Kongers are making much more use of the international phone network these days – no doubt keeping track of investments made abroad to put them out of reach of the looming Chinese Government, but there was a 36% increase in traffic to China, which grew 36% and now accounts for 38% of the total; international overall grew 21% to account for 59% of turnover. Cellular business rose 32% and local phone business 13%.The figures given here and in the table opposite are converted at $0.1284 to the Hong Kong dollar.
