U.S. Securities and Exchange Commission
                                Washington, DC 20549

                                    Form 10-Q SB
                                     (Mark One)
            ( X )QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934

                    For the quarterly period ended June 30, 1998

        (  )TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
                                           
          For the transition period from ______________ to ________________

                          Commission File Number:   0-15937
                                                 ------------
                              GREATER CHINA CORPORATION
                         -----------------------------------
          (Exact name of small business issuer as specified in its charter)

                       Delaware                             22-3057451     
                   ------------------                 -----------------------
               (State or other jurisdiction of             (I.R.S. Employer
               Incorporation or organization)            Identification No.)

                         27  East 61st Street   New York,  New York   10021
                -------------------------------------------------------------
                           (Address of principal executive offices)

                                      (212) 935-0561
                                 -----------------------
                                (Issuer's telephone number)

     ----------------------------------------------------------------------
     (Former name, former address and former fiscal year, if changed since last
     report)

     Check whether the issuer (1) filed all reports required to filed by Section
     13 or 15(d) of the  Exchange Act during the past 12 months ( or for such
     shorter period that the registrant was required to file such report), and
     (2) has been subject to such filing requirements for the past 90 days.
     Yes............          No....X......


                  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                     PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check whether the registrant filed all documents and reports required to be
     filed by Section 12, 13 or 15 (d) of the Exchange Act after the
     distribution of securities under a plan confirmed by a court.
     Yes..........          No..........

                        APPLICABLE ONLY TO CORPORATE ISSUERS
     State the number of shares outstanding of each of the issuer's classes of
     common equity, as of the latest practicable date:  August 10, 1998,
     20,179,773
                                       -  1 -
     <PAGE> 


                              Greater China Corporation
                                  and Subsidiaries

                                    FORM 10-Q SB

                         FOR THE QUARTER ENDED JUNE 30, 1998

                                 INDEX                                 PAGE

     Part I         Financial Information

          Item 1. Financial Statements                                     3

             Condensed Consolidated Balance Sheet at June 30, 1998         4

             Condensed Consolidated Statements of Operations for
             the Period from October 1, 1997 through June 30, 1998
             and from October 1, 1996 through June 30, 1997                6

             Condensed Consolidated Statements of Operations for
             the Period from April 1, 1997 through June 30, 1998
             and from April 1, 1996 through June 30, 1997                  7


             Notes to Consolidated Financial Statements                    8


     Item 2  Management's Discussion and Analysis of
             Financial Condition and Results of Operations                 10

         Information

          Item 1. Legal Proceedings ------------------------------------   13
          Item 2. Changes in Securities ---------------------------------- 13
          Item 3. Defaults Upon Senior Securities ------------------------ 13
          Item 4. Submissions of Matters to a Vote of Securities Holders   13  
          Item 5. Other Information--------------------------------------- 13

          Signatures ------------------------------------------------------14












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     <PAGE> 

                              Greater China Corporation
                                  and Subsidiaries

                                    FORM 10-Q SB

                         FOR THE QUARTER ENDED JUNE 30, 1998



     PART I. FINANCIAL INFORMATION

     ITEM 1.   Financial Statements.












































                                       - 3 -
     <PAGE> 


                       Greater China Corporation
                           and Subsidiaries
            Unaudited Condensed Consolidated Balance Sheet
                           at June 30, 1998



                                            June 30, 1998
   ASSETS                                    (Unaudited)

   CURRENT ASSETS
        Cash                                $   160,000
        Accounts Receivable                   6,319,000
        Inventory                               859,000
        Other receivable                          8,000
                                              ---------
         Total Current Assets                 7,346,000

        Property and equipment                  512,000
                                             ----------
        Total Assets                         $7,858,000
                                             ----------


     LIABILITIES AND STOCKHOLDERS' EQUITY                  
     (Deficit)

     CURRENT LIABILITIES
          Overdrafts                     $       56,000           
          Short Term Loans                      600,000                   
         Accounts payable and  
             accrued expenses                 6,539,000                     
         Miscellaneous Payables                 388,000                   
                                           ------------
                 Total Current Liabilities    7,583,000                    
                                           ------------
     LONG TERM LIABILITES
          Loans                                 961,000                
          Pension Fund Loans                    144,000
          Lease Financing                        15,000
                                             ----------
                 Total Long-term Liabilities  1,120,000                     
                                              ----------
                 Total Liabilities            8,703,000                   
                                              ----------

                 Minority Interest              275,000
                                              ----------


                                       - 4 - 
     <PAGE> 

                              Greater China Corporation

                                  and Subsidiaries

                   Unaudited Condensed Consolidated Balance Sheet

                                  at June 30, 1998



     Stockholders' Deficit:          
          Common stock                      402,000
          Additional paid-in capital      2,385,000
          Accumulated deficit            (3,869,000)
          Treasury stock                    (38,000)
                                        -----------

        Total Stockholders'                (845,000)
          Deficit                        ------------

         Total Liabilities and           $7,858,000
         Stockholders' Deficit          ------------







[FN]
        See accompanying notes to unaudited condensed consolidated financial
        statements.
















                                       -  5 -
     <PAGE> 

                            Greater China Corporation
                                  and Subsidiaries
       Unaudited Condensed Consolidated Statements of Operations for
              the period October 1, 1997 to June 30, 1998 and
                                    from
                      October 1, 1996 to June 30, 1997


                                        1998                   1997*
                                      --------                -------

     Revenues, net                    $6,184,000
     Cost of  Sales                    4,922,000
                                      ----------
          Gross Profit                 1,262,000

     Selling, general and
        administrative expenses        1,475,000
  
    Depreciation and amortization         23,000
                                       ---------
    Loss from operations                (236,000)                              


    Other income (expense):
         Other income                   212,000
         Interest expense
         Financial charges             (510,000)
                                      ----------
    
   Income before income taxes
    and minority interest              (534,000)

   Income Taxes                               0

   Minority Interest                     94,000
                                      ---------

   Net Loss                            (628,000)

   Income (loss) per share - Basic      ($0.03)

   Income (loss) per share - Diluted    ($0.02)

 
  *These figures are currently not available.  They will be filed by amendment
    as soon as possible.

[FN]
   See accompanying notes to unaudited condensed consolidated financial 
   statements.
                                     - 6 -
     <PAGE> 

                             Greater China Corporation
                                    and Subsidiaries
            Unaudited Condensed Consolidated Statements of Operations for
                   the Period from April 1, 1998 to June 30, 1998
                                         and
                         From April 1, 1997 to June 30, 1997

    
                                          1998                     1997*  
                                         -------                  --------

     Revenues, net                     $ 6,814,000 
     Cost of  Sales                      4,922,000        
                                        -----------
          Gross Profit                   1,262,000
 
     Selling, General and
       administrative expenses           1,244,000

     Depreciation and Amortization          23,000
                                        ----------
   Income (Loss) from operations            (5,000)

   Other income (expense):
        Other income                       212,000
        Interest expense
        Financial charges                 (228,000)
                                         ----------
   Income (Loss) before income taxes
      and minority interest                (21,000)     

   Income Taxes                                  0

   Minority Interest                        94,000
                                          ---------
   Net Loss                              $(115,000)

  Income (Loss) per share - Basic           ($   #)

  Income (Loss) per share - Diluted         ($   #)

    #Less than ($0.01) per share     

  *These figures are currently unavailable.  They will be filed by amendment as
    soon as possible.

[FN]
 See accompanying notes to unaudited condensed consolidated financial
 statements.
                                      - 7 -
<PAGE>

                           Greater China Corporation
                              and Subsidiaries
                               June 30, 1998
              Notes to Condensed Consolidated Financial Statements


     Note 1 -- Basis of Presentation

     The unaudited interim condensed consolidated financial statements of 
     Greater China Corporation and its subsidiaries (the" Company")  have  been
     prepared pursuant  to  the rules  and  regulations of  the  Securities  and
     Exchange  Commission.   Accordingly,  certain   information  and   footnote
     disclosures  normally  included   in  financial   statements  prepared   in
     accordance  with  generally  accepted  accounting    principles  have  been
     condensed or  omitted.  These  interim  consolidated  financial  statements
     should  be  read  in  conjunction  with  the  Company's  audited  financial
     statements.

     In the opinion of management, the interim consolidated financial statements
     reflect all  adjustments necessary  for fair  presentation of  the  interim
     periods.  The  results  of  operations  for  the  interim  period  are  not
     indicative of results of operations to be expected for the full year.

     NOTE 2 - - MERGER WITH THE INTERNATIONAL TECHNOLOGY GROUP

     The  merger  between  Greater  China  Corporation  and  The   International
     Technology Group has been accounted for as a reverse acquisition.

     NOTE 3 -- CONTINGENCIES

     The company is engaged in various legal proceedings incidental to its
     normal business activities.  See Part II, Item 1, "Legal Proceedings".  











                                     - 8 -
        <PAGE> 

                        Greater China Corporation
                            and Subsidiaries
                              June 30, 1998
          Notes to Condensed Consolidated Financial Statements
                               (continued)


    NOTE 4 - - EARNINGS (LOSS) PER SHARE

     The following represents the calculation of earnings per share:

                                                  FOR THE         FOR THE

                                                THREE MONTHS     NINE MONTHS

                                               ENDED JUNE 30     ENDED JUNE 30

                  BASIC                              1998          1998
                --------                           -------        ------
       Net income                                 $ (115,000)    $(628,000)   

       Less preferred stock dividends                  --           ---
                                                  -----------   -----------
       Weighted average common shares             20,179,773     20,179,773

       Basic Earnings per share                     ($    *)      ($0.03)
                                                  ----------   ------------
               DILUTED
             ----------
       Net income applicable
       to common shareholders                     $ (115,000)    $(628,000)   

       Preferred stock dividend                      --              --        
                                                  -----------    ----------
       Net income available
        to common shareholders
       Plus assumed conversion                    $ (115,000)    $(628,000)
                                                  -----------   -----------
       Weighted average number of common shares   20,179,773     20,179,773

       Common stock equivalent shares representing
          Shares issuable as of June 30, 1998       4,291,741     4,291,741

       Common stock equivalent shares representing
          Shares issuable upon exercise of stock
          Options                                     108,572       108,572

       Common stock equivalent shares representing
          Shares issuable upon exercise of warrants   775,458       775,458

       Common stock equivalent shares representing
          Shares issuable upon conversion of debt     615,250       615,250   
                                                   -----------   ----------
       Weighted average number of shares used in
       Calculation of diluted income per share     25,970,794    25,970,794
                                                  -----------   ------------
        Diluted earnings per share                ($     *)       ($0.02)

                * Less than $0.01
                                         - 9 -
<PAGE>

                      GREATER CHINA CORPORATION AND SUBSIDIARIES

                                     June 30, 1998

                                      FORM 10Q-SB


     ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS

     This report,  including  the disclosures  below,  contains  forward-looking
     statements that involve substantial risks and/or uncertainties.  When  used
     herein, the terms "anticipates", "expects", "estimates", and similar
     expressions,  as they relate  to the Company or its  management,
     are intended to  identify such forward-looking  statements.  The Company's
     actual results,  performance or  achievements  may differ  materially  from
     those expressed or implied by such forward-looking statements.

     Results of Operations: 

     Nature of Business

     Greater China Corporation, through its subsidiary companies in China,  Hong
     Kong and Europe manufactures  and distributes a wide  range of fiber  optic
     products used primarily in the fiber optic and cable industries.

     Revenues and costs of revenues

     On 27 March 1998, Greater China  Corporation acquired 100% of the stock  of
     The International Technology  Group Limited, in  a transaction intended  to
     bring all of  the operating  subsidiaries of  The International  Technology
     Group Limited  ("ITG"') into  the ownership  of Greater  China Corporation
     ("GCC"). Two  sets of  figures are  presented. The  first set  of figures 
     shows operating revenues and costs for  GCC for the period October 1,  1997
     to June 30, 1998 and for ITG for the period April 1, 1998 to June 30, 1998.
     The second set of figures are for GCC and ITG for the quarter April 1, 1998
     to June  30,  1998  in  order  to give  a  representative  picture  of  the
     consolidated company as it  currently exists and as  it has operated  since
     the acquisition at the end of March 1998.

     The company's consolidated  net revenues  were $6,184,000  for the  quarter
     April 1, 1998 to June 30, 1998 and for  the period October 1, 1997 to  June
     30, 1998. Prior to the  acquisition on March 27,  1998 GCC had no  revenues
     and no operating  companies in its  ownership. Pre-acquisition revenues  of
     the International Technology Group Limited for the quarter January 1,  1998
     to March 31, 1998  were $ 1,604,000. The  increase in revenues between  the
     two quarters is directly attributable to the provision of a $600,000 Senior
     Bridge Loan secured by the company to provide increased working capital for
     two of its key operating companies in China, Arnhem



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     <PAGE> 

                       GREATER CHINA CORPORATION AND SUBSIDIARIES

                                     June 30, 1998
 
                                      FORM 10Q-SB


     ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS (continued)


     Technology Limited (``ATL'') and Shenzhen Unigel Telecommunications Company
     Limited  ("SUTCO" ).  Both  operating  companies  were  able  to  increase
     revenues significantly  and increase market share as a result. Revenues  of
     $265,000 were generated in European markets.

     Consolidated cost of sales were $4,922,000 for the quarter 1 April 1998  to
     30 June 1998  and for  the period 1  October 1997  to 30  June 1998.  Gross
     margins held stable through the quarter in the manufacturing company  SUTCO
     and improved slightly  at the distribution company ATL. Management plans to
     increase revenues and margins  during the remainder  of 1998 assuming  that
     funding is available as detailed below.

     Selling, general and administrative

     Selling, general and administrative expenses for  the quarter 1 April  1998
     to 30 June 1998 were $1,244,000. Management intends to control tightly  and
     reduce expenses particularly with expected increases in head count in  line
     with increased revenues forecasted for the remainder of 1998.

     Extraordinary, unusual and infrequent expenses

     During the quarter April 1, 1998  to June 30, 1998, extraordinary  expenses
     associated  with  the  acquisition  of  ITG  by  GCC  included  $86,000  in
     investment banking fees and bank charges, $23,000 in professional and legal
     fees and $14,000 in investment banking services.

     Depreciation and amortization

     Depreciation and amortization remained steady through the quarter April  1,
     1998 to June 30, 1998 at $23,000.

     Income Taxes

     The Company does not  currently have any tax  liabilities and retains  some
     loss carry forward against which future earnings can be applied.

                                      - 11 -
<PAGE>
                       GREATER CHINA CORPORATION AND SUBSIDIARIES

                                     June 30, 1998

                                      FORM 10Q-SB


     ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS (continued)

     Net Income

     Operations for the quarter April 1, 1998  to June 30, 1998 generated a  net
     loss of $115,000, although extraordinary and non-recurring expenses related
     to the acquisition of ITG by GCC noted above were $123,000.

     Liquidity and capital resources

     During the  period April  1, 1998  to June  30, 1998  the Company  received
     $600,000  of  financing  that  was  utilized  directly  by  its   operating
     subsidiaries to increase sales. The Company is currently seeking a  further
     $1.4 million bridge loan  prior to a private  equity offering which, it  is
     envisaged, will be placed before the end of 1998.

     Outlook

     The company intends  to increase its  activities in the  telecommunications
     and fiber optics  sectors in  China in line  with rapid  market growth  and
     infrastructure development. The outlook in China remains robust despite the
     current situation in other Asian countries. The Chinese economy is  cooling
     slightly and it is possible that a modest devaluation of the RMB may occur,
     although Chinese export markets are generally markedly different from those
     of its  more  developed neighbors.  The  Company expects  exports  from  it
     operations in China to help balance  any negative effect of a  devaluation.
     Based upon past experience, infrastructure  projects in China are  unlikely
     to be  affected  for  1-2  years  following  any  currency  devaluation.  A
     devaluation would, in  fact, make  the Company's  products manufactured  in
     China more competitive. The Company believes  the current outlook in  China
     remains very positive.

     In addition, the  Company anticipates  expanding its  operations in  Europe
     from its UK based plant and expects to use its office in the United  States
     to penetrate North American markets during the next 12 months.


                                     - 12 -
<PAGE>

                        GREATER CHINA CORPORATION AND SUBSIDIARIES

                                     June 30, 1998
                                      FORM 10Q-SB

     PART II.   OTHER INFORMATION
                                    
     Item 1.   Legal Proceedings.
               On August 5, 1998, the Company settled all outstanding litigation
               with a former service  provider.  As a  result, the Company  will
               issue to the  service provider 96,129  new shares  and agreed  to
               release 208,729 shares which had been previously issued.

     Item 2.   Changes in Securities.
               N/A

     Item 3.   Defaults Upon Senior Securities.
               N/A

     Item 4.   Submissions of matter to a Vote of Security Holders.
               None

     Item 5.   Other Information.
               During the period October 1, 1997  to June 30, 1998, the  Company
               issued a series  of long term  revolving notes in  the amount  of
               $535,000. These notes bear an interest rate of 15% per annum.  In
               addition, noteholders receive one  share of the Company's  common
               stock for each  ten dollars of  note value  outstanding for  each
               ninety (90) day period.

               On May  14, 1998,  the Company  issued  Senior Secured  One  Year
               Promissory notes totaling $600,000. These notes carry an annual
               interest rate  of 15%.   In  addition, investors  will receive  a
               total of 240,000 shares of the Company's common stock at maturity
               of these notes.

               The above notes were issued  to accredited investors pursuant  to
               an exemption  from  registration  under  Section  4  (2)  of  the
               Securities Act of 1933.

               Effective August  5, 1998,  the Company  retained the  accounting
               firm of  Hein  +  Associates,  LLP  to  serve  as  the  Company's
               principal accountant to audit the Company's financial statements.
               Prior to its  engagement as the  Company's principal  independent
               accountant, Hein + Accociates, LLP had not been consulted by  the
               Company either  with respect  to  the application  of  accounting
               principals to  a  specified  transaction or  the  type  of  audit
               opinion  that  might  be  rendered  on  the  Company's  financial
               statement or on  any other matter  which was the  subject of  any
               prior  disagreement  between   the  Company   and  its   previous
               certifying accountants.


                                       - 13 -
     <PAGE> 

                     GREATER CHINA CORPORATION AND SUBSIDIARIES

                                    June 30, 1998


                                     FORM 10Q-SB


                                      SIGNATURE
E


          Pursuant to the requirements of the  Securities Exchange Act of  1934,
     the Registrant has duly caused  this report to be  signed on its behalf  by
     the undersigned thereunto duly authorized.




         August 14, 1998                        /s/  PETER R. BARKER
     --------------------------              --------------------------------
             DATE                            BY:    Peter R. Barker       
                                                    Executive Vice President
























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