CMIC close to cartoon agreement

PUBLISHED : Saturday, 30 September, 2000, 12:00am
UPDATED : Saturday, 30 September, 2000, 12:00am

Continental Mariner Investment Corp (CMIC) is close to signing an agreement with a Macau satellite television station to rent its channel to broadcast cartoon movies to China.

The red chip will spend HK$100 million over three years to rent the channel.

Managing director Xie Datong said the deal could be signed soon, pending Beijing's approval. Mr Xie said his company also intended to upgrade the cable television networks in Chongqing and in another city of Hubei province to broadband optic-fibre networks.

Mr Xie, also the managing director of CMIC's sister company Poly Investment, said the two companies' parent China Poly Group, the former commercial arm of the People's Liberation Army, intended to inject its 50 per cent stake in a satellite operating subsidiary, China Eastern Telecommunication Satellite, into one of the two SAR listing subsidiaries.

Poly Investment is believed to be the more likely recipient as it intended to be the group's telecommunications business arm.

China Eastern Telecommunication Satellite is now in talks with a leading telecoms equipment manufacturer from the United States over the co-development of an Internet-based wireless application mobile-phone project.

The moves are part of the red chips' plan to shift to media entertainment, telecoms-related projects and other service industries after seeing the limited growth of their existing businesses.

Mr Xie said that the progress hinged on the speed of the liberalisation of the sectors, in which foreign participation is currently restricted.

China Poly Group intends to inject its 51 per cent-owned DVD and VCD distributor into CMIC.