IT is understood that the Lands Department has made a proposal concerning land premium to Cheung Kong (Holdings), which has applied to redevelop an industrial site in Kwun Tong, Kowloon, into an industrial and office (I/O) complex. The proposed land premium is more than $400 per square foot. The site is at 181, Hoi Bun Road. Under the proposed land premium, Cheung Kong will have to pay more than $120 million. Property sources say Kwun Tong is the most popular area in the territory for I/O redevelopment applications. Therefore the land premium which Cheung Kong is required to pay is seen as being a benchmark for land premiums for I/O developments in general. - ECONOMIC JOURNAL TELEPOINT, a CT2 joint venture formed by Chevalier (OA) and Telstra, an Australian telecommunications group, plans to invest $25 million to upgrade its one-way communication system to a two-way system. Chevalier has a 51 per cent stake in Telepoint. - ECONOMIC JOURNAL FAR East Aluminium's share price fluctuated widely after share trading was resumed yesterday. The stock's volatility was driven by an announcement about Panorama International, a company closely tied to Far East Wagner (BVI), a consortium formed by Cheung Kong (Holdings), Aviation Industries of China and two Hong Kong businessmen. The counter gained nine per cent at one point but closed in negative territory at $1.31, down one cent compared with the level before trading was suspended. - ECONOMIC TIMES FIRST Asia International says it notes the unusual movement in the trading volume of its shares. The company says it is still in discussion with an individual third party about the acquisition of a stake in a plant in Shenzhen engaged in the manufacture of electric switches. The company says it regularly reviews operation and financial condition of its textile business. However, it has not seriously considered arranging a listing of its textile operations on the Sri Lanka stock exchange. - ECONOMIC TIMES SOURCES say it will not be economically feasible for Hongkong Bank to bid more than US$200 million for its old headquarters building on the Bund in Shanghai. - SING TAO KONG Wah Holdings told the stock exchange its major shareholder, Gowell Inc, increased its stake in the company by 2.26 million shares on December 14, from 74 per cent to 74.21 per cent. - ECONOMIC TIMES NEW World Development Co's managing director, Henry Cheng, says the group has been studying the feasibility of listing its mainland investment projects on stock exchanges in the United States and Europe. He says one of the major candidates for this undertaking is New World's operations related to home ownership schemes in China. However, European and US investors show concern about investment prospects in China and the listing plan will have to be delayed until next year at the earliest. - ECONOMIC JOURNAL NEW World Development Co's chairman Cheng Yu-tung says despite the drop in New World's share price, the company has no plan to buy back shares. He says the price decline will have no impact on the company's borrowing plans. Mr Cheng also says New World has no capital raising plan, nor has it any intention to apply for a credit rating soon. He says the company is teaming up with Kerry Group and Henderson Land to participate in the Kowloon-Canton Railway Corp's Hunghom property development project. - SING TAO STYLAND Holdings issued a statement denying any relationship with J W Garment, which says it is an associate company of Styland. Styland says it will not bear any responsibility for J W Garment's operations. - ECONOMIC TIMES TOP Form International says the markets of Japan and Taiwan, which are in the doldrums, should begin to improve in the second half of the 1994-95 financial year. However, it says a full recovery will not take place until the 1996-97 year. It says it is reviving its Taiwan operations. It will close about 10 retail outlets to save costs. The Japanese market is expected to gradually improve amid the Japanese economic recovery in 1995. - ECONOMIC JOURNAL FOLLOWING the announcement of its intention to acquire Britain's Northern Electric, Trafalgar House will reportedly participate in the development of an exhibition centre in East London. A consortium formed by Trafalgar House, Try Construction and Sir Robert McAlpine Ltd has made a proposal to the London Docklands Development Corp regarding the construction of the first phase of an exhibition centre with a total floor area of 505,720 sq ft. The proposal also includes a plan to expand the floor area by 1.07 million sq ft to be undertaken in the future. The exhibition centre will have 5,300 parking spaces, two hotel blocks, one wholesale market and a conference centre. - ECONOMIC JOURNAL UDL Holdings notified the stock exchange that its major shareholder Harbour Front lifted its stake in the company by 1.09 million shares on December 15, from 35.75 per cent to 35.92 per cent. - ECONOMIC TIMES FOLLOWING the sharp correction in Hong Kong and other Southeast Asian stock markets this year, interest among Japanese investment funds in the regional stock markets is reviving. Market sources say Nomura has completed the organisation of a Hong Kong index fund and another investment fund focused on six markets in East Asia. The Hong Kong index fund has raised HK$550 million. Elsewhere, Yamaichi Securities has organised a trust fund with a total value of US$500 million to invest in the Asian stock markets. - ECONOMIC JOURNAL
