Chinese Press Digest

FRIDAY, NOVEMBER 10 DESPITE difficulties encountered by the Bank of East Asia in its application to upgrade its Taiwan office to branch status, sources say the Taiwan Government will give final approval to the bank's application.

TIN TIN DAILY NEWS CHINA'S civil aviation officials say China National Aviation Corporation (CNAC) must not be excluded from an air agreement just signed between Hong Kong and Taiwan. The officials say the agreement between Cathay and Taiwan's airlines must be approved by the Beijing Government.

ECONOMIC JOURNAL CHENGDU Cable says the decision by the People's Bank of China to end its interest rate subsidies to mainland enterprises and its move to scrap tax exemption for imported machinery, due to come into effect on January 1, 1996, will not have a major impact on its operations.

ECONOMIC JOURNAL CHEUNG Kong Holdings has confirmed that it has sold all of its 13 per cent holding in Pioneer Industries, realising a profit of more than $118 million. Pioneer chairman Anthony Gaw says he believes Cheung Kong's move does not indicate lack of confidence in Pioneer and is only motivated by the desire for profits.

ECONOMIC JOURNAL GUOCO Group and Dao Heng Bank have jointly announced that Dao Heng Bank has issued 43.86 million new shares at $26.20 per share, raising a total of $1.132 billion. The proceeds will be used to repay bank loans and to develop the banks' operations in the Philippines as well as for general working capital.

ECONOMIC TIMES MARK Mobius, director of Templeton International, says East Asiatic, in which Templeton holds a five per cent stake, is proposing to privatise at $1.10 per share. He says the price should be doubled.