SATURDAY, JANUARY 16
SOURCES in the securities industry say China Resources is looking to take a stake in Hongkong Toy Centre and has appointed a financial consultant to arrange the deal. - HK ECONOMIC JOURNAL ACCORDING to a source in the securities industry, Miss Sally Aw Sian, the majority shareholder of Sing Tao Holdings, has placed 39 million shares at $5.05 a share, raising about $196 million for the company. - HK ECONOMIC JOURNAL SOURCES in the property industry say Dah Chong Hong is planning to redevelop its car maintenance centre in Quarry Bay. The plan has already been finalised and negotiations over the land premium are under way with the Government. It is estimated the construction costs will total $600 million. Work is expected to start early next year. The redevelopment plan will be undertaken by CITIC Pacific. - ORIENTAL DAILY NEWS MR C.W. Lui, chairman of K. Wah International Holdings, says the company has signed a letter of intent for a quarry project in the Huangbo district of Guangzhou. It also has begun four property projects in China. A development at Dongfeng West Road, Guangzhou, will require about $1 billion. Another project concerns the development of property above the Huangsha underground railway station, requiring an investment of about $100 million. The contract for the development will be signed in two months. A letterof intent has been signed for the redevelopment of an old district in Shanghai's Yanan East Road. The fourth project is a bungalow development in Zhongshan. - SING PAO BARCLAYS Securities says that if Cathay Pacific Airways were to cancel all its flights, the airline could incur losses of $50 million a month. The parent company, Swire Pacific, would have to shoulder $20 million of these losses. - SING TAO THE share price of TVB rose considerably yesterday amid market rumours that the company may undertake ashare placement. TVB has been expanding rapidly overseas, and as a result may need additional capital. - TIN TIN DAILY NEWS PAM & Frank's share price has been rising lately. Sources say the company has won a contract to manufacture and market memorabilia for the World Cup to be held in the US next year. - MING PAO A SPOKESMAN for Orient Power says the company plans to set up a joint-venture plant in Shanghai to manufacture audio and visual equipment and satellite receivers. Some of the products will be sold in China. It is estimated the plant will need an investment of about $380 million. An agreement has been signed with the mainland partner. The spokesman refuses to reveal the shareholding structure, saying details will be announced in one to two months. In Tianjin, the company's manufacturing plant will go into operation in two to three months. About 70 per cent of the plant's products will be marketed in China. It is estimated the investment in the plant will total about $380 million, of which Orient Power has invested $31 million. - SING TAO IT is understood that China Overseas Land and Construction may alter its development plan for the Pearl Cinema in Tokwawan which it acquired in October last year. The initial plan was to develop residential and commercial property. The company has now applied to the Government to construct only a commercial building. - TA KUNG PAO THE chairman of Champion Technology, Mr Paul Kan Man-lok, says the company may set up 100 more paging stations in China over the next five years. It will also try to break into the Indian, Malaysian, Middle East and CIS markets. Mr Kan estimates that over the next five years, there may be a demand for five million pagers in China. He hopes his company can raise its annual production to one million pagers. He did not rule out the possibility of raising capital from the market for the company's expansion. - MING PAO MR S.P. Chan, a director of Prod-Art Technology, says sales of the company's pagers have risen sharply. He attributes this to the rapid development of the market in China. The company's products are sold in 27 mainland cities. Good relations have been fostered with the Ministry of Post and Telecommunications, especially in Guangdong and Beijing. The company has also set up a joint venture in Xinjiang with the Urumqi Post Office. It will aim to develop the paging market in northern China, while also seekingto break into the Russian market. Prod-Art plans to increase the number of paging maintenance centres in China to 21. - HK ECONOMIC JOURNAL FOLLOWING the takeover of Tung Wing Steel, it is reported that Capital Steel intends to take a stake in other firms. It was rumoured yesterday that Eastern Century is the mainland enterprise's next takeover target. The speculation was prompted by substantial buying yesterday in the company's shares by an unknown party. - HK ECONOMIC TIMES Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.