FAIRWOOD Holdings has opened two outlets in Guangzhou. Managing director Dennis Lo Hoi-yeung says the company is planning to open six more outlets in Guangzhou and five more in Shenzhen. It aims to have 22 outlets in Shenzhen and 30 in Guangzhou by 1996. - HK ECONOMIC JOURNAL IT is understood that China Overseas Land and Investment is looking to increase its ownership of old buildings. A source from the property market says the company will team up with another consortium to buy old buildings in Jardine's Crescent in Causeway Bay. The target is to buy a plot of land to develop a commercial building. Investment amount required is estimated to be in excess of $500 million. - TA KUNG PAO CHINA Paint, having set up a production plant in Shajing, is looking to redevelop its Sai Kung plant. Initial plans are for a commercial and residential property. The site covers 40,000 sq ft and can provide floor area of 360,000 sq ft. China Paint is apparently in negotiations with the Government over land use rights, as the site was previously limited to industrial use. Property sources say one reason for the Government refusing to change the land use limitation was its fear of traffic building up in the area. - TA KUNG PAO MR W.C. Poon, a director of Swank International, says the company has been selling spectacle frames in China for a few months, accounting for about 20 per cent of its overall turnover. The company plans to invest $300 million on retailing from 200 more outlets in China. In three years, the mainland network is expected to have 1,000 stores. The Shenzhen plant is producing 200,000 spectacle frames a year. Sunglasses are its best-selling item in China. Its new Dongguan plant should enter trial production afterthe Chinese New Year. The company has the right to sell 30 per cent of the plant's products in China. - SING TAO MR Wong Sun, chairman of Hanny Magnetics, has cited four reasons for the company's growth. First, the company has diversified its product line to manufacture both 3.5-inch and 5.25-inch floppy disks. Second, overall production costs are lower than Japanesecompetitors' due to its facilities in China. Third, the company's sales network includes supermarkets. Lastly, 35 per cent of products are retailed under the company's own brand, thus yielding a higher profit margin. Sales of the company's floppy disks arenow worth tens of billions of US dollars, despite the presence of five major Japanese producers in the market. Hanny has only a 10 per cent share of the market, and hence Mr Wong says there is much opportunity for expansion. - MING PAO MR T.Y. Wong, finance director of Yaohan International Caterers, says the company is seeking to expand its restaurant business in new towns including Junk Bay and Ma On Shan. He also says the development of a shopping arcade in Junk Bay is nearing completion. Mr Wong says up to five more St Honore bakery shops will be opened in the territory. The outlets will be at the vanguard of the firm's mainland expansion, as their establishment requires comparatively low investment. Also, the St Honore chain will be the first of its kind in China. If the business progresses smoothly, the company will diversify into other catering business in China. The company plans to invest $20 million to set up the first St Honore bakery in Shanghai. Outlets are also planned for Guangzhou and Shenzhen. - WEN WEI PO THE development of a commercial building next to the London Theatre in Tsim Sha Tsui, to be undertaken by Kerry Trading, is expected to start this year. The building will have a floor area of 80,000 to 90,000 sq ft. Land premium and construction costs are expected to be $450 million. Kerry has also bought an old building next to the site to provide further room for expansion. According to sources in the property industry, Kerry has not submitted any development plans to the Government. - ORIENTAL DAILY NEWS TVB'S profits for last year are expected to grow 15 per cent. This year, double-digit growth should be maintained by advertising revenues. According to an analysis by Nomura Securities, cable television, ATV and competition for artistes will push up costs.In addition, STAR TV and cable television may win over advertising from TVB. As a result, TVB's prospects are unreliable. Another analysis says many investors have neglected the notion that TVB could be considered as a China play. TVB's channels are widelywatched in China, and late-night advertising is quite often aimed at the southern Chinese consumer. TVB may have good prospects for post-1997 development. - MING PAO MR Billy Hung, a director of Lai Sun Garment (International), says Crocodile is planning to invest $50 million to $70 million over the next two years to expand its market in China. It now has 10 mainland outlets, in Shanghai, Beijing and the Pearl River delta. Mr Hung says the company is seeking to expand its network to Liaoning, Heilongjiang, Shandong and Hebei in the first half of the year, with end-of-year plans for a total of 20 mainland outlets, to be doubled to 40 next year. - MING PAO Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.