TUESDAY, JANUARY 19
MR Li Ka-shing, chairman of Cheung Kong (Holdings), has not left for Beijing to discuss plans for Yantian port as previously expected. But it is understood that Mr Peter Woo, chairman of Wharf (Holdings), is in Beijing and is probably discussing the development plans for the port. Whether Cheung Kong will send a representative to Beijing to discuss the project remains unclear. - SING TAO MR Joseph Lau Luen-hung, a director of Evergo International, says the company's joint venture in Fujian is negotiating three investment projects with the authorities. The total investment for the projects is about $100 million. Two projects may involve theacquisition of stakes in Fujian enterprises. The third relates to a property development. Mr Lau says the joint venture may construct a building to serve as its headquarters. The remainder of the building will be sold and rented out. - SING TAO MR Brian Lee, chief executive of Giordano Enterprises, says the company plans to invest $100 million to expand its retail markets in China and Taiwan. Its business in Taiwan rose more than 60 per cent last year. The company has cash assets of $30 million, which are enough to fund investment in Taiwan and China. Mr Lee says the monthly turnover of the company's three stores in Shenzhen and Guangzhou is $30 million. Its Dongguan outlet, which cost the company $8 million to set up, will open in April. The company will spend a further $50 million to set up six more retail outlets on the mainland. Locations include Shunde, Foshan and Panyu. In Taiwan, there will be 10 more stores which will need an investment of $20 million to $30 million. Mr Lee says the company's manufacturing plant in the Philippines produced 60,000 dozen T-shirts monthly. Capacity will increase to 100,000 dozen by the end of the year. - SING TAO CHEUNG Kong's share price rose 20 cents yesterday while its covered warrant rose sharply, believed to be due to the need to corner short-sellers. Cheung Kong's share price has not performed as well as Hutchison Whampoa's in the past few days. It is obviousthat somebody is trying to place pressure on the price. As a result, the industry believes Cheung Kong's share price will rise soon, leading market players to corner those taking a short position on the warrant. - TIN TIN DAILY NEWS ACCORDING to a director of Chevalier International, Chevalier Development will join in the bidding for the Housing Authority's housing scheme in Ma On Shan and Siu Sai Wan. The Chevalier Commercial Centre in Kowloon Bay will bring in profits of $200 million to the group. Chevalier (OA) International has announced its intention to negotiate with mainland authorities to provide maintenance services for lifts manufactured by Toshiba. It will also consider manufacturing lifts to increase market competitiveness.Chevalier (OA) has invested $100 million in the CT2 business. It is forecast that tens of millions of dollars of further investment will be required. The company has no need to raise capital at the moment. - TA KUNG PAO MR Victor Lo, chairman of Hongkong Toy Centre, says the company has discussed with a third party the acquisition of a stake in the company. But the majority shareholding in the company will not be changed. It is rumoured in the market that China Resources will take a stake in the company. Mr Lo says he will make an announcement as soon as possible after a deal is struck. - SING PAO IT is rumoured in the market that some funds formerly holding Cathay Pacific Airways shares are now selling out and buying into Shun Tak Holdings. It is also speculated that Shun Tak may develop a transport business in China, giving grounds for optimism inthe company. - SING PAO SUN Hung Kai Properties has set up a joint venture with a film company to distribute films and run theatres, indicating it has a substantial surplus of capital and needs targets for investment. - SING PAO SUN Hung Kai Properties, which has just completed raising a $500 million loan, is now seeking another loan of $600 million for its mobile telephone business. According to a market source, Smarttone, a subsidiary of Sun Hung Kai, is planning to raise funds for its European-style digital mobile telephone. The plan requires $850 million. It is understood that J.P. Morgan and Barclays have contacted Sun Hung Kai concerning the loan arrangement. - ORIENTAL DAILY NEWS A SOURCE says Hutchison Telecommunications has reached an agreement with the Guangdong Military Commission to set up a joint venture. By early next month, paging services will be introduced in 15 locations in Guangdong. After consultation with the Ministryof Post and Telecommunications, a service for linking up with the Hongkong network will be introduced in March and April. It is understood the investment will exceed $10 million. Hutchison will be responsible for the funding of the project, while the commission will provide the channels, transmission stations and other equipment. - 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.