WEDNESDAY, JANUARY 20
WHARF (Holdings), Cheung Kong (Holdings) and the authorities in China have not reached any agreement on the share structure and management rights of the Yantian port and terminal development project. Wharf chairman Peter Woo will return from Beijing today. Cheung Kong chairman Li Ka-shing says he did not go to Beijing to discuss the project. Mr John Hung, executive director of Wharf, confirms that the company has not signed any deal, adding that the project is fairly complex. - SING TAO MR Yip Wai-yee, a director of the Hsin Chong group, says Hsin Chong Construction recently took over the management of Rocheland from the group. The move on the hotel development project is intended to increase the profitability of the construction arm. Mr Yip also says that any investment involving construction will be injected into Hsin Chong Construction. He says fierce competition in the construction industry has affected Hsin Chong Construction's profits and this is why it must expand into other business. Hsin Chong Construction also has a joint venture with Sun Hung Kai Properties. - SING TAO MR David Lam Kwing-chan, managing director of Golden Resources, says the company has entered into five rice-processing joint ventures in China, which will go into operation after July. The five plants will initially have a combined annual production capacity of 50,000 tonnes. The mainland rice market has an annual demand of 140 million tonnes. - SING TAO MR Xu Kairui, the mayor of Putian in Fujian, says the mainland government has seven development projects for Meizhou Bay. The Lippo Group will take part in three of them. It is estimated that by the year 2000, 28 billion yuan (about HK$37.7 billion) of overseas capital will have been invested in the area. Lippo will invest in a power plant and the development of Meizhou Island and Zhongmen peninsula. The power plant will require an investment of 8.8 billion yuan. The Fujian provincial government has alreadyapproved the power plant project. Approval is now needed from the State Council. It is understood that Mr Li Ka-shing will be invited to participate in the project, along with Indonesian tycoon Lam Siu Leung. Mr Xu says the government will guarantee 13 percent profit for investors in the plant. The investment is expected to be recovered in seven years. - SING TAO MR Lo Kai-shui, managing director of Sung Foo Kee Holdings, says the company is on the look-out for business opportunities in China. A subsidiary has signed an agreement for a joint venture to build a power plant in Dalian at a cost of $22 million. Sung Foo Kee will hold a 49 per cent stake in the project. - WEN WEI PO MR Chan Wai-sing, a deputy director of Team Concepts Holdings, says the company was given approval to market its electronic toy educational products in China in November last year. The company expects 80,000 units to be sold in one year, generating a turnover of $25 million. Mr Chan says electronic educational products account for 45 per cent of the company's business, with telecommunication products accounting for the remainder. The European market absorbs 80 per cent of all its exports. Mr Chan says the company is investing $40 million in its manufacturing plant in Dongguan, Guangdong. - SING TAO IT is understood a mainland enterprise has offered $3 a share for a stake in Laws Property. The offer price is at a 10 per cent premium to the current share price. Laws International, which owns 65 per cent of the firm, could realise $530 million if it accepts the offer. - SING TAO TERN Properties, normally a very dull stock, saw a dramatic surge in the number of share deals yesterday. Sources say certain consortiums are negotiating to take over the company. Many firms are interested in buying into Tern because of its simplified business structure. - WEN WEI PO INDESEN'S main video-tape market is still China, where it has a three per cent market share, which it hopes to increase to more than 10 per cent. Given the increasing popularity of television and videos in China, the demand for video-tapes should be considerable. - SING PAO THE City Garden Commercial Centre, in Electric Road, North Point, is said to be up for sale again. The consortium that bought the property for $460 million is now asking for $530 million. The centre is considered a quality property, so returns on investment should be quite good. - TIN TIN DAILY NEWS SOURCES in the banking industry say the US$2.4 billion syndicated loan being raised by China Light and Power for the development of a power plant in Black Point is not very attractive to banks. The loan is for 13 years and with unappealing interest rates. The fund raising may not meet the schedule set for February 19. - 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.