THE general manager of New World Development (China), Mr So Ngok, says New World has signed an agreement with the Beijing Electronics Industry Department. The two will co-operate on developing hi-tech business, reforming old enterprises and renovating theinformation industry. Mr So says the co-operation is a way of preparing the way for New World to enter China's telecommunications business. The joint venture, New World Electronics, will at first produce fax machines at an annual rate of 800,000, and will eventually manufacture 1.5 million a year. Investment in this project is around US$10 million. - SING TAO RYODEN Development's China property development will focus on the commercial sector in Shanghai and on residential property in Shenzhen. The company's China land bank covers 60 to 70 per cent of its total land bank, although it is valued as being worth only 40 per cent of Ryoden's property assets. - SING TAO OVER the past four months, Century City's buying back of its own shares has aroused the attention of investors. According to company chairman Lo Yuk-sui, all three group companies should record double-digit profit growth. Mr Lo also says that due to the large supply of residential property, prices are set to fall. Demand for office space will be greater due to overseas companies coming to set up in Hongkong and the buying power of mainland companies and Taiwanese. Mr Lo expects office property prices and rentals to rise by 10 to 20 per cent. - MING PAO ALLIED Group will make a combined investment of two billion yuan (about HK$2.66 billion) in two property developments in Yantai, Shandong. A formal contract is expected to be signed with the local authorities by the end of March. The joint venture partner is Yantai Property Development Co. The project will involve developing a coastal residential and commercial district covering 10 square kilometres. - MING PAO THE sale of the World Trade Centre in Causeway Bay to Sun Hung Kai Properties has also benefited Great Eagle, which owns 140 million shares of World Trade Centre. - TIN TIN DAILY NEWS SUN Hung Kai Properties spent $2.2 billion on the World Trade Centre, or $4,600 a square foot. Part of the property's attraction is its 150,000 sq ft of commercial space. According to property market sources, some consortiums have already expressed interest in buying this space. If SHKP is willing to sell, the shopping complex could fetch $700 million. - TIN TIN DAILY NEWS LAI Sun Development will sell 64 units of its Deepwater Bay luxury property development. The average price will be at least $5,500 a square foot. Hongkong Bank and Bank of East Asia will provide 70 per cent of mortgage financing. Lai Sun has also set down preferential terms for buyers. - HK COMMERCIAL DAILY WUHAN Tian An Hotel, a property jointly owned by Tian An and other local firms, will open next year. The four-star hotel, being built to international standards, will have a main building of 28 floors. Total construction area is 37,500 square metres. Investment in the hotel will be US$35 million, and the consortium has already secured a US$25 million loan for interior works. - TA KUNG PO GUANGZHOU'S Telecommunications Bureau will spend $2.5 billion over the next three years to develop the city's telecommunications system. Ten telephone exchanges will be built. After work is completed by around September this year, the efficiency of the city's telecommunications services should be gradually improved. Mr Zhong Zhuopeng, chief of the bureau, says Guangzhou hopes to outpace Hongkong in telecommunications services within 13 years. By the year 2005, Guangzhou's telephone exchanges will have threemillion lines, averaging 70 lines per 100 people. - WAH KIU YAT PO CHINA is planning a series of measures to woo foreign investment in its postal and telecommunications industry. Although foreign investors may be accorded preferential treatment, they will not be able to play a direct role in managing telecommunications services. Mr Dai Shuang, vice-director of the Planning Department under the Ministry of Telecommunications, says the new policy will ensure that investors' rate of return exceeds that in other industries in China. The measures under consideration include an extension of fund-raising efforts and buying foreign telecommunications equipment. Policy updates will be announced in the coming months. - SING TAO GOVERNOR Chris Patten says the Hongkong Government will under no circumstances use money from the Exchange Fund to build the new airport at Chek Lap Kok. He gave the assurance last night at a reception hosted by 19 District Board chairmen. Kwai Tsing District Board chairman Leung Kwong-cheung, a member of the Airport Consultative Committee, said he was happy with Mr Patten's assurance, although Financial Secretary Hamish Macleod had made the same pledge in a written answer to the Hongkong Democratic Foundation. - TIN TIN DAILY NEWS Chinese Press Digest is produced by Corporate Information Services. For pre-publication and other services, telephone 865 5006 or fax 865 5835.
