South China Holdings, a conglomerate with interests ranging from toys to financial services, expects to see further deals stemming from this week's tie-up with an arm of the Guangzhou government. A source close to the company said the future deals were likely to focus on the group's various manufacturing activities in China rather than on financial services. On Monday, Yue Xiu Enterprises (Holdings), a unit of the Guangzhou government which controls Guangzhou Investment Co, completed its acquisition of a 9 per cent stake in South China Brokerage for about $100 million. After the annual general meeting of the South China group of companies yesterday, South China Holdings director Christina Cheung Choi-ngor said: 'We cannot comment on further projects involving Yue Xiu as the matter is price-sensitive. 'But we can say we do have some intentions to expand further in financial services and in China.' The South China group and Yue Xiu have links dating back to 1991. In that year, the group bought out Yue Xiu's stake in Wah Shing Toys Co. Wah Shing was later renamed South China Industries, and the toy manufacturing operations have since been spun off from South China Industries. They have been listed separately on the Stock Exchange of Singapore. Wah Shing and the other manufacturing concerns of the South China group have struggled in recent years. Wah Shing saw profits pared back last year due to intense competition, and this year is likely to see much the same. The group's other industrial divisions, which include manufacturing of leather, footwear and tools, are expected to see better returns this year after a rationalisation and restructuring. Its best performing units this year are seen to be the stockbroking operations under South China Brokerage and property interests, which include a development in Tsuen Wan with Lai Sun Development Co.