PVC trader and manufacturer Luen Fat Hong International has invested US$12 million in three production lines in China, bringing the number to 20. The new lines, one in Beijing and two in Guangdong, are expected to be operational by next March and to boost production by 15-20 per cent. The investment was funded from internal resources and its recent placement of 60 million shares, which raised HK$83.28 million. Chairman William Wong said he was confident of double-digit growth in turnover for the year after first-half growth at that level. The company was in talks with a 'very big' Japanese trading firm for possible joint-venture projects, he said. The group announced a bonus issue of 1998 warrants, with one warrant for every five shares. Mr Wong said he was relieved by comments of Vice-Premier Zhu Rongji yesterday that the mainland might reintroduce tax incentives relating to the importing of equipment by foreign-funded projects.