THE price of S. Megga shares yesterday rose from $1.86 to $2.25, an increase of about 20 per cent. The stock exchange apparently had a meeting with S. Megga's chief executive over the price surge. The company later issued a statement claiming it could notexplain the reason behind the rise. However, it is understood that major plans are afoot for certain business ventures which will have a very beneficial effect on the company's overall business. - TIN TIN DAILY NEWS MR He Keqin, chairman of Guangdong Enterprises, says the group will sign a highway development agreement in Guangzhou on Saturday. He refuses to give more details, saying only that the highway will be about 100 km long. - SING TAO THE share price of Wharf Holdings yesterday rose 70 cents. The sudden strength of the shares is unusual and led to speculation that covered warrants will be issued on behalf of Wharf, thereby explaining the need to push up the share price. - SING PAO A SPOKESMAN for Group Sense Holdings, Ms Kwong Pui-ha, says the company has won approval to sell on the domestic market in China and will invest US$1 million to $2 million to strengthen its market position on the mainland. She says China accounts for only five per cent of the company's business, which can now rise to as much as 20 per cent next year. She also says the group has formed a joint venture with a mainland corporation and it has taken a 60 per cent stake. The company will produce 50,000 to 100,000units of electrical dictionaries each year in addition to other consumer products. There are also plans to set up retail networks in Beijing, Sichuan, Xian, Shanghai, Guangzhou, Wuhan and Shenzhen. Ms Kwong says the company is designing new products, including a palm-top computer. - MING PAO MR Serge Pun Kay-chak, chairman of Serge Pun & Associates, says conditions for the company's listing are still not quite right and the company may have to delay its public offer. He says the company's major Thai property project, jointly developed with C.P. Pokphand with a total investment of 2.6 billion baht (about HK$782.6 million), is now complete after a two-year delay caused by the war in the Persian Gulf. Mr Pun also says his company has sold off its 60 per cent stake in a Thai construction company. -SING PAO MR Allan Yeung, director of a telecommunications company which is a subsidiary of Wharf Holdings, says his company intends to develop network telecommunications system services in China through a joint venture. He says initial plans are to introduce such services in Zhuhai this year with an investment of US$2 million. - SING TAO IT has been speculated lately that Barclays International will shift its foreign exchange business to Singapore. However, Mr David Lawrence, a spokesman for the bank's foreign exchange department in Hongkong, says there is no such plan. He says that since March 1, the bank has reduced its Hongkong dollar interbank interest rates activities. He says this move is part of the bank's overall international strategy. - MING PAO AS the market for new factories in Tsuen Wan is picking up, old factories in the area are now fetching good prices. Following the redevelopment of the Swire bottling plant, Tung Chun Soy Sauce and Canned Food Co is also planning to redevelop its own property in Tsuen Wan. The property is at Cheong Wing Road and has a site area of nearly 50,000 sq ft. It could be redeveloped to provide floor area of 400,000 sq ft. Investment for this project could reach $400 million to $500 million. It is reported that although many groups have shown interest in this property, the soy sauce company is expanding into property and may even seek a public listing. Therefore, the property is not for sale. - TIN TIN DAILY NEWS THE deputy director of Guangzhou's State Commission for the Restructuring of the Economy, says the listing of Perfectech International Holdings has been a rare case. The city will in the future not allow any corporation to come to Hongkong for direct listing. He says Guangzhou Shipyard is a different case as it is a major state corporation of a different status to city corporations. He denies that a joint-venture company formed by Yuexiu Enterprises and the Guangzhou Light Industry Bureau will apply for a listing in Hongkong. Mr Francis Leung, managing director of Peregrine, which is handling the case, says the above listing is only a fund with fewer assets than Perfectech. He says the company may have to change its identity. - ORIENTAL DAILY NEWS MR Li Guangzhen, deputy mayor of Shenzhen, says the city is planning to build a major international exhibition and convention centre. He says the city government plans to co-operate with overseas groups on this project, for which New World Development and Kerry Group have already shown interest. - HK ECONOMIC JOURNAL Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.