ACCORDING to sources in the banking industry, the consortium to arrange the $2.8 billion syndicated loan for World International will be formed within a couple of weeks. The actual raising of capital will begin at the start of next month. The Wharf group has over-borrowed in recent years, and the terms of this loan are not considered particularly attractive. It is expected the banking industry will react coolly to the loan, which will be made in two stages; the first of $1.5 billion, the second $1.3 billion. The loan will be for four years and will be at an interest rate of 125 basis points above the Hongkong Interbank Offered Rate. - WAH KIU YAT PO PLAYMATES International has been investing in property recently. It has also put a number of properties on the market. The response to one of these, a Happy Valley property sold at an average of $4,000 a square foot, has been quite satisfactory. Playmates'property business has performed much better than its core toy business. - WAH KIU YAT PO KAIYUAN Real Estate Development Co general manager Chen Huiying says New World Development and Sun Hung Kai Properties intend to take part in the renovation of the old city district of Kaiyuan. The agreement is still being negotiated. - EXPRESS NEWS ALTHOUGH the Hongkong market has been affected by the Sino-British row and turnover has been drastically reduced, sources in the market says that because the supply of China concept stocks is limited, these stocks have become very popular with institutional investors. One analyst says China concept stocks performed outstandingly yesterday because they are a less risky investment at the moment. - EXPRESS NEWS IT is rumoured in the market that Hongkong Macau Holdings will inject part of its manufacturing business into China Industrial International, which has sufficient capital to pay for these assets after an earlier cash-raising exercise. Part of the industrial business to be injected will be paid for by issuing new shares. - TIN TIN DAILY NEWS THE share price of Burwill International yesterday leapt amid rumours that a Chinese company would take a stake in Burwill. This appears not to be the stuff of speculators' dreams. Market makers are apparently fixing a price for a placement. The buyer could possibly be a highly capitalised mainland group. - TIN TIN DAILY NEWS IT has been rumoured that banks will increase their mortgage levels by increasing their capital base. However, the Hongkong Bank says it will not consider the proposal as any increase in the mortgage ceiling above 70 per cent will not make sound business. The value of mortgages taken out so far this month is already more than for the whole of last month. The current political uncertainties make it even more unwise to relax the mortgage ceiling, according to the bank. - TIN TIN DAILY NEWS CHEVALIER (OA) International says its major shareholder has reduced its holding in the company by 63.2 million shares, or 10 per cent of the total issued capital. It was also disclosed that Mr Vincent Lau Yiu-yum had bought 72.56 million shares, or 11.5 per cent of the issued capital. - HK ECONOMIC TIMES RJP Electronics has signed an agreement with the Weihai government to develop industrial, property, trade and infrastructure projects in the city. RJP chairman Robert Li Shu-keung says the agreement has made possible RJP's participation in various projects, particularly that to develop the city's container port. At present, the city's products are exported through Shanghai. - SING TAO CONTINENTAL Mariner Holdings has bought four more vessels to expand the shipping business of a major shareholder. Company director Kwan Ying-wai says the turnover of Po Lee Technology is more than US$500 million a year and it needs more ships to expand. Details concerning Continental Mariner's co-operation with its major shareholders, Po Lee and CITIC, will be announced soon. - SING TAO SHARES of Hongkong Chinese Bank were snapped up before the close of trading yesterday. The share price closed at $2.475, indicating that buyers were desperate to acquire the shares at whatever the price. According to rumours, a group is negotiating to buy the bank. - SING PAO FOLLOWING a share placement to China Non-ferrous Metals, Tem Fat Hing Fung yesterday saw its share price rise significantly on a turnover of 7.84 million shares. It is rumoured in the market that major plans are in the pipeline for Tem Fat Hing Fung, including large development projects with Cheung Kong and New World Development. - WEN WEI PO FAR East Aluminium chairman Pang Shek-nam says the company has received a contract worth $100 million this month, bringing the value of contracts in hand to more than $240 million. Although there has been a slowdown in the property market and the delay in the building of the new airport has badly affected the construction market, the company is optimistic about its prospects for this year. According to Mr Pang, the company's joint venture in Beijing has begun operation. The company is also setting up an office in Shanghai in co-operation with a mainland partner. - From Express News Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.
