SUN Hung Kai Properties managing director Chan Goh-yuen says a decision will be made shortly on the amount of capital involved in the compensation for two pieces of land. The compensation is expected to amount to several billion dollars. As the group has sufficient liquidity, it will have no problems dealing with the compensation. As for its property development plans in China, Mr Chan says the construction of a shopping centre in Wangfujing will start in a few months' time. - WAH KIU YAT PO MANDARIN Oriental's Excelsior hotel says it has won a contract from British Airways to reserve 120 rooms every night for three years. Sources in the securities industry say this is good news as the deal will ensure occupancy rates are maintained at a high level. The industry has estimated that Excelsior is the second highest earner for the group, contributing more than 25 per cent of profits. - MING PAO A CHINA Investment executive says his company already has property investments in Huizhou, Guilin, Shanghai and Nanhai. As much as two billion yuan (about HK$2.69 billion) will be invested in a Nanhai project, the agreement for which should be signed within a month. The executive says the company will co-operate with a mainland partner to develop a 250-acre site, which can provide a gross floor area of 760,000 sq ft. China Investment has already invested 30 million yuan in the project. The land alone cost 300 million yuan to 400 million yuan and will take five years to develop. - SING TAO TIAN An China senior manager Sum Sai-tak says his company has applied to the Guangzhou authorities to set up a holding company to manage and invest in projects in the city.Tian An has a finance and investment company in Shanghai. Now that the company has been in China for more than 10 years, 40 per cent of its tax payments have been reclaimed. Mr Sum says the money will be reinvested in China. - ORIENTAL DAILY NEWS ACCORDING to sources in the securities industry, battery manufacturer Golden Power will seek a listing in the first half of this year to raise $40 million to $50 million. The company has appointed Standard Chartered Asia as its financial adviser for the listing. - HK ECONOMIC TIMES SHELL Electric says in its annual report for last year that its investment in the US property market will amount to $375 million. This investment has not been entered into the company's accounts for the year ended October 31. The company has actively invested in China but has made little previous mention of its large investments in the US property market. The company will also develop high-grade commercial and residential property in Guangzhou. - SING TAO CHUANG'S China chairman Hwang Jen says the company has signed a letter of intent with a department store in Zhenjiang to set up Zhenjiang Chuang's Department Store. Chuang's will hold a 55 per cent stake in the joint venture. The mainland partner will inject two stores and property into the venture, which will also develop a multi-purpose commercial centre with a floor area of 650,000 sq ft. - SING PAO ACCORDING to sources in the securities industry, the mainland party said to be acquiring a stake in First Pacific Bancshares could be either CTTIC or China Resources. Rumour has it that the mainland party will be identified today. - EXPRESS NEWS THE Union Bank has fallen behind other stocks in the banking sector. However, its share price has risen sharply recently amid market rumours that Beijing's Shougang is considering acquiring a stake in the bank. - EXPRESS NEWS MR Wang Yuming, deputy director of Yantai MOFERT in Shandong province, says Hutchison Whampoa has signed two letters of intent with the local government to set up a ferry and cargo service between Yantai and Dalian and to develop the 200 km road between Yantai and Qingdao into an express highway. - MING PAO PEACE Mark Holdings is said to be the target of a takeover attempt by a mainland organisation. Market rumour has it that China Aeronautics Investment Corp is the interested party. As Peace Mark is a watch manufacturer and China Aeronautics is involved in the aviation industry, the rumour is therefore questionable. - WEN WEI PO ACCORDING to sources in the securities industry, Morgan Stanley was yesterday mopping up blue-chip shares through programme buying, helping the Hang Seng Index to rise sharply. Morgan Stanley is estimated to have publicly bought more than $1 billion worth of shares. The reasons for its move are unknown. The market is extremely concerned about Morgan Stanley's high-profile action. Analysts say if Morgan Stanley is so intent on buying up Hongkong stocks, it could have placed orders privately rather than making a public stance to show that it did not want the market to fall. - 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.