MANDARIN Dragon Holdings has announced a $71.2 million placement of 20 per cent of the company's existing share capital to fund several joint-venture projects in Hongkong and China.

The company recently signed a letter of intent with two Chinese parties to take a 51 per cent stake in a Chinese medicine factory near Taishan in Shandong province.

Commenting on the development, Mandarin Dragon chairman Johnson Ko said he was confident about the market potential in China.

''Drugs manufacturing and distribution is one of our core businesses. I believe this new venture will give us a strong foothold in China, where the potential for pharmaceutical products is huge.'' In addition to the Chinese medicine factory at Taishan, Mandarin Dragon also plans to invest $15 million to set up a 50-50 joint venture company with Win's Music & Video Enterprises (Hongkong).