WEDNESDAY, APRIL 21
MR Simon Murray has decided to resign from his position as managing director of Hutchison Whampoa and will return to the United Kingdom after leaving the company. Analysts are guessing that Mr Richard Li will take the helm. However, some are worried abouthis age, his lack of experience and his ability. Analysts believe that such an appointment would affect the image of the company's management and the confidence of investors. Some say Mr Li Ka-shing will always be behind the scenes guiding his son.
Some believe that since Hutchison Whampoa is doing more business in China, Mr Richard Li would be better suited to the job than Mr Murray. - HK COMMERCIAL DAILY A SENIOR executive of Guoco confirms the group has submitted a letter of intent to the Government regarding the purchase of the Overseas Trust Bank. A consortium earlier expressed interest in co-operating with Guoco but at the time Guoco wanted to bid alone. However, the executive says the possibility of future co-operation remains. Dao Heng Bank, the banking subsidiary of Guoco, has 46 branches. A purchase of Overseas Trust Bank, with its 43 branches, would enhance the group's competitiveness. If a takeover fails, other ways of buying Overseas Trust Bank will be considered. - SING TAO THE hotel industry in Hongkong is now considered to have good prospects and potential predators are eyeing a few properties. As well as the Ritz-Carlton in Central, the City Garden Hotel in North Point is attracting attention. It is said that one group hasalready offered $1.5 billion for City Garden. A spokesman for the Sino Group says a number of offers have already been made for the hotel, but that as the group is confident about the sector's future it will not sell unless it gets an exceptionally good offer. He says an offer of $1.5 billion does not come under this category and that Sino Land itself intends to buy more hotels in Hongkong. - TA KUNG PAO MR Cheung Hon-kit, executive director of Kwong Sang Hong Holdings, says the company is co-operating with the Kerry Group through its Shanghai property development company to build a multi-use development in Shanghai. The project will require an investment of $1.7 billion. Mr Cheung says Kwong Sang Hong has about 20 different developments under way in Shanghai, Guangzhou, Hainan, Beijing and Fuzhou. - HK ECONOMIC TIMES LUKS Industrial shares have recently been strongly recommended and promoted by Jardine Fleming. The company has issued a number of convertible bonds through Citicorp Vickers and it is thought it will use the money raised to continue its investments in Vietnam and China. - HK ECONOMIC TIMES A RELIABLE source says no deal between Shougang Holdings, Chevalier International and IHD will be concluded in the near future. Earlier reports suggested that Shougang intended to invest in IHD. Shougang's discussions with Chevalier are said to be only ata preliminary stage, and an agreement is a long way off. - HK ECONOMIC JOURNAL IT is said that CITIC (Beijing), which recently bought Continental Mariner, will inject its transport business into the company. - TIN TIN DAILY NEWS PEREGRINE Capital is rumoured to be putting together a restructuring plan for Guangdong Investments. This may involve splitting some of the group's business for a separate listing and raising additional capital. - TIN TIN DAILY NEWS MR Yu Ching-po, managing director of Kumagai Gumi (HK), says his company is considering building an oil refinery in Hainan with, among others, Royal Dutch Shell. - TIN TIN DAILY NEWS CHEUNG Kong is rumoured to be co-operating with Glynhill International on the development of eight million square feet of farmland in Yuen Long. The development would be similar to Kingswood Villas in Tuen Mun.- TIN TIN DAILY NEWS THE board of directors of Paragon Holdings, noting fluctuations in the price of the company's shares, says a number of projects are being considered that may mean capital has to be raised. - MING PAO MR Stuart Burnett, financial director of the Mandarin Oriental Hotels Group, says the group will spend about $100 million on renovating its two hotels in the territory. He says business for the first quarter reached expectations but that profits for the Oriental in Macau will fall. Stockbroker Hoare Govett says that while Mandarin Oriental should see good profits growth over the next two or three years, this is already reflected in the share price. It recommends selling the shares. - MING PAO MR So Auk, general manager and assistant director of New World Development (China), says his company is considering establishing department stores in Xiamen, Shandong and elsewhere. He says New World has shelved its plan to buy into Beijing's Tianqiao department store because the store is currently applying for a stock exchange listing elsewhere. - SING TAO Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.