THURSDAY, APRIL 29
DUE to the slowdown in the construction business, Hsin Chong Consortium plans to take on construction projects in Beijing. Its Malaysian subsidiary has successfully bid for a project there valued at $120 million. Mr Ka Kui-chan, managing director, says the company will set up joint ventures with mainland corporations to undertake projects. Agreements should be reached in the next few weeks. - MING PAO THE share price of National Mutual has been under pressure lately. According to sources in the securities industry this is because Baring Securities recently downgraded the stock. Baring has reduced its earnings forecasts for National Mutual for the year 1993-94. The main reason is the government delay in implementing its compulsory pension fund legislation, thereby constricting the potential growth of the insurance business in Hongkong. - MING PAO AFL-CIO, the umbrella organisation for trade unions in the United States, is lobbying to prevent imports of China's cheap prison-made goods and urging US consumers to steer clear of these products. It is reported that Ninja Turtle products are on the hit-list simply because they are assembled in China. - HK ECONOMIC TIMES GUANGZHOU Investments plans to construct a power station near the site of the Pearl River delta cement factory in which it earlier purchased a 51 per cent stake, sources say. At the moment, fuel costs of the cement factory amount to 25 per cent of the plant's total costs. - HK ECONOMIC TIMES DYNAMIC Holdings has released a statement saying the company is aware that its share price and turnover have increased sharply of late; however, it was unable to offer an explanation for the movement. - HK ECONOMIC TIMES CD-ROMs and laser video karaoke machines are providing Alco Holdings with 10 per cent profit margins. Sales have been outstanding and it is expected that these products will become its major source of income in the future. It is calculated that Alco's profit in the first year of listing will be close to expectations. However, in the fiscal year ending March 1994, profits could increase to $100 million, well above expectations. - SING PAO SOURCES say CITIC (Hongkong), a subsidiary of CITIC (Beijing), is planning to raise a US$100 million syndicated bank loan covering a period of five years to provide capital for its development plans for the Shanghai cross-harbour tunnel. Two bank consortiums are interested in the provision of the loan and a result is expected by the middle of next month. CITIC has a 50 per cent stake in the tunnel, along with the Shanghai city government. - SING PAO THE share price of Paladin has fallen from $1.70 to $1.30 recently. However, the price has rebounded amid rumours that China Non-ferrous Metals Corp may buy into the company. If a stake is acquired it is thought it will be that of the major shareholder, the Taiwanese Oung family. - SING PAO MR William Fung, managing director of Li & Fung, says the company's retail business has seen healthy growth. Turnover in its retail business was $1 billion last year. Li & Fung will enter the mainland market this year, with a move into Shanghai with its bakery outlets. The company has already signed letters of intent with the Dairy Co of Shanghai. At present, the company does not intend to move into the China toy market like its competitors. The main reason is because Li & Fung imports 70 per cent of its toys from overseas and an 80 to 90 per cent duty would be placed on these imports. - SING TAO MR Nelson Yuen, managing director of Hang Lung Development, discloses that the company will complete with New World Development and Henderson Land for the development rights to the country park section of the Route Three project. Hang Lung will be submitting a proposal before the Friday deadline. - HK ECONOMIC JOURNAL GOLDLION, whose store in Beijing was opened on Wednesday, will set up stores in other provinces in China in the next one or two months. The company now has 10 retail outlets on the mainland. - HK ECONOMIC JOURNAL CHINA Overseas Land & Investment is raising $200 million through a syndicated bank loan for the redevelopment of a site in To Kwa Wan. Sources in the banking industry believe that because the interest rate on the loan is attractive and the potential for development in To Kwa Wan is excellent, the deal should be completed within two weeks. The interest rate is two points above LIBOR. - HK ECONOMIC JOURNAL THE Emperor Group has sold a property in On Lan Street, Central, for $80 million. The buyer is a group with mainland backing. The total floor area of the building is 18,142 square feet, which represents an average price of $3,137 per sq ft. The building was constructed in 1976. - 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.