HOPEWELL Holdings, building the super-highway linking Guangzhou and Hongkong, has bought the development rights to a large plot of land along the highway. The 1,000 acres in Zengcheng which will be developed into a small town having commercial, residential and entertainment districts. - WAH KIU YAT PO WINSOR Industrial says it has signed a letter of intent with Wugang, a steel company in Wuhan, to establish a joint company registered both in Hongkong and Wuhan. Winsor will have a 51 per cent interest in the company and Wugang will hold the remaining stake. The new company will be involved in a number of divergent developments aimed at modernising Wugang's operations, including the introduction of new technology from abroad, construction of new facilities and the introduction of new management techniques. - ECONOMIC TIMES WING On International has established a department store in Tianhe, Guangzhou, in co-operation with a Guangdong company. The investment for the project is US$12 million and Wing On will have a 70 per cent stake. The new company will apply to the State Council of China for import and export rights. - ECONOMIC TIMES SIXTY units of the Mega Trade Centre in Tsuen Wan were put on sale on Friday and 90 per cent was sold at an average price of $3,194 a sq ft. Sources in the property market believe that most of the buyers were investors. Forty per cent of the 72 units of Orion Court in Yuen Long were sold on the first day at a price of $2,754 a sq ft.
A residential development in Tsuen Wan developed by Sun Hung Kai Properties will accept registration from today until Wednesday and the sale of units in Block 6 will begin on Saturday. Average price is $3,005 a sq foot, a 12.3 per cent increase on the price of another block of the development put on sale last month. - ECONOMIC TIMES HYSAN Development will organise a syndicated loan worth $2 billion to finance the redevelopment project for Lee Gardens Hotel, banking industry sources say. Of this, $700 million will be used to pay the land premium, $1.1 billion for construction and $300million for interest payments.
The interest rate will be 1.25 percentage point above the Hongkong interbank rate and Hang Seng Bank will arrange the loan. Elsewhere, a five-year syndicated loan of $2.3 billion organised by CITIC Pacific has received an unenthusiastic response, mainly because the rate of interest is considered too low. - ECONOMIC TIMES NEW World Development is demanding that the deadline for repayment of a $500 million loan raised in 1990 be delayed, banking industry sources say. The loan was agreed on July 8, 1990 and covered a period of three years, sources say. The loan was to finance the privatisation of the New World Hotel. The deadline for the loan was Friday and members of the bank syndicate have approved a temporary delay in repayment. New World has appointed Wardley to persuade the members of the syndicate to delay repayment by three to 31/2 years. - MING PAO THE share price of CITIC Pacific has been under pressure of late, falling more than 20 per cent over the past couple of months. There are market rumours that the company needs to raise capital and fears that the austerity policies of the Chinese Government will adversely affect its motor vehicle business. - MING PAO SUN Wenjie, vice-chairman and deputy director of China Overseas, says the austerity programme introduced by the Chinese Government will not affect the company's operations and China Overseas will continue to increase its investment in the mainland property market.
He says the credit tightening for Chinese property investment will only affect weaker companies and will be beneficial to developers with ample capital. China Overseas will introduce two residential development in the New Territories to the domestic market later this year. - MING PAO THERE are rumours in the market that Cheuk Nang Properties is the target of a mainland company seeking a back-door listing. Analysts say the firm has a Malaysian project in the offing and the rumours might have been spread to increase the share price and pave the way for a rights issue. They warn investors to be careful. - SING PAO THE share prices of shell companies have recovered following major corrections and the most outstanding performer has been Ong Holdings. Chee Shing's price movements are worth watching as well. The company has been acquired by China Metallurgical, a largemainland concern, and it is believed that Chee Shing will benefit from its parent's support. It was reported that China Metallurgical originally planned to purchase more than one Hongkong company but it eventually chose Chee Shing because of its pure business operations. This makes the calculation of a takeover price much easier. - SING PAO DESPITE the uncertain outlook for the stock market, many companies have been buying back shares. The firms most active include C.P. Pokphand, E & E Bermuda, Lippo Group and World International. Earlier, Chinese Estates and Century City were most active. The price of C.P. Pokphand has dropped sharply lately, but the company has been buying back large lots of its own shares. On Thursday 4.822 million shares worth approximately $10 million were bought back. This is viewed by analysts as a show of confidence by the company in its own stock. - SING PAO ZHANG Yonglin, managing director of Guangdong Investment, says the company will soon buy a power plant in Guangdong province and expand it. Investment will be more than US$100 million. The company is considering an issue of convertible bonds to finance the acquisition. Mr Zhang says there is a shortage of electricity in Guangdong, and many old power plants do not have sufficient capital for modernisation and expansion. Revenues from power plant operations are very stable and operators can revise electricity charges upwards slightly each year, making investment in power plants a very viable proposition, he says.
Elsewhere, the company is considering an investment in construction materials. Guangdong Enterprise, its parent company, has been involved in such projects and is considering an injection of these assets into Guangdong Investment next year. - ORIENTAL DAILY A SENIOR executive of Henderson Land says that a residential development by the company in Shenzhen is expected to be on the Hongkong market in October. The development comprises residential and commercial units and a shopping mall, and contains two blocks with a total floor area of 3,500 sq m, all of which will be put on sale overseas. The executive points out that properties in Shenzhen for sale overseas command an average price per square foot of $1,100 and construction cost, including interest payments, is $600 to $700. - ORIENTAL DAILY NEWS CNT Holdings has issued a statement denying that the company is to be sold. The share price dropped immediately after the denial, closing at $1.08 which represented a fall of six per cent on the day. There had been rumours that CITIC Pacific and GuangdongTrust and Investment were involved in acquisition talks, driving the price of the stock to $1.15 at one point on Thursday. - EXPRESS NEWS THE eighth floor of Peregrine Tower changed hands for $108 million on July 1, according to information from the Government Land Office. The purchaser was Luckshare Investment and the vendor was Gorlitz, a subsidiary of the French company Hulmia Inc. On the basis of 14,000 sq ft total floor area, this represent a price per square foot of $7,700. Since June, Hulmia has sold five floors of Peregrine Tower and has raised $630 million. - MING PAO Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.
