SHKP received government approval in April for the construction of 564 three-storey blocks in Yuen Long. However, an SHKP sale of a similar development in the area shows that buyers prefer larger flats. SHKP has therefore decided to alter the construction blueprint to expand the floor area of each flat. Approval of the new plans should be given in the next couple of months. SHKP was given approval for another five projects, including three for industrial projects and two for residential projects.- ECONOMIC JOURNAL A SENIOR executive of the Hongkong stock exchange reiterated that mainland companies had to receive approval from watchdogs in Hongkong and China before injecting capital into their acquisitions. It is reported the exchange will demand that new majority shareholders be more transparent, part of the monitoring of affairs of shell companies. However, it is not known whether this demand will become a regulation.- ECONOMIC JOURNAL PRESSURED by the slowdown of the market last year, the earnings of Leefung-Asco have declined. Tang Yiu-kwan, financial director, says the company is striving to cut costs and spending on raw materials to increase competitiveness. However, the slow European recovery will have an impact and Mr Tang says the prospects may not be too good.- ECONOMIC JOURNAL ALTHOUGH the Hongkong market has fallen recently, with the Hang Seng Index down 10 per cent from its historic high, the price of Hang Seng Bank has held firm. Market sources believe the relatively strong performance by bank is based on a rumour that Shougang is co-operating with the Bank of China to acquire a 10 per cent stake in Hang Seng. The market also expects Hang Seng to post good results in the middle of August.- EXPRESS NEWS THE earnings of Kumagai (HK) are thought by a local brokerage to have relied too heavily on the mainland property market so it has downgraded the share rating. A director of Kumagai says the brokerage has no foundation for its claims. He says that althoughnew developments in Hainan are not as profitable as before, the company will not be discounting the properties in order to get rid of them.- MING PAO CHINA Light and Power has signed a letter of intent with the Shandong Electricity Company for the joint development of a power plant in the province. A feasibility report is expected by the middle of next year. The two sides will decide on their further co-operation.- SING TAO CHAN Tseng-hong, managing director of CIL Holdings, says the company's current share price does not reflect the potential of the group, which will develop a construction materials business in the near future to stabilise its income. Regarding construction projects, he says the company will step up the proportion of its mainland business. He does not think the company's profitability will be affected by the Chinese austerity programme, adding that the company plans to open five retail outlets on the mainland.- WAH KIU YAT PO LEE Chi-keung, a spokesman for Fong's Industrial, says the company's research and development and market exploration will reap returns. He adds that Fong's will appoint a market representative in the United States to prepare for its move to the North and South American markets. Mr Lee says the company is focusing on the mainland market, which accounts for 60 per cent of its revenue. Revenues from the US market account for only five per cent of total revenues. But following the establishment of the North American Free Trade area there will be more US and European print companies setting up plants in Mexico, increasing the demand for print machinery, thereby benefitting Fong's.- WAH KIU YAT PO Following the winning of a $220 million Housing Authority contract the share price of Shun Shing has moved up sharply. In the past three days the turnover of the stock has been above 10 million shares.- SING PAO ORIENTAL Dragon, whose main business is the entertainment industry, has attracted the interest of US investment funds and the company's share price has moved up sharply on the back of institutional buying from the States. Oriental Dragon has established a studio on the mainland and distributes its productions worldwide.- SING PAO CHINACHEM, with a low-profile approach to property sales, has changed its strategy to gain buyer confidence and strengthen its market position. A spokesman says the company is now using a computer lottery for selection of registered potential buyers. This is in line with market trends.- WAH KIU YAT PO Chinese Press Digest is produced by Corporate Information Services. For pre-publication service and other services, telephone 865 5006 or fax 865 5835.
