GUANGDONG Public Security Bureau (PSB) officials are holding many more luxury cars stolen from Hong Kong than are being returned to the territory, latest police intelligence suggests. Closer cross-border police ties are being used to gather more information from China on the problem, with local organised crime detectives fearing that cars are being returned to suit the political climate. Latest intelligence shows the cars are being kept in Shenzhen, with the timing of the returns dictated by PSB officials in Guangzhou. ''There is a certain amount of bureaucracy involved in China before a car can be sent back, but even so we have intelligence that cars are being stockpiled and only allowed through at a trickle,'' one source said. ''Certainly, many of the cars returned are in very bad shape and are not among the most glamorous we have been looking for.'' The third eight-car batch of this year was handed back to Hong Kong police on Tuesday along with two of Hong Kong's most wanted men in a ceremony at the Lok Ma Chau border involving senior Hong Kong Police and PSB officials. Most of the cars were stolen in 1991 and last year but one was reported missing this year. So far, 64 cars have been returned in 10 batches. About 830 luxury cars have been reported stolen from Hong Kong so far this year. South China Morning Post sources repeated statements that police were having to pay more than $100,000 in ''administration costs'' to Chinese officials for each batch returned. The money is drawn from a special ''Rewards and Special Services Fund'', used by Police Commissioner Li Kwan-ha to administer special projects such as information gathering and witness protection. However, official police spokesman Eric Lockeyear yesterday described the claim as ''total fabrication''. ''Not one cent - let alone the $100,000 claimed by the Post - has been or would be paid to recover these cars,'' he said. He also denied the fund was being used to entertain senior Chinese police. He said the return of the vehicles and fugitives on Tuesday ''exemplified the close liaison and co-operation between the RHKP [Royal Hong Kong Police] and the PSB in China''.