THE main focus of smaller company trading yesterday was the resumption of trading in Pam & Frank shares. The shares had been suspended since June 18, 1993, pending the outcome of inquiries by the regulators into allegations of financial malpractice and misleading financial information at Pam & Frank. A former employee who made the allegations was allegedly behind demands for money. Some of the allegations linked to the blackmail case concerned the apparent falsification of sales and purchase vouchers, many of which were part of documentation found by the authorities to have been prepared by the employee responsible for the blackmail attempt. Allegations had been made of a $22 million overstatement of profit in 1992. However, an understatement of stock had been found of a similar value, allowing the profit for the six months to September 1992 to remain unchanged. Regulators said the lifting of the the suspension of share trading was because of the prolonged period of suspension and because a resumption of trading, in the face of continued uncertainty at the company, was in the best interests of investors. Pam & Frank was the worst performing stock on the exchange yesterday, losing 15.59 per cent. The counter plummeted from $1.86 to $1.57 on a turnover of $1.49 million. There was also heavy turnover in HKR International, the property development company behind the Discovery Bay project. HKR has sold half of its interest in the Discovery Bay project to CITIC Pacific for $3.4 billion. The stock recorded a turnover of $256.98 million, which was the eighth-highest overall, and the price edged down from $11.10 to close at $10.50 on 25.83 million shares traded. Regal Hotels was the third best performing stock, rising 10.35 per cent on a turnover of $36.28 million. Its share price increased from $2.175 to $2.40. Regal owns four properties in Hong Kong including the recently opened Regal Hong Kong Hotel in Causeway Bay. Three stocks with extensive interests in China were also among the best performers of the day. Leading the charge was mainland-backed Shanghai International, which rose from $2.60 to $2.825 on a turnover of $14.24 million. Formerly Ong securities, the company came under the control of mainland company First Shanghai Investments in July 1993. Shanghai International is involved in helping mainland companies list in Hong Kong and China. Emperor (China) rose 7.41 per cent to $7.25, from $6.75 on Monday. Property and investment group Emperor has interests in the Emperor Centre in Hennessy Road, which will soon be completed. The company also has a substantial interest in Hong Kong Daily News, publisher of one of the territory's leading Chinese-language newspapers. Electronics manufacturer China Aerospace moved up 6.93 per cent to $2.70 on a turnover of $10.37 million. The company manufactures Television sets and other electronic components, and is majority mainland owned.