THE newly appointed president of Lingnan College, Executive Councillor Edward Chen Kwan-yiu, wants the institution to be a quality liberal arts college in the territory, after he takes over next year. Speaking at a press conference to announce his appointment last week, Professor Chen, who is also director of the Centre for Asian Studies at the University of Hong Kong, said there was a market demand in Hong Kong for a liberal arts college of international standards. The college is expected to offer specialised training in arts, social sciences, humanities and language studies. ''We would like to produce high quality students. With 2,000 students I think we will be able to achieve this goal,'' Professor Chen said. He said that recruiting qualified teaching staff and establishing an undergraduate teaching quality assurance system will be his prime objectives as the new president. The new campus and hostel in Fu Tei, Tuen Mun, expected to be ready next year, will boost both social and academic life on campus as the college expects to achieve a 100 per cent student residency in the future. Professor Chen will take up the post on September 1, 1995 following the retirement of Dr John Chen Tso-shun, who had been serving as president for 10 years. Professor Chen's term will be for five years.