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T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
             A S I A   P A C I F I C      

      Tuesday, April 14, 1998, Vol. 1, No. 39

                    Headlines


C H I N A   &   H O N G   K O N G

CHINA SCI-TECH: New Excellence Proposes Sale of 51% Stake
LEI SHING HONG: 1997 Operating Results
WING SHAN: Announces Acquisition by Foshan Development

K O R E A

ASIA MOTORS: Proposes Self-Help Measures
DAISHIN: Company's Operations Likely to be Suspended
DONG-AH: Company's Operations Likely to be Suspended
DONGBU: Firm Subject to Restructuring
HANJIN: Firm Subject to Restructuring
KIA MOTORS: Demands Committee to Determine Company's Future
KIA MOTORS: Government Agrees to Sale in Open Bidding
KOREA TELECOM: Plans for Restructuring
SAMSUNG HEAVY: Construction Division Sold to Volvo
SSANGYONG: Firm Subject to Restructuring
SEOUL: Firm Subject to Restructuring
TONGYANG: Company's Operations Likely to be Suspended

M A L A Y S I A

SIME BANK: RHB Suspension Extended

T H A I L A N D

GS ASSET MANAGEMENT: Fund of Interest to Foreigners
KULTHORN KIRBY: Will Increase Exports to Stem Losses



=================================
C H I N A   &   H O N G   K O N G
=================================

CHINA SCI-TECH: New Excellence Proposes Sale of 51% Stake
---------------------------------------------------------
The board of directors of China Sci-Tech Holdings Limited
has been advised by New Excellence Holdings, the
controlling shareholder of the China Sci-Tech, which holds
approximately 51% of the issued share capital of the
company, that it is currently in negotiations with an  
independent third party to the possible sale of part of its
interest in the company. No agreement has yet been reached
and it is uncertain, therefore, whether sale will proceed.

The Board has noted the recent increase in the price and
trading volume of shares in the Company and wishes to state
that, save as referred to below, it is not aware of any
reasons for such an increase.  Investors should note that
New Excellence has emphasized that the size and pricing of
the Possible Disposal are still being negotiated and that
no agreement has been reached. It is uncertain, therefore,
whether the Possible Disposal will proceed. It is also
uncertain, if the Possible Disposal does proceed, whether  
there will be a change in the control of the Company.

Accordingly, the Possible Disposal may or may not lead to a
general offer obligation on the Potential Purchaser under
the Takeovers Code.

Investors are advised to exercise extreme caution when
dealing in the shares of the Company.

  By Order of the Board
  China Sci-Tech Holdings Limited
  Chiu Tao
  Chairman

  Hong Kong, 8 April, 1998


LEI SHING HONG: 1997 Operating Results
--------------------------------------
For the period from January 1, 1997 to December 31, 1997,
Lei Shing Hong Limited (stock code: 238) reported a net
profit of HK$94.3 million on turnover of HK$2.7 billion.
This compares to a net profit of HK$153.8 million on
turnover of HK$1.7 billion for the corresponding 1996
period. Exceptional Items included provisions for
diminutions in values of short term listed investments of
HK$183.3 million. The earnings per share for 1996 have been
adjusted to reflect the rights issue of 1 for 2 made during
the year.  (SEHK 09-Apr-1998)


WING SHAN: Announces Acquisition by Foshan Development
------------------------------------------------------
In the extraordinary general meeting of the Company held on
8th April, 1998, a number of ordinary resolutions,
including the approval of the Acquisition Agreement, the
Disposal Agreement, the Fuel Supply Agreement, the Note
Issue and the Consideration Issue, have been passed.

The directors of the Company refer to the Circular in
relation to a very substantial acquisition and connected
transaction, major and connected transaction, increase of
authorised share capital and general mandates to issue and
repurchase shares of the Company.

In the Extraordinary General Meeting held today, all
ordinary resolutions as contained in the notice of the
Extraordinary General Meeting, as set out in the Circular,
have been duly passed by the Company's shareholders in
respect of ordinary resolutions no. 2 to no. 4 and by the
Independent Shareholders in respect of ordinary resolution    
no. 1. The resolutions approved, inter alia, the
Acquisition Agreement, the Disposal Agreement, the Fuel
Supply Agreement, the Note Issue and the Consideration
Issue, which are expected to be completed on or before    
14th April, 1998. Further announcement will be made on the
Completion.

As a result of the above, upon the Completion, Foshan
Development will beneficially own 315,000,000 Shares,
representing approximately 61 per cent of the existing
issued share capital of the Company and 38 per cent of the
issued share capital of the Company as enlarged by the    
Consideration Issue.

    By Order of the Board
    Yip Siu Chun
    Chairman
    Hong Kong, 8th April, 1998


=========
K O R E A
=========

ASIA MOTORS: Proposes Self-Help Measures
----------------------------------------
Asia Motors Co., the commercial vehicle manufacturing arm
of the Kia Group, has proposed a set of self-help measures
for realizing normalization by the year 2003 to the
Ministry of Commerce, Industry and Energy. Ministry
officials said the measures include the selling off of
Asia's production site in Kwangju and moving to another
location for expanding its manufacturing volume. Should the
normalization program proceed as planned, Asia Motors said,
it should be able to register a turnover of 2.5 trillion
won for a profit of 100 billion won in 2003.
(Korea Times 13-Apr-1998)


DAISHIN: Company's Operations Likely to be Suspended
----------------------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Eleven life insurance companies which are short of payment
capacity (including Dong-Ah, Daishin and Tongyang) are
likely to have their operations suspended, while another
six financially strapped ones (including Pacific, Hansung
and Kumho) are expected to be merged with a third party
before the end of 1998.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


DONG-AH: Company's Operations Likely to be Suspended
----------------------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Eleven life insurance companies which are short of payment
capacity (including Dong-Ah, Daishin and Tongyang) are
likely to have their operations suspended, while another
six financially strapped ones (including Pacific, Hansung
and Kumho) are expected to be merged with a third party
before the end of 1998.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


DONGBU: Firm Subject to Restructuring
-------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Of the six brokerage houses which fail to meet the
operational net worth ratio of 150 percent -- Dongbang
Peregrine, Kyobo, Seoul, Dongbu, Ssangyong and Hanjin --
Dongbang Peregrine is scheduled to be merged with Daehan
Investment Banking and Kyobo plans to increase its paid-in
capital, leaving the remaining four subject to
restructuring.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


HANJIN: Firm Subject to Restructuring
-------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Of the six brokerage houses which fail to meet the
operational net worth ratio of 150 percent -- Dongbang
Peregrine, Kyobo, Seoul, Dongbu, Ssangyong and Hanjin --
Dongbang Peregrine is scheduled to be merged with Daehan
Investment Banking and Kyobo plans to increase its paid-in
capital, leaving the remaining four subject to
restructuring.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


KIA MOTORS: Demands Committee to Determine Company's Future
-----------------------------------------------------------
Kia Motors Corp. has demanded the creation of a special
body composed of government officials, creditors and
private experts to determine Kia's viability. Complaining
about recent efforts by the government and creditors to
sell Kia Motors to a third party, Park Je-hyuk, president
of the troubled motor company, said yesterday that Kia
opposes these moves and urges the two parties to establish
a special body to study and determine the company's
financial status and future prospects. At the same time,
Park continued, the Kia Group has decided to pursue an
option for joint management involving Asia Motors Co. and a
foreign company.  (Korea Herald 14-Apr-1998)


KIA MOTORS: Government Agrees to Sale in Open Bidding
-----------------------------------------------------
The government has tentatively decided to sell troubled Kia
Motors Corp. and its sister truck and bus maker Asia Motors
Co. in open bidding before August. Consequently, the
government has nullified earlier projection to turn Kia
Motors into a state-run corporation after converting loans
Korea Development Bank (KDB) extended to Kia into equity.
The initial decision was made late last week by Commerce,
Industry and Energy Minister Park Tae-young and
presidential secretary for economic affairs Kim Tae-dong,
following Park's briefing on the issue to President Kim
Dae-jung Wednesday.

They reportedly decided that Kia's paid-in capital will be
reduced and a new rights issue amounting to more than 50
percent of its paid-in capital will be floated to a third
party in open bidding. The court will decide on the scale
of the reduction of paid-in capital after an inspection of
the automaker.

A KDB official said, "We made a conclusion with the
Commerce, Industry and Energy Ministry that it is best to
sell Kia to a third party in open bidding after a new issue
without conversion of loans of creditors to equity. The
final decision will be made in inter-ministerial
consultations."

Once it is made, a working-level team from 85 creditor
financial institutions will be formed. The team will decide
on the scale of the new right issue after an inspection
along with the terms of debt repayments and criteria for a
takeover bid.

Two other subsidiaries of the Kia Group, Kia Steel Co. and
the construction unit Kisan Co. will also be sold to third
parties separately from the two motor units. Asia Motors
will be sold in a package with Kia Motors under conditions
that the Asia Motors plant in Kwangju not be relocated.

The government and creditors are determined to invite both
domestic and foreign potential buyers into the bidding. The
government plans to form a working-level team to oversee
the sale this week upon the appointment by the court of a
legal manager of Kia's assets. But the government's initial
decision will create opposition by employees of the Kia
Group and the public who hope Kia Motors remains a
"national" corporation independent of the business
conglomerates or chaebol.

Meanwhile, Hyundai and Daewoo are expected to team up to
take over the troubled automakers and Samsung Motors Inc.
and Ford Motor Co. are expected to jointly participate in
the open bidding, a market watcher said.

But problems lie ahead for a Korean chaebol hoping to take
over Kia as they are beset with huge amounts of debts which
must be reduced to a 200 percent level to paid-in capital
by the end of next year. They will also have to sell off
their subsidiaries or assets to raise money. Kia's assets
are estimated at 11 trillion won.  (Korea Times 13-Apr-1998)


KOREA TELECOM: Plans for Restructuring
--------------------------------------
Korea Telecom has launched full-scale restructuring of
businesses to do away with those that incur deficits. Korea
Telecom unveiled March 9 that they have reviewed their
current business structure and have categorized it into
four groups, the strategic fostering projects, future
projects, core proceeding projects and the to-be-improved
projects.

KT is planning to confirm and announce their restructuring
plan, including abolishing some projects around mid May,
after reviews on business practices. An official of the
planning division said, "The motive of restructuring is
focused on establishing their management frame based on
profits," and said, "We are at the stage of determining on
which businesses to abolish, through detailed inspections."

KT will be vigorously requesting to the Ministry of
Information to preserve businesses with strong public
benefits, such as administration communications and airport
communications, through providing subsidies for the
deficits incurred by the businesses of public interest.

A high-ranking official of KT explained, "As the  
competition grows fierce, maintaining the businesses that
inevitably create deficits will cause the entire company to
fall in a dilemma." The official explained the motive of
restructuring saying, "Unless the business structure is not
resolutely changed into a profit-oriented structure, we
will not be able to survive."  (Korea Times 10-Apr-1998)


SAMSUNG HEAVY: Construction Division Sold to Volvo
--------------------------------------------------
Samsung Heavy Industries says it expects to sell its
construction-equipment division to a unit of Swedish auto
maker Volvo in a deal valued at $765 million. The big
Korean shipbuilder says the sale would be the largest ever
by a South Korean company to foreign interests.
(Wall Street Journal 13-Apr-1998)


SSANGYONG: Firm Subject to Restructuring
----------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Of the six brokerage houses which fail to meet the
operational net worth ratio of 150 percent -- Dongbang
Peregrine, Kyobo, Seoul, Dongbu, Ssangyong and Hanjin --
Dongbang Peregrine is scheduled to be merged with Daehan
Investment Banking and Kyobo plans to increase its paid-in
capital, leaving the remaining four subject to
restructuring.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


SEOUL: Firm Subject to Restructuring
------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Of the six brokerage houses which fail to meet the
operational net worth ratio of 150 percent -- Dongbang
Peregrine, Kyobo, Seoul, Dongbu, Ssangyong and Hanjin --
Dongbang Peregrine is scheduled to be merged with Daehan
Investment Banking and Kyobo plans to increase its paid-in
capital, leaving the remaining four subject to
restructuring.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


TONGYANG: Company's Operations Likely to be Suspended
-----------------------------------------------------
Thirty-seven Korean securities, insurance and leasing
companies have been required to either shut down or merge
and/or be absorbed by a third party as the restructuring of
the domestic financial industry continues, the Korea
Institute of Finance (KIF) said yesterday. It added that
the financial industry's restructuring, carried out in a
step-by-step manner, should be completed before the close
of 1999. KIF forecast that the restructuring of the
leasing, securities, and life insurance companies would
occur in the first half, investment trust companies in the
second half and the remainder during the next year.

Eleven life insurance companies which are short of payment
capacity (including Dong-Ah, Daishin and Tongyang) are
likely to have their operations suspended, while another
six financially strapped ones (including Pacific, Hansung
and Kumho) are expected to be merged with a third party
before the end of 1998.

The KIF has estimated that a total of 63 trillion won ($45
billion) will be required for the restructuring of the
domestic financial industry by the end of next year.
(Korea Herald 14-Apr-1998)


===============
M A L A Y S I A
===============

SIME BANK: RHB Suspension Extended
----------------------------------
Rashid Hussain Bhd (RHB) and its financial arms, RHB
Capital Bhd and RHB Sakura Merchant Bankers Bhd, has yet to
make a full announcement on the details of the proposed
acquisition of Sime Bank Bhd. The Kuala Lumpur Stock
Exchange in a circular to its members, extended the
suspension on the three companies from Tuesday until Friday
to allow them to make the full announcement on the details
of the proposed funding scheme for the acquisition of Sime
Bank for the purpose merger with RHB Bank and the
recapitalisation of the merged RHB Bank.

The additional four market days of suspension were given
following the expiry of the previous six additional market
days of extension given from April 6 to April 13. On April
10, RHB took over the management of Sime Bank, which
suffered RM1.8 billion losses for the half year ended Dec
31, 1997. Sime Bank is said to be in need of RM1.2 billion
in capital injection to stay afloat.  (The Star Online
13-Apr-1998)


===============
T H A I L A N D
===============

GS ASSET MANAGEMENT: Fund of Interest to Foreigners
---------------------------------------------------
Foreigners are allowed total ownership of Thai mutual fund
companies in a bid to clear up stakes held by defunct
finance houses. Previously, foreigners have been limited to
25%, said Chalee Chantanayingyong, director of the
department of investment management supervision.

The Financial Restructuring Authority has been looking at
ways of disposing of equity in mutual funds held by the 56
finance firms closed down last December. Among funds said
to be of interest to foreigners is GS Asset Management, in
which the largest stake is held by General Finance, one of
the closed firms.

M.L. Pakakaew Boonliang, chief executive of GS Asset
Management, said although foreigners were interested in
local mutual funds, she felt more comfortable with Thai
rather than foreign investors because marketing of units
focused on the domestic market. But funds with major
foreign equity could have the advantage of access to
comprehensive information and analyses from abroad.

Narong Pattamasaeve, the authority's assistant secretary-
general, said equity sales in mutual funds would be
discussed further next Monday.  (Bangkok Post 13-Apr-1998)


KULTHORN KIRBY: Will Increase Exports to Stem Losses
----------------------------------------------------
After suffering the first loss in its 18-year history,
Kulthorn Kirby Plc (KKC), the country's leading compressor
manufacturer, is looking to increase exports to reverse the
trend and earn foreign currency. Last year's loss was due
to a combination of foreign-exchange losses and slowing
sales of compressors due to the domestic economic slump. It
occurred despite a vigorous effort to reduce costs by
reducing working hours, cutting overtime and freezing staff
numbers.

To help improve the prospects of exports the company is in
the process of improving products and processes in order to
obtain ISO 9000 quality certification. Established in 1980
and listed on the stock market in 1991, KKC and its
affiliates have produced more than nine million units
compressors for refrigerators, and about one million
compressors for air-conditioners.

The company's initial registered capital of 50 million baht
was raised recently to 150 million baht. This year it plans
to double registered capital to alleviate a cashflow
shortage.

An analyst with a local financial institution noted that
KKC's performance had been affected by forex losses because
it had substantial loans from abroad, particularly from
Japan, to fund the expansion of its projects.

He said the local compressor and air-conditioner market was
saturated at the moment, so companies such as KKC know that
they have to export to improve liquidity. However, the
analyst said that the outlook for the compressor and air-
conditioner sector should improve now that the economy had
nearly bottomed out, and the baht was becoming more stable
against the US dollar.  (Bangkok Post 13-Apr-1998)



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