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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (4938)	9/30/1998 6:46:00 AM
From: TokyoMex	Respond to of 119973

CHINA: Companies ordered to repatriate dollar holdings By James Kynge in Beijing China yesterday ordered local enterprises to repatriate by tomorrow billions of US dollars they are believed to hold illegally, signalling an intensification in the country's battle against an alarming flight of capital. The order was part of a series of measures China was taking to bolster increasingly fragile confidence in its currency, the renminbi, and the wider financial system. Some of the measures, such as a planned crackdown on illegal activities among Chinese import agents, could significantly disrupt the operations of foreign companies that export to China through such agents. Other restrictions on foreign companies borrowing in renminbi, which were also announced yesterday, might hamper the inflow of foreign investment, executives and analysts said. Wu Xiaoling, the director-general of the State Administration for Foreign Exchange, acknowledged as she announced the measures that they would "inconvenience" foreign investors, but stressed that China remained committed to its "open door" policy. Ms Wu warned that Chinese companies that failed to comply with the order on repatriating funds would be punished, but she did not say how. It was unclear how much Chinese companies have deposited overseas but an official newspaper said they held about $20bn in foreign currency. Companies use a number of schemes to get round a prohibition on sending foreign currency offshore for anything but trade purposes. The most common is faking customs documents. Analysts said a repatriation of several billion dollars by tomorrow could have an impact on Hong Kong, where much of the money is believed to be kept. China hopes that the measures will ease market pressure on the government to devalue the renminbi by curbing capital flight and boosting domestic foreign exchange reserves. Although the renminbi is officially fixed at about RMB8.28 to one US dollar, the currency's black market rate is now at its lowest level this year.

To: TokyoMex who wrote (4938)	9/30/1998 6:47:00 AM
From: TokyoMex	Read Replies (2) \| Respond to of 119973

Another 35 houses in LTCM bail-out By William Lewis and Tracy Corrigan in New York. Additional reporting by Jane Martinson in London, Richard Waters in New York and Nikki Tait in Chicago The effort to rescue Long-Term Capital Management, the US hedge fund, has been broadened to include about 35 other financial institutions. According to people close to the fund, the institutions have agreed to extend liquidity to it through a variety of means, including a $900m syndicated loan. Others have agreed that they will waive margin calls temporarily. A 14-strong consortium yesterday took control of the troubled fund. It has agreed to inject $3.6bn of equity to save it from going into liquidation. The bail-out deal was signed late on Monday night, but only after about 35 financial institutions outside the consortium had been persuaded to extend credit and other liquidity to the fund. About nine members of the rescue consortium are also members of a 24-strong $900m loan syndicate which was arranged two years ago by Chase Manhattan. LTCM's attempt to draw down part of the loan facility two weeks ago is said by people close to the fund to have been one of the immediate catalysts for sending it into a liquidity crisis. A number of syndicate members refused to provide loan facilities to the fund. The consortium now owns 90 per cent of the fund. Original investors are likely to own two-thirds of the remaining 10 per cent, with the fund's partners holding the remainder. The partners will continue to receive fees from the management company. While known primarily for its bond arbitrage expertise - attempting to exploit differences between bond prices to make a profit - the fund is also known to have substantial equity arbitrage investments. Meanwhile, Liechtenstein Global Trust, was set to announce today that the collapse of LTCM could cost it up to $30m. LGT was not considering legal action "for the time being".