IN BRIEF

Technology

Vice-premier meets Apple CEO in Beijing

Vice-premier Li Keqiang said that China will strengthen intellectual property rights protection and continue to transform its economy when meeting CEO of Apple Inc Tim Cook in Beijing on March 27.

"The government will make the most of the development of science and technology to uphold innovation capabilities," Li said. He also called for international companies such as Apple to work with local partners and to move into China's central and western regions.

Cook said Apple will work more closely with China in every possible way and will operate in accordance with the law and in good faith. He was making his first visit to the country since he took over the top executive position at Apple from co-founder Steve Jobs.

Aviation

Qantas, China Eastern plan HK budget airline

Australia's national carrier, Qantas Airways Ltd, has entered into an equal joint venture with China Eastern Airlines Corp to set up a Hong Kong-based low-cost carrier.

Qantas will enter the alliance through its low-cost unit, Jetstar, which already runs joint-venture airlines in Singapore, Japan and Vietnam and its own airline in Australia and New Zealand.

Under the latest tie-up, China Eastern and Qantas will invest up to $198 million (148 million euros) over three years, which will start in mid-2013 with three Airbus A320 aircraft, Qantas said. The fleet is expected to reach 18 by 2015.

Qatar Airways launches flights to Chongqing

Gulf carrier Qatar Airways has set up an office in Chongqing and has started offering Doha-Chongqing flights, the first direct air link between southwest China and the Middle East, the Chongqing government reported.

Qatar Airways now operates flights between Qatar's capital Doha and Chongqing three times a week and plans to increase the service to five times a week this year, said a market specialist with Qatar Airway's Chongqing office.

He said Qatar will also set up a call center in Chongqing this June to deal with requests concerning the carrier's China market services.

Energy

Sinopec to continue overseas investment

China Petroleum & Chemical Corp, or Sinopec, will continue to invest overseas in unconventional natural gas and oil to boost its output and offset losses in its refining operations, chairman Fu Chengyu said.

Fu said the company would concentrate on oil and natural gas resources overseas, including shale oil, shale gas and other unconventional resources. He expects to see a rapid increase in natural gas output, mainly from unconventional sources, in the next five years.

Sinopec President Wang Tianpu added that the company is also looking at investment opportunities in refining and petrochemicals, as well as warehouse and logistics operations overseas, to integrate its upstream and downstream business.

Finance

Minsheng Bank seeks HK$11b in share sale

Non-State lender China Minsheng Banking Corp plans to raise about HK$11.2 billion ($1.4 billion, 1.1 billion euros) in a Hong Kong share sale to shore up capital amid tightened rules for risk buffers.

The Beijing-based bank is offering 1.65 billion shares at HK$6.79 apiece, representing a discount of 5 percent from its last closing price on March 23, according to a company statement.

The China Banking Regulatory Commission said in August that it would require the country's largest, or so-called systemically important, lenders to have a minimum capital adequacy ratio of 11.5 percent by the end of next year. Smaller banks would be required to have at least 10.5 percent. Minsheng's capital adequacy ratio stood at 10.86 percent as of Dec 31, while the core ratio was 7.87 percent.

Auto

BMW recalls 120,000 vehicles in China

German luxury carmaker BMW Group will recall 120,246 vehicles in China for repairs beginning May 10 due to potential problems with a battery-cable cover, China's quality watchdog said on Mar 27.

The recalled vehicles include the BMW 5 and BMW 6 Series models made in China as well as those imported between 2003 and 2010, according to a statement on the website of the General Administration of Quality Supervision, Inspection and Quarantine.

BMW said the battery cable cover inside the boot of the vehicles may be incorrectly mounted and result in the electrical system malfunctioning, the vehicle failing to start and, in some cases, charring or fire.

Dairy

Mengniu to reduce costs, broaden range

Dairy producer China Mengniu Dairy Co Ltd aims to expand its product portfolio and improve cost controls this year to keep expanding its business, which was harmed by a safety scandal late last year, according to a company official.

The company's sales were affected "to some extent" after a government quality regulator found aflatoxin, a substance that can cause cancer, in a batch of its milk in December, said Wu Jingshui, executive director and chief financial officer of the company.

To build up consumer confidence and ensure quality, Wu said Mengniu would spend 3 billion yuan ($476 million, 357 million euros) to 3.5 billion yuan in the next five years to establish its own farms.

Mengniu reported a net profit of 1.59 billion yuan last year, with a year-on-year increase of 28.4 percent. Its gross profit margin stood at 25.7 percent, the company said.

China Daily-Agencies