Biz Scene: Grapevine

China Daily | Updated: 2007-11-06 07:06

Shipping stake

Goldman Sachs Group Inc and other overseas funds are close to finalizing a deal to buy a minority stake in Chinese shipbuilder Rongsheng Heavy Industries Group for about $600 million, Reuters reported yesterday, citing sources.

"Rongsheng wants to bring in strategic investors before its initial public offering. Goldman and some other foreign funds have expressed interest in it," the report quoted one of the sources as saying.

It quoted another source as saying the Wall Street bank was among Rongsheng's potential investors and that an agreement had been reached on price, although the final documents had not yet been signed.

AIG in talks

AIG is in talks to invest in a small Chinese credit guarantee firm as the US insurer aims to move into China's fast growing market for lending services for small and medium-sized enterprises, Reuters reported yesterday.

AIG is close to finishing its due diligence in Chengdu Small Enterprise Credit Guarantee Co Ltd in Southwest China and is expected to take a minority stake in the firm, the report quoted unnamed sources as saying.

Chengdu Credit, in which the State Secretariat for Economic Affairs of Switzerland holds a 43.52 percent stake, plans to attract new investors to boost its capital as it wants to expand its lending and credit services, the sources said.

(China Daily 11/06/2007 page15)