Biz Scene: MARKET

Factory gets go-ahead

Anhui Jianghuai Automobile Co, a mid-sized Chinese automaker, said yesterday it has obtained regulatory approval to invest 837 million yuan in a truck manufacturing project.

Jianghuai Auto said the facility would be able to make 40,000 medium- to heavy-duty trucks a year and generate an estimated 4.48 billion yuan in annual sales and 224 million yuan after-tax profit.

The company said the project would take six years to complete from the time of its launch, although it did not give a timeframe.

Insurer boosts units

China Life Insurance Co, the world's largest life insurer by market value, said it will inject 3 billion yuan into its property and casualty unit.

The Beijing-based insurer will also inject 1.9 billion yuan into its pensions unit, it said in a statement to the Shanghai Stock Exchange yesterday. China Credit Trust Co will take a 1.8 percent stake in the unit, according to the statement.

New model

Gome Electrical Appliances Holdings Ltd, China's biggest electronics retailer, plans to adopt a low-pressure, no-commission sales model similar to Best Buy's that may boost costs but it hopes will lure more customers.

Gome, which operates 760 stores across the country, said yesterday its first no-commission store, sporting a new logo and product displays laid out by type rather than brand, will open in Shanghai this weekend.

(China Daily 11/30/2007 page15)