Biz Scene
MARKET
Strong earnings
CITIC Securities Co, the largest brokerage by market value in the Asia-Pacific region, said its 2007 profit is expected to rise more than 400 percent compared with the previous year, citing an unaudited preliminary assessment, without giving detailed financial figures.
CITIC Securities shares, trading at 28.7 times the estimated earnings, soared 233 percent in 2007. The company, which earned 2.4 billion yuan in 2006, is scheduled to release audited results on March 20.
Profit forecast
China Merchants Bank, China's sixth largest bank, said its 2007 profit probably more than doubled as demand for loans grew.
Net income rose 110 percent last year, the Shenzhen-based company said in a statement to the Hong Kong stock exchange, citing unaudited figures.
Third-quarter profit at China Merchants more than doubled to 3.9 billion yuan. The bank's Hong Kong-listed shares traded at 33.7 times the estimated earnings, compared with 20.1 times for larger rival, the Industrial and Commercial Bank of China, and 27.7 times for Bank of Communications.
Beer price rise
Tsingtao Brewery Co Ltd, one of China's top three beer producers, has recently increased the price of some products, said its spokesperson Yuan Lu.
"The price hike covers only a few categories, and there will probably be another increase after the Spring Festival," said Yuan.
The move comes as the costs of raw materials, packaging and transport surge, and also after rival Yanjing Beer marked up its prices in December.
BIZ MOVES
Executive quits
China Southern Fund Management Co Ltd, China's first officially approved fund management company, said Deng Shaoming resigned as its deputy general manager and left his post yesterday, citing personal reasons.
Deng has been in charge of the company's employer annuity business.
New deputy director
China's State Administration of Foreign Exchange named Wang Xiaoyi as one of its four deputy directors.
Wang was formerly the agency's chief economist. He replaces Wei Benhua, who has retired, the administration said on its website.
Wang worked for various departments at the People's Bank of China and held positions at the International Monetary Fund on behalf of the government before joining the regulator.
GRAPEVINE
Shipbuilder stake
An investment unit under Goldman Sachs Group Inc has agreed to buy about $50 million worth of shares in Chinese shipbuilder Yangfan Group Co, Reuters reported, citing two people it didn't identify.
The unit is expected to become a 20 percent shareholder in one of China's oldest shipbuilders, based in the eastern coastal province of Zhejiang.
Late last year, Goldman and other international funds bought a $600 million stake in Yangfan's bigger rival Rongsheng Heavy Industries Group, Reuters said, citing unidentified sources.
Consulting committee?
China Investment Corporation (CIC) is considering building an international consulting committee, 21st Century Business Herald reported, citing a source close to the company.
The Financial Times recently reported CIC, the country's new $200 billion foreign exchange fund set up last September, plans to approach Alan Greenspan, the former chairman of the US Federal Reserve, to be a consultant.
"The idea of the consulting committee is true, and there are also many other big names recommended, but CIC has not contacted anybody," the Chinese newspaper quoted the source as saying.
A researcher from CIC said Greenspan would not sign an official agreement with the company, even though he accepted the invitation, but would give lectures when he visits China.
BIZ UNUSUAL
Mini me
Personalized ceramic figurines are the latest craze for young shoppers on Taobao, China's largest consumer-to-consumer trade site.
The Taobao business makes miniature figurines based on customers' photos. Shoppers can choose the gesture and expression of the statuettes.
A sample figurine is delivered to the customer a few days later, and the producer then makes alterations as necessary. It usually takes a week for the client to get the finished product.
But handcrafted, personalized ceramic figurines don't come cheap. Each custom-made statuette goes for about 300 yuan.
Going like hot cakes
An apple pastry eaten on a business trip to Seattle in the US last year has inspired two Chinese women to set up a food business - Applestiz.
With an initial investment of 50,000 yuan, the women are replicating the crisp apple pastry and selling it to supermarkets.
Early sales of the product have been strong, and the two plan to open an outlet.
LOCAL
Pay rise
Tibetan companies are raising salaries in a bid to attract more qualified staff.
A local mining company recently offered 1 million yuan per annum for its new general manager - double the standard 500,000 yuan offered for the position by other Tibetan firms.
The Qinghai-Tibet railway has brought huge infrastructure improvement to the region since it opened in July 2006. This has seen growing local and overseas investment in the beverage, pharmaceutical, edible oil and energy industries.
But investors say it's difficult to find the right management and technical staff.
Pork deal
Chongqing municipal government and Chongqing Changjiang Nonggongshang Group have signed an agreement on the local pork industry.
By the end of 2010, the region is expected to raise 3 million pigs, and 6 million by 2012, under the deal. Chongqing Nonggongshang will reduce risks by lending money to farmers to help them build facilities and find customers.
Last year, Chongqing earned 16 billion yuan from pork sales, with more than 65 percent of that from animal husbandry.
Top service
Beijing's service industry accounts for more than 71 percent of the total by output value - equal to the average level of developing nations and 30 percent higher than the national average.
The service industry is expected to have generated an output value of 640 billion yuan in 2007, the Beijing Development and Reform Committee said.
Finance, information, retail, hi-tech, real estate and transport play a major role in the city's service industry.
(China Daily 01/09/2008 page15)
