Biz Scene

MARKET

Coach contract

Ankai Automobile Co Ltd (Ankai), the Shenzhen-listed company producing large and medium-sized coaches, won an overseas contract worth 549 million yuan from Iran-based ARG-Diesel.

Under the contract, which runs till October, the Anhui-based coach provider will produce 600 coaches and parts for ARG-Diesel.

ARG-Diesel is a joint venture between Kerman Automobile Manufacturing Group, a leading automobile group in Iran, and Vertoon Automotive Company, with a registered investment of 100 million rial (884,000 yuan).

Sales up

Southwest Pharmaceutical Co Ltd, a leading pharmaceutical company in China's southwestern region, said the Chongqing-based firm saw more sales and profit last year, thanks to China's medical system reforms and improving corporate management and shareholding system.

The company's profit rose 86 percent from January to September 2007. It is expected to register annual sales growth of over 20 percent in the future.

Stake approval

Holcim Ltd, the world's second-biggest cement maker, won regulatory approval to buy 160 million shares in China's Huaxin Cement Co, raising its stake in the company as the country's construction boom boosts demand for building materials.

Holcim received the approval from the China Securities Regulatory Commission, Huaxin said in a statement to the Shanghai Stock Exchange yesterday, without saying how much the Swiss company would pay. The shares are valued at 6 billion yuan based on Huaxin's January 8 closing price of 37.79 yuan.

Holcim currently owns 26.1 percent of Huaxin and is the largest shareholder of the Huangshi, central China-based company.

The additional share purchase will raise its stake to about 50 percent.

GRAPEVINE

Bank listing

China Everbright Bank (CEB) is preparing for an initial public offering in Shanghai, reported China Business News, citing an unnamed source.

The IPO is expected to be concluded in the first half of this year. CEB thus has a limited time for introducing any strategic investor before the debut.

Last November, Central Huijin Investment Co injected 20 billion yuan into CEB, becoming the largest single investor in CEB, holding a 70.9 percent stake.

BIZ MOVES

Orient Home president

Li Fengjiang, former president of Wumart Group, a leading retail chain in China, has joined Orient Home, a home improvement chain, as its president, said an Orient Home source.

Li, who started working for Wumart in June 2005, quit in October. He had also been the vice-president and senior vice-president of the Beijing-based chain.

Before joining Wumart, Li worked in Germany-based OBI, an international home improvement chain.

CBRC vice-chairman

The China Banking Regulatory Commission (CBRC) has appointed Wang Zhaoxing as vice-chairman.

Wang joined the CBRC in July 2003. From June 2005 to December 2007, he was the assistant to the chairman, overseeing the successful local incorporation of foreign banks.

BIZ UNUSUAL

Pricey buns

The government recently issued regulations on buns, specifying their standard shape, flour and water content. The standardized buns are now being sold in supermarkets and stores around Henan province, but the producers have raised the price for no apparent reason.

School market

An evening market has been set up in Zhejiang Sci-Tech University (ZSTU) in Zhejiang province.

The market brings together students from ZSTU and neighboring colleges and universities, who can sell and buy small gadgets such as DIYs and second-hand products. It usually opens around 5 pm and picks up around 7 pm.

The idea of the market was born when a few months ago some students went to the area to sell their wares, which attracted many visitors and sellers. It was then that the administrative staff of the ZSTU decided on an evening market. Most sellers, being students, see the market as a great place to make friends, apart from making some fast bucks.

Haggling union

Tired of bargaining? Join the haggling union!

China's first haggling union was formed in November in Taizhou, Jiangsu province. The union helps local residents buy electrical appliances cheaper by haggling for them. Thirty percent of the money saved in the process goes to the union as commission.

The union has three members, all local residents with at least 10 years of sales experience in the household appliance industry. They came up with the idea when they found the retail price of appliances in Taizhou was always higher than that in Shanghai and Nanjing, capital of Jiangsu.

LOCAL

Loan for students

The Wuhan government in Hubei province has promised to extend credit to university and technical school students who fail to find a job within three years of their graduation, to encourage them to start their own businesses.

One student can obtain credit up to 50,000 yuan while a couple of students, if they apply together, can ask for a bank loan of up to 150,000 yuan. They will be required to pay back the loan within two years.

Shanghai survey

A new survey by the Applied Statistics Research Center under Shanghai University of Finance and Economics shows 69.7 percent of interviewees do not believe now is the best time to buy a house, while 16.9 percent will wait and see.

The survey was conducted among 1,000 Shanghai residents aged 20 to 69, excluding foreigners and students.

The survey found a big gap still exists between property prices and individual income, and that consumers are confident macro-adjustment policies will bring down home prices, said the center.

Fixed-asset investment

Fixed-asset investment will be a big driver for Beijing's economy and the capital will keep its growth at a sustainable level this year, said Wang Haiping, spokesman for the Beijing Development and Reform Committee.

It is estimated fixed-asset investment this year will grow by more than 11 percent year-on-year, crossing 430 billion yuan. Last year, the figures were 15 percent and 388 billion yuan.

The investment will be used to improve infrastructure in and around the city.

(China Daily 01/10/2008 page15)