Biz Scene

MARKET

Profit forecast

China Minsheng Banking Corp said net income last year probably rose more than 60 percent on higher interest income. The company's net income was 3.8 billion yuan in 2006.

Another lender, Bank of Nanjing Corp, partly owned by BNP Paribas SA, said net income rose about 50 percent last year on increased demand for loans. Its net income was 594 million yuan in 2006.

IPO scrapped

Changsheng China Property Co, the Chinese property developer partly owned by Goldman Sachs Group Inc, dropped its planned Hong Kong initial public offering, citing turmoil on capital markets and adverse market conditions.

The company, which also cited the "dismal trading performance of some of the recent" IPOs in Hong Kong, announced the decision in a filing to the stock exchange yesterday.

Changsheng had planned to raise as much as HK$1.13 billion in an IPO by selling 250 million shares, a 25 percent stake, at HK$3.32 to HK$4.51 each.

Japan unit

Baidu.com Inc, operator of China's most-used Internet search site, has set up a unit in Japan and began its first local-language service outside China.

The company is expanding in Japan to tap growth in the world's second biggest economy, Chief Executive Officer Robin Li said at a briefing in Tokyo. Baidu will focus on search engines for mobile phones and is in talks with Japanese businesses in the industry, he said, without naming the companies.

Takeover nod

Sinolink Securities Co won approval from the China Securities Regulatory Commission to take over a listed company to become a publicly traded brokerage.

The Chengdu-based securities firm will buy the public listing of Chengdu Urban Construction Investment & Development Co, the construction company said in a statement to the Shanghai Stock Exchange yesterday.

Chengdu Urban will sell 216.1 million shares worth 1.8 billion yuan to Sinolink's shareholders. Sinolink will become a listed company after the transaction.

BIZ UNUSUAL

Self-heating meals

A new self-heating convenience food product has hit the local market, which offers a meal in eight minutes.

Zhong Wei Food Palace is behind the new products, which come in flavors like stewed beef, curried chicken and double-fried pork. The box set heats itself when the user pulls a strip.

Asparagus tea

Asparagus tea is selling well in Huangbei, Hubei province. The tea sells for 3,000 yuan per kg, while fresh asparagus spears are sold at 12 yuan per kg.

Asparagus tea is said to have high nutritional value and is being bought as a gift for Spring Festival. Companies from cities like Beijing and Shijiazhuang have ordered over 700 kg of asparagus tea from Huangbei.

The tea commands a high price because of the cost of raw materials - 100g of fresh asparagus produces about 1 kg of tea.

LOCAL

Hydro power boost

By the end of November, 45 companies were in the queue to build 86 hydropower stations along the Nujiang River, proposing an installed capacity of 1.35 megawatts with a total investment of 6 billion yuan.

Nujiang, in Yunnan province, has 89.41 billion cu m of water resources, with a theoretical reserve of 20 million kilowatts, accounting for 18.7 percent of the province's electricity production.

Food safety system

A management system tracing poultry and animal products will begin in Beijing next month. The production and transport of animal-origin foods will be strictly supervised and controlled under the system.

An official said the system would ensure food safety, as 80 percent of poultry and animal products in Beijing come from other ports.

GRAPEVINE

Prudential stake

Ping An Insurance (Group) Co may spend 100 billion yuan to buy a stake in Prudential Plc, the UK's second biggest insurer, the 21st Century Business Herald cited a source as saying.

Shenzhen-based Ping An will make the investment using proceeds from its planned share sale, the newspaper reported.

Ping An announced on Jan 18 a plan to issue as many as 1.2 billion new shares in Shanghai, which still requires approval from its shareholders and from the securities regulator.

BIZ MOVES

Media appointment

Liu Haijun was recently promoted to chief development officer of Vision China Media (VCM).

Liu joined VCM in 2005 and was appointed vice-president in July 2006. Liu has made important contributions to the rapid development of VCM.

Li Limin, board chairman and CEO of VCM, was impressed by Liu's effective administration and rich experience. He expects Liu to speed up network construction for the coming Beijing Olympic Games.

Senior VP quits

Lu Weimin (left), senior vice-president and chairman of Best Buy China, has resigned due to personal reasons, the retailer announced on Tuesday.

Best Buy's investment and development strategy will not change after Lu leaves, said Zeng Yaozu, Best Buy's marketing director. The company will release details of its second store in China next week.

(China Daily 01/24/2008 page15)