Biz scene

MARKET

Debt agreement

China Minsheng Banking Corp and China National Building Material Group Corp signed a strategic debt agreement under which the bank would provide 9 billion yuan in loans to the group over the next three years.

This is by volume the bank's largest-ever debt grant. The funds will mainly be used for the group's corporate reshuffling, expansion, and export and import business.

GRAPEVINE

Acquisition deal

Dongfeng Motor Corp and Hafei Automobile Group are in the final rounds of discussions on an acquisition deal expected to be announced over the weekend, Shanghai Securities reported, citing an unnamed source.

It said Dongfeng's business partner French Citroen would join the deal, and the three firms would establish a manufacturing base in Shenzhen, where Hafei has a factory, to manufacture Citroen cars.

BIZ UNUSUAL

Toy rental

Consumers who can't cough up the cash to buy the toys they want can now lease them from a new type of business.

These shops allow customers to rent toys for a week at 5 to 10 percent of the retail price.

It's an attractive business for many entrepreneurs, as it requires only 30,000 to 60,000 yuan of startup capital and is low risk. Owners' main responsibility is ensuring the toys are safe and clean.

LOCAL

Financing solution

The Sichuan provincial government plans to establish Sichuan Development (Holding) Co Ltd with a registered capital of 100 billion yuan to resolve local companies' financing problems.

The proposal has been sent to the provincial State-owned assets supervision and administration commission for approval.

Infrastructure thrust

Heilongjiang province will improve the road infrastructure in its six eastern cities of Mudanjiang, Jiamusi, Jixi, Qitaihe, Shuangyashan and Hegang during the 2008-12 period by investing about 17 billion yuan.

The move aims to promote economic development in the province. By the end of 2007, the province had built up expressways covering more than 1,000 km.

(China Daily 04/18/2008 page15)