China Post, Horizon plan retail chain in rural areas

Plans by China Post and US-based China Horizon Investments Group to open 500 directly operated retail stores in rural China have raised doubts over the risks of high logistic costs and insufficient purchasing power in rural communities.

The two companies agreed to the venture last June.

It aims to create a chain of Post Mart retail stores. Under the deal, China Horizon will invest 1 billion yuan ($162 million) in a 25-year lease of 10,000 China Post retail stores.