Domestic air-conditioner giant Gree Electrical Appliances Inc (share code: 0651 Shenzhen) slashed its prices as much as 1,000 yuan (US$120) per unit in a nationwide promotion campaign.

The company, based in Zhuhai, Guangdong Province, will first execute a price cut in Shenzhen in an attempt that is set to trigger more around the country.

Rivals Chunlan, Kelon and Mitsubishi have already handed out lucrative marketing strategies including services guarantees, free products and cash tickets.

Yutong, MAN JV talks under way

Zhengzhou Yutong Coach Manufacturing Co Ltd (600066 Shanghai), China's second largest bus maker, are in talks with MAN AG, Germany's second largest truck maker, to establish a 300-million (US$36 million) joint venture.

Negotiations for a 50-50 venture are underway and the companies expect to receive approval from the Chinese Government at the end of this year, said Wang Lutao, an official at Yutong.

Rival DaimlerChrysler AG has a US$96-million bus venture in East China's Jiangsu Province, while Sweden's Volvo AB owns a US$97-million bus plant in Shanghai.

Sinopec to sell 3 billion A shares

Chinese oil giant Sinopec Corp (0386 Hong Kong) plans to raise 10 billion yuan (US$1.2 billion) by selling up to 3 billion A shares to domestic investors in July, company officials said last Wednesday.

Listing proceeds will be used to fund the acquisition of the Sinopec Star Petroleum Corp from Sinopec's parent China Petrochemical Corp and for investment in two pipeline projects.

Shares will be listed on the Shanghai Stock Exchange.

The Sinopec issue could become China's largest domestic initial public offering (IPO) ever, surpassing the giant Baosteel.

Urban Construction sets investment plan

The director's board of Beijing Urban Construction (600266 Shanghai) recently passed an investment plan to co-establish Guosen Investment Co Ltd with Shenzhen International Trust Investment Company, Yunnan Hongta Industrial Co Ltd, Shenzhen Airport Shareholding Co Ltd and China FAW Group.

The registrated capital of the new company will be 200 million yuan (US$24.2 million), and Beijing Urban Construction will inject 20 per cent of the total investment into the new company.