Gome's Q4 disappoints

Top Chinese electronics chain Gome Electrical Appliances Holding Ltd lagged forecasts with a 45 percent rise in quarterly earnings despite strong sales and improved margins, but said yesterday it plans to expand its store network by almost one-quarter this year.

Gome, which operates 526 outlets across Asia's second-largest retail market, hopes to set up 120 more and to buy more telecommunications retail chains like the 23 CellStar outlets - which sell cellphones - that it bought in 2007.

The company, which has increased its market share by buying out smaller rivals, aims to control one-fifth of the mainland market for electrical appliances and electronics by 2011, it said in a statement yesterday.

10b-yuan mid-term bonds

Aluminum Corp of China Ltd plans to to issue between 3 billion yuan and 10 billion yuan worth of medium-term bonds to bankroll capital investment projects, as the country's largest aluminium producer expands its capacity.

Known as Chalco, the firm said yesterday it plans to sell the bonds with a maturity of between three and five years.

Post-accident maintenance

Maoming refinery, Sinopec's second largest refining factory, may have to move up the planned maintenance of a 100,000-barrels-per-day (bpd) crude-oil unit by several days, a source familiar with the plant said yesterday.

As a result, crude runs in April could fall some 50,000 tons from the forecasted 1.09 million tons, the source said.

A one-million-ton-per-year hydrocracker at the plant was damaged and closed following an explosion that was likely caused by a pipeline leak from a heating furnace, he said.

HK dollar higher

The Hong Kong dollar edged higher against the US dollar yesterday after moving in a narrow range, with some players unwinding carry trade positions.

The local currency was trading at 7.7922/23 per dollar at 0943 GMT, up 0.02 percent from late Wednesday trade in Asia.

"There was some profit taking after so-called weekend carry trades. People who bought the US dollar on Wednesday are seen selling today," one dealer said.

Another dealer at a European bank said the market was in a consolidation mood after the USD/HKD spot rate met resistance at 7.7955 on Wednesday.

The Hong Kong currency is pegged at 7.8 to the US dollar but can trade between 7.75 and 7.85.

Reuters

(HK Edition 04/18/2008 page2)