China Construction Bank eyes $1.5b in funds

China Construction Bank plans to raise over $1.5 billion in private equity and investment funds to invest in sectors from health care and consumption to aviation, the head of its investment arm said yesterday. Hu Zhanghong, chief executive of CCB International, told reporters that his firm planned to raise a 5-billion-yuan health care investment fund, China's first.

CCB International will manage the fund jointly with a US firm that Hu did not identify. The fund, which starts raising money from Dec 18, will focus on investing in companies producing medicine and medical equipment and providing medical services, targeting returns of over 20 percent annually.

PC maker Lenovo in talks on possible deal

Lenovo Group, the world's No 4 personal computer maker, confirmed yesterday it is in preliminary talks on a possible investment or acquisition, a day after its stock soared on speculation of a deal.

Like its global rivals, Lenovo is facing sputtering demand for its computers as the world economy slows and consumers and companies cut back on tech spending.

Acer upbeat on Q4, sales up 15 pct in Nov

PC maker Acer, which has not publicly disclosed any profit forecasts in the past, said it may beat its initial fourth-quarter estimates after reporting a 15 percent rise in November sales versus a year ago.

A company spokeswoman declined to give any further details. Analysts expect the Taiwan company to post fourth-quarter net profit of NT$3.4 billion, according to the average of 11 analysts polled by Reuters Research.

Dongfeng, Nissan JV exec see challenging goal

A venture between China's Dongfeng and Japan's Nissan Motor faces a tough challenge to hit a 2009 sales goal that is nearly three times the China market's overall projected growth rate, an executive said yesterday.

Toshiaki Otani, a vice president of the joint venture, Dongfeng Motor Co Ltd (DFL), told reporters he personally targeted passenger vehicle growth of 14.5 percent in 2009, which he said would be "very challenging" to achieve.

HK dollar stays strong, HKMA intervenes

The Hong Kong dollar continued to trade at the top of its trading band yesterday, forcing the Hong Kong Monetary Authority (HKMA) to step in for the second time within 24 hours to curb its appreciation, amid fund inflows and unwinding of carry trades.

The local currency traded at 7.7502/03 against the US dollar in late afternoon.

Reuters

(HK Edition 12/12/2008 page2)