Li & Fung says to buy US Wear Me apparel business

Hong Kong-based consumer goods exporter Li & Fung said yesterday it will pay up to $402 million to buy a US young men's and children's apparel business, as part of its effort to expand overseas. Li & Fung's purchase of US-based Wear Me Group will also benefit the company's brands and private label businesses, it said in a statement.

The company, whose customers include US retail giants Wal-Mart and Target, is relying on acquisitions and new outsourcing deals to meet expansion targets. The company, whose president is former American competitive tennis player Bruce Rockowitz, has set a three-year plan from 2008-2010 with targets including annual turnover of $20 billion, and a core operating profit of $1 billion. Turnover in the first half of 2009 totaled HK$46.3 billion ($6 billion).

Li & Fung has completed three small roll-up acquisitions in China and the UK so far this year. "We will continue to pursue our acquisition strategy - and this deal is only one of the many opportunities that we are currently looking at," Rockowitz, also executive director, said in the statement.

HK dollar little changed, stuck in a tight range

The Hong Kong dollar moved in a narrow range against the U.S. dollar yesterday, while interbank rates were steady to a touch firmer from the previous session. The local currency was quoted at 7.7502, just a whisker below its upper limit at 7.7500 to the US dollar. Dealers expect the Hong Kong dollar to stay near the upper trading band, with investors still eyeing Asian markets in the hope of a quick recovery. Hong Kong has been drawing fund inflows amid signs that China's economy is rebounding, which will help other Asian economies recover.

Hong Kong stocks rise on oil price rally

Hong Kong stocks rose, led by energy stocks, on higher crude oil prices and as China said economic growth exceeded 7 percent in the first nine months.

Cnooc Ltd, China's biggest offshore oil producer, advanced 4.2 percent. Foxconn International Holdings Ltd, the world's largest contract maker of mobile phones, surged 9 percent after its major shareholder said it is building a $1 billion factory in China. China Life Insurance Co, the world's biggest life insurer, gained 1.8 percent as insurance premiums collected by Chinese insurers increased 8.1 percent in the first nine months of this year.

The Hang Seng Index gained 1.2 percent to 22,200.46, its highest closing level since August 4, 2008. The Hang Seng China Enterprises Index, which tracks so-called H-shares of Chinese companies, rose 1.5 percent to 12,947.73.

China Daily/Agencies

(HK Edition 10/20/2009 page4)