RBS and Lenovo Buy Into Suzhou Trust
The Royal Bank of Scotland and Lenovo's Legend Holdings have acquired a
combined 29.99 per cent stake in Suzhou Trust, state media reports. RBS
paid RMB117.9m for its 19.99 per cent share while Legend paid RMB59m
for its 10 per cent stake. Suzhou Trust, a mid-sized trust and
investment firm, will issue new shares to RBS in a private placement.
AIG Approved For Motorcycle Investment
U.S.-based insurance group AIG has been given a green light by the
Chinese Ministry of Commerce to acquire a 13.5 per cent stake in
motorcycle maker Lifan Group. AIG will pay USD90m to become the
second-largest shareholder in the Chinese company. Lifan said it will
use the investment to finance new projects and expand overseas. It is
also eyeing an IPO for USD1 bn in the mainland, Reuters reports.
CIC in Talks For HSBC Stake
British media reports that China's Investment Corporation is in talks
with Europe's largest bank HSBC for a minority stake. The Sunday
Telegraph reported that HSBC Chairman Stephen Green has met officials
of the CIC "several times in recent months". The Chinese sovereign fund
is reportedly interested in buying shares in the open market and to use
part of its USD200 bn fund to diversify its investments. CIC has bought
stakes in U.S.-based Blackstone Group and Morgan Stanley for USD8 bn.
Carlyle Drops Investment in Xugong Group
Private equity firm Carlyle Group has abandoned plans to buy a stake in
Xugong Group Construction Machinery. In 2005, Carlyle decided to buy 85
per cent of Xugong for USD375m, but has never received approval from
the Chinese government. It reduced its share to 45 per cent this year,
but its attempt has reportedly been "vetoed" by the Ministry of
Commerce as (controlling) stakes in key industries, well-known
trademarks or "old Chinese brands" cannot get clearance, Bloomberg
reports. As reported earlier, Carlyle invested USD87m in Shanghai's chemical company Sinorgchem Group in early July.
Volkswagen Posts Record Sale
For the first time, Germany's Volkswagen has sold more than half a
million vehicles in China during a six-month period, AFP reports. Sales
jumped 23.6 per cent to 531,600 units in the first six months of this
year. China sales are now only slightly lower than its sales in
Germany, where Volkswagen sold 534,000 vehicles in the same period.
Global sales also increased to a record high of 3.27 million.
Herbalife Receives More Licenses For Direct-Selling in China
Nutrition supplement specialist Herbalife has received five more
licenses for direct-selling in Beijing, Guangdong, Shandong, Zhejiang
and Huizhou, the company said in a statement. The California-based firm
has already gained the right to do business in Jiangsu province, and
has plans to open a store in Shanghai. Currently, Herbalife runs 91
stores in China.
McDonald's Opens 20 Restaurants in Chongqing
U.S. fast food chain McDonald's said it plans to add 20 restaurants in
Chongqing, media quotes Lin Wenke, Vice President of McDonald's China.
The company will invest RMB100m over the next three years to meet the
growing demand in the fast-growing western city municipality. The chain
celebrates its 18th anniversary in China this year and currently
operates 900 restaurants across China. There are only 40 McDonald's
restaurants in Chongqing and the surrounding Sichuan province.
Allgreen Properties Invests RMB1.83 bn in Hebei
Singaporean property developer Allgreen Properties will invest RMB1.83
bn in a hotel and residential development in Tangshin, Hebei province.
The investment secures Allgreen a 25 per cent share in the RMB7.3 bn
project, which is a financed by Kerry Properties, Shangri-La Asia Ltd
and Kuok Brothers. State media reports that the Singaporean company
will fund its share in part by debt.
News & Interviews 
(0 vote)
