China Minmetals Corporation (CMC) late last month signed an agreement with the government of Central China's Hunan Province to co-operate in metal resource development.

CMC is China's largest multinational group involved in exploration, refining, production, and circulation of base metals and raw materials. In the next five years, Beijing-based CMC will invest at least 10 billion yuan (US$1.25 billion) in the province, to help it reorganize its state-owned mining companies including Ershisanye Construction Group Co.

Expressway investment

Ping An Insurance (Group) Co, the nation's second largest life insurer, has agreed to buy stakes in three expressways in North China's Shanxi Province.

It is the company's first infrastructure investment of its 10 billion yuan (US$1.25 billion) plan. The investment will go to the Taiyuan-Changzhi, Changzhi-Jincheng and Jincheng-Jiaozuo expressways. The Shenzhen-based insurer still hopes to have more cooperation with relevant government departments and enterprises for infrastructure investment and financing.

Refinance plan

Hong Kong tycoon Li Ka-shing's Hutchison Whampoa Ltd will refinance a 9 billion Hong Kong dollar (US$1.16 billion) loan it borrowed in 2003 to cut interest costs.

The Hong Kong-based company joins other Asian firms in reducing borrowing costs by refinancing. About US$36.4 million in loans in the Asia Pacific region were for refinancing in the first half of this year, up 32 per cent from the US$27.6 million in the same period last year.

Joint venture

Tianjin Port Development Holdings Ltd, the operator of the Chinese mainland's fifth-largest port, last week announced a 3.6 billion yuan (US$451 million) container terminal joint venture.

The port will join forces with leading international container conglomerate COSCO Pacific Ltd and the world's biggest shipping line, Copenhagen-based AP Moeller-Maersk, in the venture with a registered capital of 1.26 billion (US$57.5 million). Tianjin Port will own 40 per cent of the venture and the other two parties hold 30 per cent respectively.

Stake buy

China Central Television (CCTV) is considering buying a major stake in Hong Kong broadcaster TVB, one of the leading content providers in Chinese-language entertainment.

CCTV may buy a 32.49 per cent stake in Hong Kong-traded Television Broadcasts Ltd, worth 6.4 billion Hong Kong dollars (US$823 million). The deal is hoped to create the first tie-up between mainland and Hong Kong television broadcasters.

Expansion plan

Global banking giant HSBC Holdings PLC says it is to put more investment into business expansion, especially commercial and personal banking services in the Chinese mainland, by depending on its existing 33 branches in China.

The company also expected to promote its retail banking business by co-operating with the Bank of Communications. Within the framework of existing policies, the group is seeking to launch more co-operative projects in China, including finding partners in both the security and insurance sectors.

Restructuring plan

Two major iron and steel producers in East China's Shandong Province will be regrouped to form the country's second largest iron and steel group.

The two producers, Jinan Iron and Steel Group and Laiwu Steel Group, rank sixth and seventh in the nation in terms of steel production. Their combined output last year totalled 20.76 million tons, about 2 million tons less than the output of Baosteel Group, China's largest steel producer in Shanghai. The restructuring of the iron and steel companies will be finished by the end of October. It is hoped the merger will enhance the competitiveness of China's iron and steel industry.

Handset co-operation

Motorola Inc recently co-operated with Shanda Interactive Entertainment Ltd, a top Chinese game operator, to launch its first online-game-playing mobile phone. It picked China for the initiative in a bid to tap into one of the world's top game markets.

The world's second-biggest cellphone maker rolled out its E680G, a modified version of an existing gaming handset adapted to play online titles from Shanda. The agreement between Motorola and Shanda covers mobile versions of Shanda's World of Legend and Magical Land online role-playing adventure games.

(China Daily 08/07/2006 page3)