China's leading liquor producers are the latest to raise prices as raw material costs go up and demand outweighs supply as the Spring Festival draws near.

Kweichou Moutai Co Ltd (Moutai) recently raised its prices by an average of 20 percent. Wuliangye Group Co Ltd, another major liquor maker in Yibin, Sichuan province, also said it would increase prices.

Since early 2007, Moutai products have gone up in price eight times.

Mexico plant

Geely Holding Group Co, China's largest privately owned automaker, plans to build a plant in Mexico and make US-specific models to enter the world's biggest auto market.

The company and its partners will initially invest $500 million in the new factory. The factory will have an initial capacity of 50,000 units and eventually may expand to 300,000.

It currently has factories in Russia, Ukraine and Indonesia, assembling vehicles from component kits.

The Mexico factory will be Geely's most expensive overseas facility and its first assembly plant outside China with full manufacturing capacity.

BIZ UNUSUAL

City helpers

Short-term assistants are making life easier for foreign investors visiting Nanjing, capital of Jiangsu province, on business.

Locals fluent in English who can help foreign businesspeople to get around the city are in demand.

Paid by the hour or the day, assistants usually earn between 6,000 and 10,000 yuan a month.

More mandarins

Mandarin growers in Qingshen, a county in the city of Leshan, Sichuan province, are extending their harvest period by covering fruit with plastic film and using fertilizer about six months before it's ripe.

The harvest usually runs from mid-November to mid-December, but farmers in the nation's largest mandarin-growing region are extending the season to March using this method.

The mandarins are still fresh but taste sweeter and can fetch a higher price. Growers using this method can get an extra 7.5 to 9 yuan per square meter.

Bold ad

A small restaurant in Jilin province is causing a stir with its unusual billboard.

The left side of the billboard - on a wall outside the Sunshine International Restaurant - features actor Fan Wei with the caption: "The world's cheapest food".

But on the right, Fan Wei is pictured chatting with Osama bin Laden on QQ instant messaging.

Local authorities have ordered the restaurant to remove the billboard, as the images are being used without permission.

BIZ MOVES

Asian Union hire

Asian Union New Media (Group) Ltd (Asian Union), the leading media content provider in China, said it appointed Tian Suning (above) as chairman of its board of directors.

Tian was chairman of Broadband Capital Partners' board of directors. He was also chief executive of China Netcom after joining the company in May 2005.

Zhang Changsheng was appointed vice-chairman of Asian Union's board of directors. Zhang is senior vice-president of China Netcom.

Chairman quits

The chairman of State-owned Bailian Group Co, China's biggest retailer and a local partner of France' Carrefour SA, has stepped down and the government will appoint a senior official to replace him, Reuters reported yesterday.

The report, citing unnamed sources, said that Ma Xinsheng, deputy head in charge of the city's State-owned assets, will be appointed to replace Xue Quanrong as chairman.

There would also be a management reshuffle at several subsidiaries of Bailian Group.

GRAPEVINE

Banks apply

Bank of Communications and Bank of Beijing have applied to invest in China's insurance industry, reported the China Securities Journal, without disclosing the source.

China Construction Bank is considering following suit, but has not submitted an application, the report said.

Last September, the China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC) submitted a proposal to allow Chinese commercial banks to invest in insurers, which experts said was good news for banks.

The State Council recently approved the proposal and the CBRC and CIRC are working on the details.

Shares suspended

Wuxi Little Swan Co Ltd (Little Swan), China's second largest washing machine producer, is expected to partner with China's leading appliance makers Changhong and Midea, China Business News reported.

Little Swan yesterday said the company's shares would be locked down for five days until Friday.

The report said the Jiangsu-based washing machine maker is seeking a corporate reshuffle, and would probably team up with Changhong or Midea. The two companies declined to comment.

Changhong and Midea have been aggressively expanding into the white goods segment including refrigerators and washing machines through mergers and acquisitions.

Wage rise?

China Petroleum and Chemical Corp (Sinopec) is considering raising salaries, five years after its last personnel initiative, China News reported, citing an unnamed Sinopec source.

The wage rise would apply to high-end technicians and low-income staff, but not management. It would range from 240 to 1,000 yuan, with an average increase of 320 yuan.

IPO relaunch

China's Vtion Wireless Technology, which is relauching its initial public offering of shares in Frankfurt, plans to raise up to 55.2 million euros, Reuters reported yesterday.

Vtion, which provides wireless data card solutions for mobile computing, is offering 4.6 million shares, with a price range of 8-12 euro apiece.

The firm postponed its IPO in Frankfurt in November.

BOC International, CLSA and Sal Oppenheim are the joint bookrunners.

LOCAL

Appliance subsidy

Shandong province is the first to bring in a subsidy to boost appliance purchases by the region's rural residents.

The central government launched the trial program in December in three provinces - Shandong, Henan and Sichuan.

Rural residents can claim back 13 percent of products from three categories - fridges, TVs and mobile phones. But families cannot claim more than two products from one category.

Shandong has set aside 171 million yuan for the scheme, with sales networks in 140 counties across the province.

Power cut

Guangdong province is considering cutting electricity prices after complaints of sky-high power bills.

Last year, China Southern Power Grid, which provides power to the province, made a profit of 14.2 billion yuan, accounting for 17.8 percent of its assets, raising concern it holds a monopoly in the province.

The price-cut proposal has been submitted to local government. If approved, consumers in the province could save around 5 billion yuan a year on electricity bills.

Port turnover

Thanks to the rapid growth of foreign trade, Tianjin Port, the largest in North China, handled 309 million tons of cargo in 2007, up 20.2 percent year-on-year.

Turnover of 20-foot equivalent unit (TEU) containers also increased by 19.4 percent to 7.103 million in 2007.

Yu Rumin, president of the Tianjin Port (Group) Co Ltd, attributed the rapid growth to the development of the Binhai New Area.

(China Daily 01/15/2008 page15)