Launch

ING to launch US$300 million property fund

Dutch financial services group ING plans to launch a US$300 million Chinese property fund in the first half of the year, the South China Morning Post reported. ING Real Estate, which has a global portfolio worth US$77 billion, is targeting the fund at insti-tutional investors that want real estate exposure without entering the market directly. Despite property prices slowing due to state-imposed cooling measures including higher down payments, the company believes the prospects for long-term growth are good. "We see China's strong economy and fast urbanisation will be translated into demand for real estate," said Robert Lie, Asia head of ING Real Estate Investment Management.

Degussa announces new performance silica JV

German specialty chemicals manufacturer Degussa AG announced that it signed an agreement with Fujian Nanping Xinyuan Investment (Wellink Group) to establish a joint venture in Nanping, Fujian province for manufacturing and marketing perfor-mance silica (precipitated silica and sili-cates). Upon final approval, the new ven-ture will begin trading as Degussa Wellink Silica (Nanping) Co, Ltd (DWS). Degussa will hold a 60 percent stake in the new joint venture and Xinyuan, a Wellink Group sub-sidiary, will hold a 40 percent stake. DWS has three production sites in China, provid-ing its performance silica to regional cus-tomers. The new company also has its own research center in Nanping, where it de-velops new products to meet specific cus-tomer requirements. Degussa anticipates further growth in the Chinese silicone rub-ber and toothpaste sectors, among others, and expects the new joint venture to fur-ther strengthen its position in the expand-ing market.

Novartis builds new China plant

Swiss pharmaceutical company Novar-tis began construction of a US$83 million drug production and development plant in Changshu, Jiangsu province, China Daily reported. The new plant, named Suzhou No-vartis Pharma Technology, is Novartis' sixth investment project in China and will develop and produce chemicals for drugs used to treat leukaemia, epilepsy, high blood pressure and other ailments. Operation is currently sched-uled for end-2007. "The centre further rein-forces the presence of Novartis in China," said Jeffrey Li, Novartis China president. With an ageing population and growing demand for healthcare, China is expected to become the world's No 2 or No 3 pharmaceutical market in the next five to 10 years.

DSM plans new process flavours plant in China

Dutch diversified manufacturing company DSM announced plans to invest US$12 million to build a new process flavours plant on its existing fully-owned nutrition production site in Shanghai. Construc-tion of the new facility will start immedi-ately and initial production is scheduled for late 2006, following a rigorous testing and analysis program. The plant, expected to become fully operational in April 2007, will double the company's production ca-pacity of process flavours used in culinary and savoury products. A new semi-continu-ous technology is to be used in the new facility to extend DSM's product range and increase quality consistency as well as food safety. "It serves two key strategic targets: growing our specialty portfolio in nutrition and expanding our presence in the emerg-ing Chinese market. The investment in a new facility provides an accelerated growth path into the Asian and Chinese process flavours market, from which our new and existing customers will benefit," said Feike Sijbesma, member of DSM's Managing Board.

Alcatel wins broadband expansion con-tract with China Telecom

Alcatel's flagship Chinese company Alca-tel Shanghai Bell announced that China Telecom has selected Alcatel Shanghai Bell to upgrade its existing broadband ac-cess network over 26 provinces in China to prepare for triple play service delivery. China Telecom will deploy the Alcatel 7302 Intelligent Services Access Manager (ISAM), which will enable the Chinese fixed telecommunication service provider to offer user-centric broadband services at triple the speed of conventional ADSL technology. China Telecom subscribers will have access to a series of high qual-ity broadband services such as high-speed Internet access, videoconference, IPTV and other multimedia services. "As user demand for high-speed Internet access services grows in China, service providers need to enhance and expand their broadband service offerings to better serve their customers," said Gerard Dega, President of Alcatel Shanghai Bell.

Nokia wins GSM/GPRS network expansion deal in Henan

Nokia announced that it has won a US$170 million GSM/GPRS network expansion deal with Henan Mobile Communications Corporation (Henan MCC). The expansion will significantly increase the network ca-pacity and coverage in Henan province. Under the agreement, Nokia is providing GSM/GPRS radio and core network equip-ment, including the Nokia MSC Server System, and an extensive range of services, including network planning, optimisa-tion and rollout services. Deliveries have started and the network expansion will be fully operational by the end of the first half of 2006. "This deal further strengthens our long-term and successful cooperation with Henan MCC," said James Lin, Vice President, Networks, Nokia China. "The expansion will enhance Henan MCC's market position and prepare their network for future evolution by introducing the cost-efficient Nokia MSC Server System in the Henan MCC's network."

Standard Chartered opens Beijing sub-branch

Standard Chartered Bank announced the opening of a sub-branch in Beijing. The new sub-branch provides a full range of consumer banking services, including foreign currency services to mainland Chinese citizens and yuan and foreign currency services to overseas nationals and permanent residents of Hong Kong, Macau and Taiwan. The bank has also es-tablished a priority-banking center, pro-viding wealth management services to clients.

ABN AMRO QFII quota upgraded

China's foreign exchange regular granted ABN AMRO an additional US$100 mil-lion under its qualified foreign institutional investor (QFII) program, China Daily re-ported. The extra quota will be used to es-tablish a China A-share fund, the regulator said. ABN AMRO Bank's investment quota under the QFII program was US$75 million by the end of 2005.

BP could take Sinopec stake

Approval has been given for a joint ven-ture between Sinopec and BP, which could lead to the British refiner taking a 25 percent stake in its Chinese counter-part worth US$14 billion, reported UK newspaper The Observer. A BP spokes-man claimed no knowledge of the deal although he did acknowledge that the company was keen to expand its China investments and was in negotiations with Beijing as to how this can be achieved. BP, the world's second-largest listed oil company, has a number of small joint ventures in China and it is claimed that an earlier bid for a stake in Sinopec, the listed arm of China Petroleum Chemical Corp, was turned down.