Pacific Asia China Energy Inc (PACE) has announced it has reached an agreement with China United Coalbed Methane Company (CUCBM) to terminate the Huangshi CBM project located in Hubei province.

PACE will pay CUCBM $100,000 plus the outstanding accounts payable in return for waiving the remaining minimum exploration work commitment as specified by the terms of the Huangshi production sharing contract.

New fund

Leading Shanghai-based fund firm Fortis Haitong Investment Management Co Ltd yesterday announced a new QDII fund product, expecting a sluggish domestic stock market will help investors cast their eyes overseas.

The fund, to be sold from May 19 through 11 major banks, will mainly invest in Chinese companies listed in Hong Kong and the United States.

StanChart goal

Standard Chartered Plc, the UK bank that makes most of its profits in Asia, aims to increase its number of outlets in China by 60 percent this year, said CEO Peter Sands.

The London-based bank hopes to have 60 branches and sub-branches in China by the end of 2008, from 38 in last year. Standard Chartered invested $6 million in its China consumer banking unit last year.

Capacity expansion

Toyota Motor Corp plans to invest 1.5 billion yuan to boost production capacity at a facility in North China by 50 percent to 150,000 vehicles a year.

The expansion at the plant in Tianjin municipality is due to be completed by the end of 2009, the company said in a statement.

Financial results

China Fire Security Group Inc, a leading industrial fire protection products and solutions provider in China, announced its financial results for the quarter ended March 31, 2008. The company reported a record quarterly revenue of $14.7 million, up 54.7 percent year-on-year, compared with $9.5 million in the first quarter of 2007.

Cement gains

Anhui Conch Cement Co, China's biggest cement producer, rose 6.7 percent to HK$66.70 yuan yesterday on expectations that reconstruction after the Sichuan earthquake will boost demand for its products. Its Shanghai-listed stock rose 5.1 percent. Huaxin Cement Co, controlled by Holcim Ltd, the world's second biggest cement maker, gained 10 percent to 25.56 yuan in Shanghai trading.

Pharma deal

Unigene Laboratories Inc announced it has reached a deal with a wholly owned subsidiary of China Pharmaceutical Group Ltd, a limited liability company listed on the main board of the Hong Kong stock exchange, to enter into a private placement with gross proceeds to Unigene of over $2 million. The purchaser is to receive 1.08 million shares of Unigene common stock in exchange for $1.86 per share, an 11 percent premium on the closing stock price on April 28, 2008, the date on which the parties agreed to the purchase price.

Agencies-China Daily

(China Daily 05/14/2008 page14)