Economy & Market
China's Sinoma launches 500 m yuan finance JV
The world's largest cement equipment maker, China National Materials Co Ltd (Sinoma), together with its state-owned parent, is setting up a financing vehicle that will enable it to provide deposit-taking and loan services to other group companies. Sinoma said late on Tuesday it had agreed to establish Sinoma Finance, with a registered capital of 500 million yuan ($78 million), which will be 30 percent owned by the listed company and 70 percent by the parent. "The use of Sinoma Finance as a vehicle would allow for more efficient deployment of funds between members of the group," Sinoma said in a statement to the Hong Kong stock exchange. It added that benefits would also include greater utilisation of available funds to repay external commercial loans. In August Sinoma said it was in talks in Europe and the United States for acquisitions of 1 billion to 10 billion yuan ($154 million to $1.5 billion) each after it posted a 71 percent rise in first-half earnings. Sinoma has been enjoying booming sales amid China's construction boom, resulting in hefty cash inflows that are helping it build a war chest for overseas acquisitions.