CRE to invest 3 bln hkd in China logistics/distribution business in 3 yrs

HONG KONG (AFX-ASIA) - China Resources Enterprise chairman Ning Gaoning said the company will invest 3 bln hkd in logistics and distribution businesses in China in the next three years.

	    Cited by the South China Morning Post, Ning said his company's next step is to expand into China.

	    Ning said CRE will need to "spend a lot" to set up the logistics and distribution businesses on the mainland and the expansion will be financed both with mainland bank loans and from internal reserves.

	    "The expansion will improve our return-on-equity ratio," Ning said.

	    Ning made the comments as CRE signed an agreement to acquire an 80 pct stake in a brewery in Dalian, the report said.

	    The company will settle the payment with 100 mln hkd in cash and take over about 200 mln yuan worth of liabilities of the brewery, the report said.

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