Shanghai Belling Company, one of China's leading integrated circuit (IC) enterprises, will transfer its 11.22 per cent stakes in Hua Hong NEC Electronics Co Ltd to Hong Kong Hylintek Limited, Belling's exclusively-invested subsidiary.

According to a statement released by Belling yesterday, the total registration capital of Hua Hong NEC is US$894.04 million, while Belling holds 11.22 per cent of shares valued at US$100.3 million, reported China Daily.

The stake transfer is in accordance with the company's developing strategy in the coming years - further exploring the overseas market, it stated.

After the transfer agreement is approved by the relevant government departments, Hylintek Limited will join with other shareholders of Hua Hong NEC to set up a new overseas company.

To date, Shanghai Hua Hong Group - a large domestic semiconductor enterprise - and Japan-based NEC are taking 55.92 per cent and 17.36 per cent stakes, or US$500 million and US$155.2 million, of the Hua Hong NEC, a Sino-Japan joint venture engaged in semiconductor foundry.

Zhang Bing, a leading analyst in the information technology industry of CITIC, said that China's IC sector boasted unique advantages on the international market in terms of technologies and talent.

"Business expansion to the overseas market will help Belling enhance its products added value and win the competition," said Zhang.

Founded in September 1988, Belling has become a leading IC company in China.

It adopted a development model characterized by high investment, profits and returns, facilitating the rapid expansion of the Belling Group.

On September 24, 1998, Shanghai Belling was the first publicly listed company in the micro-electronic industry in China and ranked among the top 50 IC companies in China.

(China Daily)