First solely foreign funded retailer approved

AEON Hong Kong has got approval from the Ministry of Commerce to set up the first solely foreign funded retailer in the mainland market.

AEON, a listed company from Hong Kong, declared on September 11 that it would locate its solely owned AEON China in Shenzhen, Guangdong Province. The registered capital of the company is 50 million yuan.

Japan AEON, the holding company of AEON Hong Kong, is the largest retailer in Asia. According to China's WTO commitment, the country's retailing sector will not be fully open to foreign investors until December 11 this year. But CEPA has made it possible for AEON Hong Kong to get a head start.

AEON China serves as the headquarter and sourcing center in the Chinese mainland for AEON Japan.

Some 30 of the world's leading retailers have made presence in China. And their expansion in the country is still speeding up.

For Chinese retailers which lag behind their foreign competitors, they should face the challenges by improving their operation. They are also advised to extend into small and medium sized cities where they have better chance to win. Scores of Chinese enterprises in the commercial circulation business will get special attention from the government which hopes to help them grow to be giants with international competitiveness.

By People's Daily Online