China's biggest copper producer has established a wholly-owned subsidiary in Hong Kong in order to reduce the cost of financing raw material imports and future acquisitions.
According to Reuters Jiangxi Copper Co Ltd (SEHK:358) has established Jiangxi Copper Hong Kong Co., Ltd. to finance the company's imports of copper concentrate and acquisitions on the global market.
The new Hong Kong-based subsidiary should reduce the cost of Jiangxi Copper's international transactions while also making them quicker and more convenient.
Chinese companies usually require several weeks to process dollar loans for import purchases due to controls on the yuan and currency outflows.
Financial controller Gan Chengjiu announced in March that Jiangxi Copper will raise imports of copper concentrate in 2012 by 13% to 1.02 million tonnes.