Jardine Fleming Securities says red chip China Food Holdings looks set to launch the long-awaited acquisition of a stake in Great Wall Wine from its mainland parent in this year's second quarter. Yesterday, the edible oil and food processing firm in an announcement to the exchange said it had made no definite decision to proceed with its asset acquisition plan or the timing of it. There were reports which suggested the company would execute the plan in the first half. Simone Sweerts of Jardine Fleming Research said in a report: 'China Food will initially buy a minority stake in the winery, which is estimated to have earned about $75 million in net profit in fiscal 1997. 'Great Wall sales have been on an upward trend in the past years and prospects for the wine industry in China remain promising.' The move could represent China Foods' first step in diversifying its scope of operations from processing edible oil and flour to the higher-return wine and beverage-making business. Together with Top Glory International Holdings, China Food is a listed vehicles of food-related giant China National Cereals, Oils and Foodstuffs Import and Export Corp (Cofco). Cofco has wine and beverage manufacturing facilities in the mainland producing Shaoxing's Yellow Wine, grape wine and Coca-Cola.