HARBOUR Ring International Holdings has signed a letter of intent with Shanghai Toys Import and Export Corp to form a trading joint venture.
Harbour Ring executive director Lewis Luk Tei said the venture would enable the company to carry out the import and export of toys in China, paving the way for further penetration of the mainland market.
He said the venture would be of good potential for trading business in China, in view of the expected re-entry of Beijing to the General Agreement on Tariffs and Trade.
He said Harbour Ring would hold a 70 per cent interest in the venture while the Shanghai partner would own the remaining 30 per cent.
Mr Luk said the group was expanding its retail presence in China and planned to open 10 shops in major cities, the first being in Shanghai.
It would also develop its retail strength in the country through a franchise network.
Mr Luk said the mainland's toy market had tremendous potential for growth as it was estimated that there were more than 400 million children below the age of 10 in the country.
