Beijing Enterprises considers spinning off tourism business
Highlighting hopes that the city will host the 2008 Summer Olympics, Beijing Enterprises Holdings is considering spinning off its tourism business for a separate mainland listing.
The listed investment unit of Beijing municipal government said the chances of Beijing winning the Olympics bid were high and the company would take advantage of the opportunity to bolster its tourism operation.
"We have high hopes about the growth of China's tourism industry, in particular Beijing, where we are.
The bid for Beijing to host the 2008 Olympic Games has further raised our expectations in the tourism business," Beijing Enterprises executive director and vice-president Bai Jinrong said.
Mr Bai said the company had received a proposal from an investment bank for the possible listing and the proposal was being studied.
He said that, if the listing plans were finalised, the assets to be spun off would include Beijing Badaling Tourism Development, Beijing Long Qing Xia Tourism and Beijing Jian Guo Hotel.
Beijing Enterprises holds a 75 per cent stake in each of the tourism development arms as well as a 50.5 per cent stake in the hotel.
He said Beijing Enterprises had not concentrated all its attention on the tourism sector, which accounted for about 5 per cent of total profit.
Beijing Enterprises reported a net profit last year of HK$515.95 million, up from HK$489.31 million.
