China-Africa Development Fund seeks additional funding

With the benevolent sounding state-backed China-Africa Development Fund looking for another US$2 billion in funding this year, it looks like Beijing is going on another shopping spree in the resource-rich continent. The extra cash would bring the fund’s total value to US$3 billion, with a an ultimate target of US$5 billion, which may allow China to snap up a few more juicy deals. China Resources Enterprise plans to do a bit of shopping itself by disposing of non-core assets in a bid to drum up enough cash to buy Home World, which operates 73 hypermarkets, largely focused on northern China. Japan’s Itochu is also planning to cleave into China’s consumer sector by buying a 3% stake in Uny, a Japanese supermarket operator with plans to open a number of stores on the mainland. Itochu aims to acquire Uny shares by the end of March for about US$44 million. What this means for the consumer is anyone’s guess, but one thing is certain: Some drugs won’t be getting any more expensive. The NDRC introduced price caps on more than 1,000 drug brands with the aim of making medicines more affordable as part of its health care reform plans. But it’ll take a lot more than a pill to cure China’s health care sector.