China Resources

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China Resources
华润
Type State-owned enterprise
Industry Conglomerate
Founded 1938
Headquarters Hong Kong
Area served China
Hong Kong
Key people Chairman: Mr. Song Lin
Revenue $52 billion (2012)[1]
Website China Resources
The China Resources building in Hong Kong

China Resources (simplified Chinese: ; traditional Chinese: ; pinyin: Huá Rùn; Cantonese: Wa4 Yeun6) is a group of companies in a wide variety of businesses in Hong Kong and China. Some of its companies use the name in the form of the acronym CRC.

History[edit]

The company started as Liow & Company (聯和公司) in Hong Kong in 1938. Its original purpose was to raise funds and purchase supplies and equipment for the People's Liberation Army, then engaged in the Chinese Civil War.[1] It was renamed as China Resources Company (華潤公司) in 1948. In 1983, the company was incorporated as China Resources (Holdings) Company Limited (華潤(集團)有限公司).

Operations[edit]

The company's main business focus is the export of mainland Chinese products (including energy) to Hong Kong. Its retail operations are organised under the China Resources Retail (Group), and include Chinese Arts & Crafts; it also runs a number of supermarkets in Hong Kong, originally under the CRC name, but now rebranded as Vanguard. It also owns Ng Fung Hong (五豐行), the monopoly meat importer into Hong Kong.

Rank[edit]

According to Fortune Magazine, China Resources was ranked 187th on the 2013 Fortune 500 list, improved 46 places since 2012. It is the 18th largest state-owned enterprise in China.[1]

Investigation[edit]

In 2013 the firm and its chairman, Song Lin, who also holds high government rank, was reported to be under investigation regarding purchase of coal mines in Shanxi for over a billion dollars, 9.9 billion renminbi, which have not produced any coal for several years after their acquisition. There are substantial reserves of coal in the mines, but developing it will require substantial further investments while, meanwhile, coal from newly opened strip mines in Mongolia has depressed the market. The deal raised questions about the leverage large state-owned firms had to borrow money at low interest for projects of dubious profitability and about where the money went and why.[1]

See also[edit]

Notes and references[edit]

  1. ^ a b c d Keith Bradsher; Chris Buckley (August 7, 2013). "Mine Deal Puts New Scrutiny on China’s State Industries". The New York Times. Retrieved August 8, 2013. 

External links[edit]