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1st Publishing JV Set up in Chongqing

China opened its publishing sector with a landmark joint venture (JV) deal signed Monday morning in Chongqing Municipality, Southwest China.

The company will be funded by the Computer News, a leading IT newspaper based in Chongqing and Tom.com group, an online service conglomerate based in Hong Kong. The deal was approved early this year by the State Press and Publication Administration.

The publishing industry is one of the most tightly controlled sectors in China. The JV, with an approved operational period of 20 years, will be allowed to run retailing business of books, newspapers and periodicals.

The Computer News will hold controlling 51 percent of shares and Tom.com 49 percent, according to the deal. Tom.com will invest 200 million yuan (US$24 million) for the company while the Computer News's investment is intangible: for example its advertisement and circulation business, trademark rights and intellectual property, according to Li Zhigao, head of the Computer News.

Tom.com, founded in October 1999, is a subsidiary of the multinationals controlled by Hong Kong-based tycoon Li Kai-sing. The Computer News has been in operation for 12 years and has been the top one in term of circulation in China's IT media for the past eight years.

(Xinhua News Agency July 6, 2004)

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