West China Metropolis Daily, 2/26/09
China's Ministry of Commerce has begun accepting tenders from distributors for a government-sponsored rural subsidy promotion for desktop and laptop computers. Distributors and most computer manufacturers operating in the 16 provinces and municipalities covered in the promotion can participate in bidding.
On February 19 and 21, domestic and international computer manufacturers participated in the first round of product bidding, with participating companies including Lenovo (0992.HK), Founder Technology Group (600601.SH), Haier, Tsinghua Tongfang (600100.SH), Dell, HP, Hasee, and Malata. Bidding results are expected to be released on March 1.
According to the regulations of the subsidy program, in order to qualify for the subsidy, desktop computers must be priced lower than RMB 3,500, while laptop computers must be priced lower than RMB 4,500. Industry estimates suggest that the rural promotion is likely to spur RMB 10 bln in sales, and sell between 5 mln and 6 mln computers.
Keywords: government subsidy forecast 0992.HK 600100.SH 600601.SH bidding computer Dell desktop Founder Technology Group Haier hardware Hasee HP Lenovo Malata Ministry of Commerce Tsinghua Tongfang notebook rural