Prosperity Minerals believes that China’s new five year economic plan will lead to expanding domestic demand.
The company has a broad range of assets including an iron ore trading business, real estate development and a number of cement related interests.
It has been sitting on a substantial cash pile since it sold most of its cement business for around US$490m – the final payment was received in August. Prosperity plans to invest in the Chinese iron ore and property assets to benefit from the countries ever expanding market place.
“The PRC continues to be the world’s fastest growing major economy and in its new five year plan 2011-15, there will be a palpable shift of focus from exports to the expansion of domestic demand and the welfare of China’s more than 1.3 billion inhabitants," chairman David Wong said.
“We believe this can only be good news for Prosperity’s prime businesses."
Yesterday Prosperity released its interim results for the six months ended 30 September 2010. The headline results were enhanced by the massive gains made following the cement divestments.