Lao Feng Xiang (SHA:600612, SHA:900905) plans to set up a subsidiary through its units, according to a Shanghai bourse filing on Wednesday.
The subsidiary, which will be named Lao Feng Xiang Luxury Sales, will have a registered capital of 50 million yuan and will retail jewelry, gold, silver and platinum products.
Lao Feng Xiang, through unit Shanghai Lao Feng Xiang, will take up 80% of the venture after injecting 40 million yuan into its registered capital. Another unit, Lao Feng Xiang Diamond Processing Center, will own 20% of the new subsidiary after contributing 10 million yuan.
The Chinese jewelry company's A shares declined less than 4% during morning trading.
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