Chinese clothing announced yesterday that it signed the "asset replacement agreement" with its largest shareholder, Han Bo (China) Limited, in June 27th. It intends to replace the property owned by Zhejiang building and COSCO with the 39 million 822 thousand and 900 yuan of some receivables.

Under the pressure of rising raw materials and appreciation of the renminbi, the replacement of Chinese clothing with textile and garment production as the main business will improve the assets structure of the company and help the company to improve its performance.

"The replacement is the continuous integration of the assets of the company after the first largest shareholder of the company," said the Chinese clothing secretaries office in an interview with the daily economic news. The property that is replaced by the large shareholders is mainly used for the future office of the company.

It is worth mentioning that since June 2006, the largest shareholder, Han Bo (China) Limited has entered into Chinese clothing, and has begun to consolidate its operations and assets in a bold way. It has injected high-quality assets through stripping off inefficient assets and non main business assets.

In June this year, Chinese clothing invested 1 billion 200 million into Hubei to establish the Chinese clothing (Xiantao) industrial city.