BizChina

Blue Focus Communication Group LLC, a Beijing-based public relations company, got a promotional boost of its own when it was listed on the second board on Feb 27.

That glow is also being cast on other Chinese PR companies as investors and financial experts put their own spin on prospects for the sector.

According to the disclosure issued with its initial public offering (IPO), Blue Focus posted 330 million yuan in revenue and a profit of 44 million yuan in 2008. The company's shares closed Thursday at 48.62 yuan, up from the initial offering price of 33.86 yuan.

"Fashion fades, only style remains the same," says Jasper Liu, 26, summarizing his approach to shopping by quoting Coco Chanel.

Liu, a self-described "Shanghai Hipster," represents the nouveau riche of China. He reads English literature, watches European movies, drinks fine champagne and is a loyal patron of luxury retailers, namely Lanvin and Yves Saint Laurent.

The affection is mutual: Fashion houses with global ambitions are courting Chinese consumers like Jasper, eager to learn how they spend, why they spend and just how much they're willing to spend.

The answer: quite a lot if the quality and label are right. In a recent study by retail consulting firm Pao Principle, the average Chinese luxury consumer will spend roughly 11% of her income on luxury handbags alone. The group's favorite brands, in order of preference: Louis Vuitton, Gucci, Coach, Chanel and Prada.

Over the past year Patti Pao, the founder of Pao Principle, has collected data on the mainland's elite consumers: amassing a panel of 356 individuals who have purchased a luxury handbag, watch or fine jewelry piece in the last twelve months. Her snapshots of their habits create a portrait of a misunderstood luxury consumer who is highly educated and highly motivated to identify products that will complement his or her individuality and rising power.

American International Group shares were up more than 10% today, gaining along with many other financials, including Citigroup and Regions Financial.

China Southern Airlines is gaining today after yesterday's announcement that it would be doing an offering to repay debt. Currently shares are up nearly 9%.

The richest man in China, beverage baron Zong Qinghou of Wahaha Group is ranked No. 103 on the global list of billionaires compared with No. 376 previously. Zong is worth $7 billion, compared with $1.9 billion last year.

Only a few years ago, an ugly legal dispute between China’s beverage giant Wahaha and joint venture partner Danone over the right to use the Wahaha brand had brought a cloud over both in China. With the dispute resolved last year, Wahaha is well-positioned to turn its attention to new products. Forbes talked to Chairman Zong in his office in China’s eastern city of Hangzhou about this year’s business outlook, new products and succession. Excerpts follow.

What’s the growth outlook for China’s beverage industry this year?

Zong Qinghou: The market will continue to grow more than 20%. The market has become concentrated--about five companies--Wahaha, Coke, Pepsi, Tingyi and President have more than half, and if you add in about 10 more firms, the total is 80%. The bigger companies will have a larger and larger market shares. Also, more and more companies will be looking to differentiate their product. China already has one of the largest number of drink varieties in the world, and this will continue.