Stock News: China Dairy expansion in milk powder production!

China Dairy Group, the largest dairy producer and distributor in northwest China, may rise after reporting that it has had preliminary discussions with major shareholder F&N Dairy Investments Pte Ltd for a possible milk powder joint venture. Replying to a query from the Singapore Exchange as to the possible reasons behind the brisk trade in its shares and the rising price, the company said it is planning to construct an additional milk powder production facility in Xi'an City in China amid rising consumer demand. "The matter has not been brought up to the board. No decision has been reached by the board as at the date of this announcement in respect of the aforesaid matters," the company said. China Dairy yesterday closed flat at 0.595 sgd, after trading between 0. 585 and touching a 52-week high of 0.650.