GUANGZHOU, Jan 12, 2006 (SinoCast via COMTEX) --Shenzhen-listed medicine maker Guangzhou Baiyunshan Pharmaceutical Co. recently announced its joint venture with Hong Kong business giant Hutchison Whampoa (China) Limited plans to set up a huge fund from this year.

The 50-50 medical joint venture Hutchison Whampoa Guangzhou Baiyunshan Chinese Medicine Company Limited aims to support the research and development of new medicines, as well as technological transformation.

According to the plan, the venture will put aside 5% of its annual sales revenue as the independent innovation funds, injecting into R&D projects of Chinese medicines.

Hutchison Whampoa Guangzhou Baiyunshan, whose sales revenue is CNY 600 million, has CNY 30 million innovation funds this year. And this figure is expected to be increasing year after year.

Statistics showed China's pharmaceutical enterprises only put 1-2% of their sales revenue into the R&D projects, while this proportion is less in the country's traditional Chinese medicine enterprises.