Our daily round-up of the best China stories from the 21st Century Business Herald.

Hong Kong arrests baby formula smugglers
Hong Kong arrest twenty-five people in the first three days since implementation of a new rule to restrict the amount of baby formula that mainlanders can buy in the free trade city.

According to the regulation, traders carrying more than 1.8kg of infant formula into China are subject to a maximum penalty of two years in jail and a HK$500,000 fine.

Wahaha to expand overseas
Zong Qinghou, chairman of Hangzhou Wahaha Group Co, has been looking for suitable investments in Europe.

The beverage tycoon, also China’s richest man, plans to invest in high-tech projects overseas and will continue taking trips to Europe to expand his newly launched shopping mall businesses in China.

China Merchants Bank profit up 25 pct
China Merchants Bank, the mainland's sixth-largest lender by assets, announced that its net profit rose 25.3 percent to 45.27 billion yuan last year.

The bank's revenue rose 17.9 percent year-on-year to 113.37 billion yuan. The non-performing loan ratio, a measure of bad debt, edged up to 0.61 percent last year from 0.56 percent a year ago.

Net interest margin of the mainland's 3,800 lenders contracted to 2.75 percent in the fourth quarter from 2.77 percent in the third, the CBRC said. This performance measure is the difference between interest income and cost of funds, as a ratio of interest-bearing assets.