Lenovo Group Ltd, the world's third largest personal computer (PC) manufacturer, aims to boost its share of China's PC market to 35 per cent by the end of this year by expanding notebook sales, an executive said.

Notebook models are likely to account for as much as 40 per cent of China's PC sales within three years. They currently account for 18 per cent of the PC market, Liu Jun, chief operating officer of China's biggest computer maker, said at a conference in Shanghai yesterday. The company had 34 per cent of China's PC market in the second quarter.

Lenovo, which bought International Business Machine Corp's money-losing PC business in May for US$1.25 billion, aims to use the US company's Thinkpad brand to drive notebook sales in China. The Beijing-based company is also cutting costs and targeting overseas markets for expansion as it competes with Dell Inc and Hewlett-Packard Co.

"China's PC market is facing increasing competition as the market opens up to foreign competition," Liu told reporters.

Lenovo plans to consolidate manufacturing in China to lower costs and to target consumers and very small businesses in emerging markets including India to expand sales. The company will tap worldwide demand for notebook PCs and mobile phones, Chief Executive Stephen Ward said in New York on September 6.

Lenovo's shares rose 1.4 per cent to HK$3.60 (46 US cents) at the midday trading break in Hong Kong, bringing their gain this year to 55 per cent. The shares had their biggest gain in four years on August 11, jumping 13 per cent, after Lenovo said profits rose 6 per cent to HK$357 million (US$46 million) in the three months ending on June 30.