Moet Hennessy, the wine and spirits arm of France's LVMH luxury group, says it will make red wine in China where a taste for the better things in life has boomed.

Moet Hennessy said it had joined forces with VATS, a Chinese wine firm, to develop a vineyard of 30ha in Yunnan province, southeastern China.

"It is the first time that LVMH has gone into red wine in China,'' a company spokesman said, adding that it would be ready to drink within four or five years.