Leading lingerie manufacturer, Wacoal Corp, is to set up two new sales units in China by the end of this year as it looks to cash in on the lucrative Chinese market.

It said the new units in Dalian, Liaoning Province, and Chengdu, Sichuan Province, will be formed to meet an expected surge in demand for women's underwear.

Wacoal added it expects sales at its existing three Chinese units to jump 37 per cent to 735 million yen this year.