• China's stock market boom expected in 2014

    Dec 27, 2013

    The Chinese Academy of Social Sciences (CASS) has said there is a strong possibility that the country's stock market make dramatic gains next year when the government reopens the market for IPOs. Although there will be challenges, the CASS said in a report that a dramatic rise in the stock market could happen next year, resembling that of 1999 in many ways. Within two months from mid-May in 1999, the benchmark Shanghai Composite Index increased from around 1,100 to more than 1,600. With the relaunch of IPOs next year striking rises should be expected, experts said.

  • Foreign firms in China feel targeted

    Sep 2, 2014

    The American Chamber of Commerce warned that a growing number of foreign companies in China feel they are targeted by China's anti-monopoly investigations. Quoting a recent survey, the American Chamber of Commerce in China said foreign companies believe they face ‘selective and subjective enforcement’ of anti-monopoly, food safety and other rules, which it said could cause investment decline. The investigations, which have scrutinised at least 30 foreign firms so far, have prompted US companies to appeal to Washington, while the European Union Chamber of Commerce said last month China appeared to be unfairly targeting foreign firms. The National Development Reform Commission, however, reiterated that the agency was giving equal treatment to both local and foreign companies.

  • 16 Chinese firms in Fortune 500 incur losses in 2013

    Sep 2, 2014

    At least 16 Chinese enterprises that are on Fortune magazine's top 500 made losses in 2013, racking up staggering deficits totaling Rmb37.7bn (USD6.1bn), a Shanghai-based news agency reported. The 16 firms include China Railway Materials Commercial Group, Hebei Iron & Steel Group, Anshan Iron and Steel, China Metallurgical Group, China Aluminum, China Ocean Shipping Company (COSCO), Henan Energy and Chemical Industry Group, Datong Coal Mine Group, and Shougang Group. Most of the 16 firms have been burdened by overcapacity. The report added that total debts of the 16 firms currently top Rmb2.95tr (USD480bn).

  • Biggest DFS in the world launched in Sanya

    Sep 2, 2014

    The biggest duty-free shop in the world was launched on 1 September in the Chinese city of Sanya in Hainan Province. The Haitang Bay duty-free shopping centre at present has about 300 international brands like Giorgio Armani, Prada and Rolex. The DFS has an area of 72,000 sq. m., replacing an older DFS, which is now just a seventh in size of the new DFS. The China International Travel Service Group put in Rmb5bn (USD814m) in the DFS that the China Duty Free Group manages.

  • China, Japan, South Korea to close free-trade deal in 2015

    Sep 2, 2014

    Negotiators from China, Japan, and South Korea demand that the comprehensive trilateral free trade agreement they have been discussing must be agreed upon next year. Wang Shouwen, the assistant minister of commerce in China, said that all three countries agreed to speed up the China-Japan-South Korea FTA talks and if possible sign the agreement after the fifth round of negotiations, which began on 1 September, is over. The current round is set to end on 5 September.

  • OSI to have another company handle China plant management

    Sep 2, 2014

    US-based OSI Group LLC announced that it will pass over the management of one of its food-processing plants in mainland China to a unit of fellow American food-service firm Golden State Foods Corp. Analysts see this as a means to rehabilitate OSI's reputation after allegations that it sold expired meat in China. Golden State's KanPak China subsidiary will now handle OSI's plant in Guangzhou. OSI operates ten such plants in the country.

  • Microsoft to explain compatibility and bundling issues in China

    Sep 2, 2014

    China's State Administration for Industry and Commerce has given Microsoft Corp 20 days to offer its explanation on compatibility and bundling issues of its software products. According to the SAIC, the deadline was given on 1 September. Vice-President David Chen, who handles Microsoft's legal and corporate matters in China, was one of those who were present when Chinese authorities made their request. China is currently undertaking investigations on foreign companies' business practices particularly those related to local anti-monopoly laws. SAIC admitted that it took possession of email and other materials by Microsoft and seeks to talk with the firm's executives.

  • Accuray Inc seeks to expand presence in China's medical industry

    Sep 2, 2014
    Nasdaq-listed Accuray Incorporated is reportedly in the move to expand its presence in China, targeting one to two million tumor patients that require radiation treatment. Accuray, which specialises in radiation oncology, first launched its Tomo Therapy System in China in 2007 and is currently strengthening its relationship with physicians and patients for its expansion. Accuray's treatment solutions, CyberKnife and Tomo Therapy Systems, have installed about 700 sets in hospitals around the world.
  • US firm KKR exits China Modern Dairy for USD80m

    Sep 2, 2014

    American private equity company KKR & Co LP has officially exited China Modern Dairy after selling its remaining stake for around USD80m, Reuters reported. KKR confirmed the sale but did not give further details. KKR's Julian Wolhardt, however, said the US company is very proud to have partnered with Modern Dairy since 2007 in providing safe and healthy drinking milk to Chinese consumers. KKR, which bought stakes in China Modern Dairy in 2008, almost tripled its original investment when Modern Dairy went public in 2010.

  • Crackdown against corrupt Chinese officials to continue

    Sep 2, 2014

    China's Central Commission for Discipline Inspection (CCDI) announced this week that the crackdown against corrupt ranking officials in the country will continue. The crackdown, dubbed ‘Tiger Hunt,’ will go on as long as there are corrupt government officials in China, said CCDI Secretary Wang Qishan. Although he did not directly answer questions pertaining to other high ranking government officials who might soon be taken into custody, Wang said the public will soon find out. The ‘Tiger Hunt’ has resulted to the arrest of former Security Chief Zhou Yongkang.

  • Poultry farm hit by H5N6 bird flu outbreak

    Sep 2, 2014

    The dreaded H5N6 bird flu virus, which has resulted to billions of dollars of industry damages last year, again hit a poultry farm in northeast China, resulting to the death of nearly 18,000 geese. The Ministry of Agriculture has sealed off and sterilised the infected area, besides culling and safely disposing of almost 69,000 geese. As many as 20,550 geese on the farm in Harbin showed symptoms of the bird flu.

  • Chongqing begins importing vehicles by trains

    Sep 2, 2014

    The very first automobiles imported into mainland China by rail system arrived in Chongqing on 1 September. The vehicles imported from Germany that include famous brands such as Mercedes Benz, BMW and Volkswagen, arrived by way of the Chongqing-Xinjiang-Duisburg international railway. Beijing approved the vehicle-importation project in July 2014. It is the first of its kind in the western region of Greater China. The railway importation took a little over two weeks from the German city of Duisburg to Chongqing – saving two thirds of the time it takes to import by ships.

  • China's final August PMI hits 3-month low

    Sep 1, 2014

    China's National Bureau of Statistics (NBS) and China Federation of Logistics and Purchasing (CFLP) said that the country's manufacturing sector expanded at 51.1 in August, the slowest pace in three months. Manufacturing lost its momentum as the growth in output and new orders cooled, a private survey showed. With the slow manufacturing expansion, China is expected to announce more stimulus measures in the next few weeks, said Lu Ting, Bank of America Corp’s Hong Kong-based head of Greater China economics. The final PMI August reading missed the median 51.2 estimate in a Bloomberg survey.

  • Alibaba may launch world's largest IPO next week

    Sep 1, 2014

    The much-awaited US initial public offering of Alibaba, China's largest e-commerce company, is expected to be launched early next week. The launch, which is set to become the world's largest IPO in years, could raise more than USD20bn, making it one of the largest ever in the US. Facebook raised USD16bn in its IPO two years ago. Next week's IPO launch is expected as the company's ongoing discussion with US regulators is set to wrap up next week, a source said as cited in a news platform. The US Securities and Exchange Commission must approve IPO listing documents before a company can set a price and launch a deal. If the timing holds, Alibaba shares could begin trading as soon as 18 or 19 September.

  • China Eastern Airlines' H1 net profit falls 98%

    Sep 1, 2014

    China Eastern Airlines had its net profit falling a disastrous 97.76% year-on-year in H1 of this year. CEA only made Rmb14m (USD2.28m), registering a business revenue of Rmb42.59bn (USD6.93bn) from January to June 2014 -- a 2.68% increase year-on-year, according to a statement filed with the Shanghai Stock Exchange on 31 August. CEA said that its substandard performance was caused by fewer high-end business tourists, improved high-speed trains and geopolitical instability.

  • CSR seeks localised offerings in Southeast Asia

    Sep 1, 2014

    For 17 years, CSR Zhuzhou Electric Locomotive Co has been shipping trains and other rail vehicles worldwide. This year, it announced a plan to offer localised services, including manufacturing and maintenance facilities, in the rail transit market of Southeast Asia. CSR, a unit of China South Locomotive and Rolling Stock Co, the biggest manufacturer of electric locomotives globally, began its expansion overseas four years ago in Malaysia and at this point has 38 electric units in operation in Kuala Lumpur.

  • Weakening yuan pulls China's corporate revenues down

    Sep 1, 2014
    Companies in China have been borrowing cheap money overseas, but they are paying the real price for it now. Many Chinese firms complained to have sustained hits to their H1 financial results from foreign-currency exchange rates. These firms borrowed billions of dollars from the United States, Hong Kong, and other places and the weakened Chinese yuan has made Chinese exports cheaper to sell overseas and interest payments on foreign debt more expensive. Bei Fu, Standard & Poor's analyst, said that it is difficult to tell if the yuan will keep appreciating in the next three to five years.
  • China, Russia to begin construction of joint gas-pipeline in Siberia

    Sep 1, 2014

    The governments of China and Russia will begin working on a joint natural-gas pipeline in eastern Siberia on the first week of September. The two sides signed a natural-gas supply contract early this year. China's Vice Premier Zhang Gaoli arrived in Bejing after attending a start-of-construction ceremony for the joint project. Pipe welding will start in the Russian side of the East Route of the China-Russia natural gas pipeline, which the Russians call ‘Siberia Power’ pipeline.

  • Chinese banks report slower profit growth in H1

    Sep 1, 2014

    Five of China's 16 listed banks reported a net profit growth rate of less than 10% in H1 2014, from only two banks at the same time last year. The five banks, including Bank of Communications, China Citic Bank, Everbright Bank, China Construction Bank and the Commercial and Industrial Bank, said the single-digit profit growth is a result of an economic slowdown at home and abroad. Of all the major banks in China, the Commercial and Industrial Bank had the biggest net profit of Rmb148.4bn (USD24bn) in H1, exceeding the combined net profits of Sinopec, CNPC and CNOOC, China's three oil giants.

  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • USD1.35bn in QFII quotas granted in August

    Sep 1, 2014

    A total of USD1.35bn worth of QFII quotas was handed out by China's State Administration of Foreign Exchange (SAFE) to eight overseas fund managers in August. The August figure brings the total volume of allocations awarded under the scheme to USD59.7bn, covering 254 financial entities, the SAFE said. The outstanding amount under its Renminbi Qualified Foreign Institutional Investor (RQFII) program stood at Rmb278.6bn (USD45.36bn) for the month, said the country's foreign exchange regulator.

  • Weak China demand drags S. Korea's exports in August

    Sep 1, 2014

    Weaker demand from China has caused South Korea's exports to fall slightly in August. Exports to China, the largest export market of South Korea, fell in August for a fourth consecutive month year-on-year, the longest losing streak in two years. South Korea's exports in August dropped 0.1% from a year ago, the country's trade ministry said. After China, the United States and the European Union are the next major destinations for South Korean exports.

  • China Galaxy Securities seeks to raise USD1.24bn in Shanghai IPO

    Sep 1, 2014
    One of China's largest brokerages, China Galaxy Securities Co Ltd, seeks to raise about Rmb7.6bn (USD1.24bn) as it plans to list in Shanghai. Galaxy aims to sell 1.69 billion A shares when its application is approved by the China Securities Regulatory Commission (CSRC). Galaxy hopes to list in China after the government resumed listing and IPOs in January following a 14-month hiatus.
  • Yuan deposits at Singapore banks hit Rmb254bn

    Sep 1, 2014
    The Monetary Authority of Singapore (MAS) announced that banks in Singapore held Rmb254bn (USD41.33bn) worth of yuan deposits at the end of June, boosting the country's goal to become a major offshore trading centre for the Chinese currency. The amount was higher than the Rmb220bn (USD35.80bn) that banks held at the end of Q1. To further promote the use of yuan, Singapore and China have agreed to allow eligible companies and individuals in the Suzhou Industrial Park to conduct cross-border yuan transactions with the city-state.
  • Bad debt manager Huarong gets USD2.4bn investment

    Aug 29, 2014

    A group of Chinese and foreign investors, including Goldman Sachs and Warburg Pincus, poured about USD2.4bn of investment into China's biggest bad debt manager, China Huarong Asset Management, ahead of the company's IPO in Hong Kong. State-owned Huarong sold 20.98% stake to the eight investors for Rmb14.54 (USD2.36bn), which in turn valued the company at about USD11bn. Huarong was established by the government to clean up the banking system of bad loans. It has become the biggest of the four state-owned firms set up in the late 1990s to take bad loans off the books of China's biggest banks.

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