China's stock market boom expected in 2014Dec 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.
More mainland firms set to list in Hong KongOct 22, 2014
The upcoming Shanghai-Hong Kong Stock Connect programme is expected to lure more mainland firms to list in Hong Kong, an official told the Global Times. Hong Kong Exchanges and Clearing (HKEx) Beijing Office Representative Judy Huang said the forthcoming Stock Connect programme will enable mainland investors to buy shares directly from the Hong Kong bourse. The Stock Connect programme was created after mainland and Hong Kong securities regulators agreed on it last April, enabling global investors to trade Shanghai A shares via the Hong Kong Stock Exchange. The programme also allows mainland investors to trade Hong Kong H shares through the Shanghai Stock Exchange.
Premier Li calls for global unity in fight vs EbolaOct 22, 2014Chinese Premier Li Keqiang has urged the international community to join hands and cooperate in the fight against the growing threat of the deadly Ebola virus. Xinhua reported that Li spoke with UN Secretary-General Ban Ki-moon over the phone to discuss about the threat. The Chinese premier said the international community needs to coordinate and cooperate further to combat the disease, which he said poses a pressing threat to the global public health.
Singapore's Frasers still optimistic on Chinese marketOct 22, 2014
The economic slowdown of China is just part of the adjustment for a better development down the line, said CEO Choe Peng Sum of Singapore's Frasers Hospitality -- a hospitality-asset management firm. Sum added that the rate of development in China is still very impressive and that its economy will eventually recover and flourish. Frasers currently operates 14 serviced residences in ten Chinese cities, including Shanghai and Beijing.
Shanghai stocks dip as China's economic growth rate dropsOct 22, 2014
The Shanghai Stock Exchange's numbers declined on 21 October due to increasing worries regarding China’s economic growth rate, which rose at its lowest in over five years in Q3 of this year. The Shanghai Composite Index fell 0.72% to 2,339.66 points. The country's GDP went up just 7.3% year-on-year during the months of July, August and September. Q2 growth rate was at 7.5%, according to China's National Bureau of Statistics.
Security of Apple’s iCloud service in China unstableOct 22, 2014
US-based Apple Inc’s iCloud service in mainland China has been criticised for its supposedly unstable security measures. Hackers allegedly can easily intercept data that contain usernames and passwords. GreatFire.org, the online censorship watchdog, has accused China-based hackers of attacking iCloud, although some experts are saying that the allegation cannot be confirmed.
Manchester launches investment portfolio in BeijingOct 22, 2014
Manchester, the former industrial centre of the United Kingdom, sent a delegation of business representatives to start an investment portfolio in Beijing. The portfolio, available in English and Chinese, displays a wide range of Manchester opportunities including infrastructure like Ocean Gateway, a strategic corridor stretching 40 miles from Manchester to Liverpool. Another is the NOMA, a ten-year regeneration project to put up a new neighbourhood.
Beijing tops list of mainland-Chinese cities with highest rental ratesOct 22, 2014
With an average monthly rental price of Rmb64.83 (USD10.59) per sq. m., Beijing is China's most expensive city, according to the country's National Bureau of Statistics. The agency added that the nation's home-rental price rose 2.6% on average in September year-on-year. It has been the 57th straight month of increase. Meanwhile, Shanghai placed second with an average monthly rental price of Rmb58.18 (USD9.50) per sq. m. The third to tenth spots were taken by Shenzhen, Sanya, Guangzhou, Hangzhou, Xiamen, Nanjing, Fuzhou, and Wenzhou.
FB, IBM CEOs added to Tsinghua's advisory boardOct 22, 2014
Tsinghua University School of Economics and Management added Facebook CEO Mark Zuckerberg and IBM CEO Virgina Rometty to the Beijing university's advisory council. Facebook announced that Zuckerberg will be at Tsinghua's annual board meeting in Beijing on 24 October. Rometty, on the other hand, cannot be at the board meeting but will be in China in November.
China's auto sales to slow this yearOct 22, 2014
Growth in China’s auto sales is expected to slow this year to 4.6% from an earlier projection of 8.3%, said Dong Yang, secretary general of the China Association of Automobile Manufacturers (CAAM). In an interview with Bloomberg, Dong said the CAAM has noted the slowdown in sales in the past two months and is looking into the reason for the slowdown. In September, auto sales in China grew 2.5%, the slowest in 19 months.
Agricultural Bank of China names new leaderOct 22, 2014
One of China's big four banks, the Agricultural Bank of China (ABC), announced the appointment of Liu Shiyu as the bank's new secretary of the Party committee. Liu, who was previously deputy governor at the People's Bank of China, will replace Jiang Chaoliang, who left the bank on 31 August. Liu's appointment was announced by ABC on the website of the Shanghai Stock Exchange.
Airbus Helicopters banks on China growthOct 22, 2014
The world's largest civil helicopter maker, Airbus Helicopters, said it expects to raise its annual sales in China by 150 units by 2020, making China and Hong Kong its biggest global market by then. Airbus Helicopters China President Norbert Ducrot said China is still a very small market for the company but with a big potential, especially now that civil private helicopter operators start to emerge in the country. The company expects to sell around 30 to 40 helicopters in China this year.
China's ODI seen to rise 10% annuallyOct 22, 2014
A senior commerce official said China's overseas direct investment (ODI) is projected to rise at least 10% per year in the next five years. Chinese ODI is set to hit USD120bn this year but Zhang Xiangchen, assistant minister at the Ministry of Commerce, said Chinese firm's ODI still lag behind foreign competitors, especially with American and Japanese firms. Zhang, however, said it is only a matter of time that China's outbound investment will rise, eclipsing inbound investment.
China's Q3 GDP growth slowest since Q1 2009Oct 21, 2014China's National Bureau of Statistics (NBS) announced that the country's gross domestic product rose 7.3% in the third quarter, the slowest increase in more than five years. The Q3 growth retreated from 7.5% in Q2 of this year and is the slowest since Q1 of 2009, when GDP growth was 6.6%. The slow growth was attributed to a slumping real estate market, weak industrial production and domestic demand. The property sector, which takes up about half of China's GDP, was a major drag as housing sales dropped 10.8% by value from January to September of this year, the NBS reported. The GDP figure, however, was faster than a median 7.2% growth forecast by 15 economists surveyed by the Wall Street Journal.
CNR bids to sell high-speed trains in CaliforniaOct 21, 2014
China is making its first concrete attempt to sell high-speed trains abroad with state-backed China CNR bidding to sell trains to California. CNR is working with US-based SunGroup USA to bid for California's USD68bn high-speed rail project. The contract involves supply of up to 95 trains that can travel 354 kph, Reuters reported. CNR and other high-speed train manufacturers are expected to submit their bids to the California High Speed Railway Authority by 22 October. CNR is competing against manufacturers from countries including Japan and Spain.
Chinese steelmakers look for profits abroadOct 21, 2014
Due to a shrinking local demand and excess capacity, the Chinese steel-making industry now seeks to tap overseas markets for a more sustained and long-term growth. Hebei Iron &Steel Co, the country's second-biggest steel manufacturer in terms of volume, believes that the present problems hounding the steel sector can be offset by selling more of its products abroad. The province of Hebei used to be able to produce 30% of the global steel output annually, but a lot of its steel mills have now been shut down. Hebei Iron &Steel has plans to build China's largest steel mill abroad in South Africa, with construction planned to start next year.
China-led consortium is only bidder for Mexican rail projectOct 21, 2014
An eight-member consortium that China South Locomotive and Rolling Stock Co and China Railway Construction Corp Ltd lead, was the sole group to present a proposal before the deadline for a high-speed passenger railway that will connect the cities of Mexico and Queretaro. According to Mexico's Ministry of Communications and Transportation, Queretaro is the country's aerospace-industry hub, so Mexico intends to have a railway line to serve over 23,000 commuters.
Takeda seeks to make China its 2nd-largest drug market within a decadeOct 21, 2014
Takeda Pharmaceutical Co, the biggest pharmaceutical firm in Japan, revealed its goal of making China its second-biggest market in 10 years' time through faster introduction of new products. Takeda added that it intends to launch three to four new drugs in China from now until 2019, specifically pharmaceuticals for tumors and diabetes. Takeda's emerging-markets President Giles Platford said that China is currently the company's fourth-biggest market sales-wise.
China Q3 cross-border yuan settlement hits USD781.31bnOct 21, 2014The People's Bank of China, the country's central bank, reported on 20 October that the nation's cross-border yuan settlement has surpassed Rmb4.8tr (USD781.31bn) by the end of September 2014. The PBOC made the announcement on its website that the huge yuan settlement has helped make the country's official currency the second-biggest cross-border payment currency of China. PBOC Vice-Governor Hu Xiaolian said that the yuan's internationalization is a huge contributory factor in the world's financial market.
China's investment in Korea hits USD780mOct 21, 2014
China's investment in Korea during the first six months of the year reached USD780m from USD480m during the same period last year, BusinessKorea reported. A representative of KOTRA, a state-funded trade and investment promotion organization operated by the Government of South Korea, said China's investment in Korea has shifted from real estate to culture and fashion industries. Sources said the establishment of an RMB clearing bank in Korea and the introduction of other investment-friendly policies are set to further bolster Chinese investment into the country.
Nestle opens dairy farm institute in HeilongjiangOct 21, 2014
In addition to the Swiss food giant’s existing facilities in China, Nestle has officially inaugurated its dairy farming institute in northeast China's Heilongjiang province. The institute, which was constructed over the past two years, features several classrooms and three dairy farms. Shanghai's China Business News reported that Nestle has also signed a memorandum of understanding with the Hielongjiang provincial government for the building of a fresh milk supply base worth USD408m.
Real estate investment slows furtherOct 21, 2014
China's real estate investment growth dropped in the first three quarters of the year, the National Bureau of Statistics (NBS) said. NBS data released on 21 October also showed that property sales and new construction declined, triggering a slowdown in the country's economic growth. Real estate investment went up 12.5% from January to September year on year. However, the figure is lower than the 13.2% growth in the first eight months of 2014. Revenue from property sales also dropped 8.9% while new construction tumbled 9.3%.
China's property industry continues to declineOct 20, 2014
Mainland China's real-estate slump is getting worse, badly affecting not just households and varied industries but home buyers and lenders alike are staying away, causing developers to go bankrupt. Many developers are cheating investors by way of scams, even as legit companies are running short of funds causing lending rates to go as high as 50%. In Handan, city officials are attempting to get back the USD1.5bn that developers supposedly came up with illegally, mostly from individual investors who were promised with huge returns.
Jin Liqun to head China's AIIBOct 20, 2014
Jin Liqun, former vice finance minister and development bank official, has reportedly been appointed as head of the proposed USD50bn Asian Infrastructure Investment Bank (AIIB). The Business Times reported that Jin, who recently resigned as chairman of China International Capital Corp, will be the head of AIIB this month. The appointment of Jin, although still has not been confirmed by Chinese authorities, further strengthen the chances that the AIIB will become a new Asian regional development bank. At least 20 countries have shown their interest in joining the bank as shareholders.
EU will not probe ZTE, HuaweiOct 20, 2014
The European Union has decided not to push through with a proposed anti-subsidies investigation into telecommunications-equipment manufacturers ZTE Corp and Huawei Technologies Co of China. The EU made the announcement after it convened with China during a trade-committee conference in Brussels on 18 October. Although the EU still has to accomplish internal procedures that its commissioners will approve in the third week of this month.