58.com files for US IPOOct 1, 2013China's 58.com Inc, a local classified-advertisement website, filed for an IPO of up to USD150m in American depositary shares as the site looks to fund further growth. 58.com, which became only the second mainland China-based company to complete a US IPO this year, said it would use the proceeds for general corporate purposes, these may include product development, technology investment and marketing, among others.
AIIB founders sign AOA; China gains 30% stakeJun 29, 2015
The 50 prospective founding members of the China-led Asian Infrastructure Investment Bank on 29 June signed the bank’s articles of agreement (AOA). This officially laid down the ground rules for the new bank, which is considered a rival to ADB and the World Bank. Seven other prospective founding members haven't signed the articles yet as they wait for local approval. Under the AOA, China will have a USD29.78bn contribution of the AIIB's USD100bn capital, to become the biggest shareholder with a 30.34% stake.
BOC becomes yuan-clearing lender in HungaryJun 29, 2015
The Beijing-based Bank of China has received approval to be the clearing bank for yuan business in the European nation of Hungary. According to a People's Bank of China announcement on 28 June, the BOC Budapest branch will perform the yuan-clearing activities. The BOC can also help in China's Belt and Road Initiative -- the Silk Road Economic Belt and the 21st Century Maritime Silk Road - which is intended to be the modern version of the ancient trade route between the continents of Asia and Europe. It covers more than 60 countries and regions with an overall population of 4.4 billion.
Yuan will 'float' despite PBOC interest-rate cut and Greece troublesJun 29, 2015
China's official currency, the yuan or renminbi, might still stay buoyant even though the People's Bank of China, the country's central bank, has cut its benchmark interest rate, and Greece is about to exit from the eurozone. Greek Prime Minister Alexis Tsipras has called for a referendum regarding the financial bailout. The PBOC has freed up lending reserves for some banks, but all these factors don't prevent Chinese stocks from staging a rally, not even reacting to the USD’s rise due to hopes that the yuan might be included in the list of reserve currencies of the International Monetary Fund.
Huawei to train Ghanaian studentsJun 29, 2015
Shenzhen-based Huawei Technologies Co Ltd in the next four years will train qualified students majoring in information and communications technology from the African nation of Ghana. According to Huawei, this is part of the company's worldwide corporate social responsibility program called "Seeds for the Future," which it launched in Thailand seven years ago. The program has been applied in 40 nations, benefitting more than 10,000 students in about 100 colleges and universities. Huawei Ghana branch CEO Xu Hu said that the beneficiaries will be sent to China for training.
Carlyle Group, Goldman Sachs Shanghai investing in Shanghai ANEJun 29, 2015
US-based Carlyle Group LP and Goldman Sachs Group Inc, along with China Renaissance, are putting their money in logistics firm Shanghai ANE Logistics Ltd of China. Their confidence is based on the belief that demand for delivery services will grow for the country's surging e-commerce sector. Shanghai ANE delivers small orders all throughout China by way of a network of 5,000 franchised stores. Carlyle Group has invested USD120m into the enterprise.
China considers income-tax reformsJun 29, 2015
The Chinese government is studying the possibility of enforcing reforms of the country's personal income-tax rules. Finance Minister Lou Jiwei said that the nation grossed Rmb443bn (USD71bn) from taxes in 2014 or 3.2% more than the expected. Lou made his statement during a briefing of lawmakers on China’s final accounts for last year. Lou revealed that the overrun to urban-income growth was surprisingly faster than projected. There are proposals to increase China's tax-exemption threshold of Rmb3,500 (USD563.71) monthly to Rmb10,000 (USD1,610.65).
Robust growth seen for China's media and entertainmentJun 26, 2015
The latest consumer and advertising spending report released by PricewaterhouseCoopers showed that expenditure in China's media and entertainment sector will rise to USD2.35bn in 2019 from USD1.43bn in 2014. According to the five-year forecast contained in the PricewaterhouseCoopers’ Global Entertainment and Media Outlook report, the media and entertainment sector in China will see a 10.5% yearly growth in expenditure and income between 2015 and 2019. The growth rate is higher than the global average level. The report covers 13 industry segments in 54 countries and regions.
Alibaba-backed MYbank launched in eastern ChinaJun 26, 2015
MYbank, an internet lender backed by Alibaba Group Holding Ltd, was launched on 25 June in eastern China. It will mainly offer services to small enterprises and clients in rural areas. Alibaba's Ant Financial Services Group owns 30% of MYbank, which has a registered capital of Rmb4bn (USD644m). Ant Financial used to be a subsidiary of Alibaba. Alibaba chairman Jack Ma and his colleagues still own the firm.
Falling China demand forces Molycorp to file for bankruptcyJun 26, 2015
Molycorp Inc of the United States has filed for bankruptcy protection from creditors due to falling commodity prices and a pronounced decline in demand from China, its biggest customer. Molycorp is the only US mining firm that produces rare earth elements. It declared on 25 June that it has made a deal with creditors to restructure its USD1.7bn in debts while obtaining USD225m in new financing to be able to continue operating.
ICBC mulls joining London bullion fixJun 26, 2015
The Industrial & Commercial Bank of China Ltd may decide to take part in an auction that will set the price of gold in London. ICBC could do this by joining the London process directly or by way of its UK-based Standard Bank Plc subsidiary. Zhou Ming, general manager of ICBC's precious metals department, announced the news at the London Bullion Market Association Conference on 25 June in Shanghai. Last week, the Bank of China Ltd became the first China-based lender to join the 10 participants in the twice-daily held auction process.
Alibaba to acquire stake in India's Micromax for USD700mJun 26, 2015
Alibaba Group Holding Ltd, the China-based e-commerce giant, is scheduled to sign a deal with phonemaker Micromax of India to acquire a 25% stake in Micromax for around USD700m. According to a report in India's Economic Times, it will be the first time that a stake in an Indian phonemaker has been acquired by a foreign investor. The deal could also see SoftBank of Japan participate and could raise Micromax's value to USD5bn. India is the third biggest smartphone market worldwide.
China 'not planning' to keep veto power in AIIBJun 26, 2015An unnamed expert analyst reportedly said that China has no intention of maintaining veto power on vital decisions in the Asian Infrastructure Investment Bank. According to a report in the China Daily, the analyst was supposedly informed of the details of the AIIB's articles of association, which China's foreign ministry confirmed are scheduled to be formally signed on 29 June. The AIIB will start operations before the end of 2015. China is still the biggest shareholder in the AIIB with enough voting rights to block key decisions at the bank.
China seeks to boost its aviation industry with USD80.6bn investmentJun 25, 2015
The Chinese government is planning to invest Rmb500bn (USD80.6bn) this year in 193 domestic projects to enhance the country's aviation sector, said Li Jiaxiang, director of the Civil Aviation Administration of China. Li made his statement in an aviation forum in the Chinese capital of Beijing. Alhough Li didn't provide more details, he did say that construction in aviation infrastructure will be a priority in the cities and regions of Kunming, Nanning, Urumqi, Xi’an, and Xiamen over the next five years. The major aviation projects are intended to boost China’s economic growth and enhance the trade infrastructure in China and its Asian neighbours.
China's cabinet to scrap loan cap for commercial banksJun 25, 2015
The Chinese mainland's cabinet, called the State Council, is set to do away with a regulation that limits commercial bank loans to 75% of their deposits, in a move to boost the supply of cash in the country's financial network. The proposed amendment of China's banking rule will make the limit a ratio utilised for reference but not a regulatory decree. A structure will be put in place to oversee bank liquidity that is based on ratio. The rule amendment still has to get the approval of the Standing Committee of the National People's Congress.
US demands faster access to Chinese marketJun 25, 2015
US government executives pressured their Chinese counterparts in the third week of June to allow the United States greater access to its economic market. This is a reflection of increasing corporate worries that China’s assurance of an economic overhaul is more lip service than commitment. Cabinet members from both countries discussed the matter in Washington although not much progress was seen on many vital economic matters. Talks on a bilateral investment treaty (BIT) that started two years ago had created hope that big new business opportunities for both nations would be fulfilled. In 2013, China's president Xi Jinping delineated new economic policies that were supposed to allow market forces a more decisive role in China, the second-biggest economy worldwide.
China OKs move to curtail currency interventionsJun 25, 2015
The United States treasury secretary Jacob Lew has said that the government of the Chinese mainland has agreed to limit its currency interventions that can damage international exchange rates, the Wall Street Journal has reported. Lew’s announcement came on 24 June after top-level discussions with high government officials from China. China's commitment was made known during the yearly US-China Strategic and Economic Dialogue deals. China said it is willing to closely supervise the value of the Chinese currency the yuan, or renminbi.
China needs USD6.6tr to comply with greenhouse gas reduction goalsJun 25, 2015
Mainland China needs to spend over USD6.6tr to fulfill its goal of reducing greenhouse gas. Beijing will reveal at the end of June during the United Nations climate negotiations how it plans to go about cutting down on its carbon footprint, said Xie Zhenhua, China’s special representative for climate change affairs. Xie added that China's goals are rather ambitious. He was participating in a three-day Strategic and Economic Dialogue forum in the US capital of Washington DC, where he talked with his American counterparts, including Gina McCarthy, administrator of the Environmental Protection Agency, US climate negotiator Todd Stern, and the US energy secretary Ernest Moniz.
Alibaba invests in next Mission: Impossible filmJun 25, 2015
Alibaba Pictures Group Ltd, rich in cash, has taken its first step towards internationalisation by getting involved in its very first Hollywood blockbuster – the latest sequel of the Mission: Impossible franchise. Alibaba Group Holding Ltd's film subsidiary signed an agreement with Paramount Pictures to market the movie in mainland China. Alibaba Pictures, listed on the Hong Kong stock exchange, will work together with Paramount in online promotions, merchandising, and ticketing for the movie officially titled Mission: Impossible – Rogue Nation.
China leads global FDI inflow in 2014Jun 25, 2015
China became the world's largest recipient of foreign direct investment (FDI) in 2014 globally, cornering about USD129bn of the world's total FDI investments, the United Nations Conference on Trade and Development has said in its World Investment Report 2015. FDI in China in 2014 was 3.7% higher compared to the total in 2013, although FDI inflows to manufacturing declined. Globally, FDI inflows dropped to USD1.23tr last year, from USD1.47tr in 2013, the report showed. The global FDI is poised to grow 11% this year to USD1.4tr, pushed by higher investments by multinational organisations. It also forecast a further rise in FDI in 2016 to USD1.5tr and to USD1.7tr in 2017.
Hyundai and BAIC start building fifth car factory in ChinaJun 24, 2015
Hyundai Motor Co of South Korea revealed on 23 June that it has started to build its fifth car plant in China. The new factory, in the municipality of Chongqing, is intended to help the two firms get back the momentum they have lost in China, the biggest car market globally. Hyundai and BAIC will produce a new compact car and more sport-utility vehicles. Hyundai and fellow South Korean-based auto firm Kia Motors Corp are jointly no.5 in worldwide sales, but have struggled with falling sales in the Chinese mainland, in part because of the lack of new SUV models that can compete against their rivals’ new releases.
Airbus negotiating to sell 50-70 A330 jets to ChinaJun 24, 2015
French-based Airbus SAS is conducting negotiations to sell 50 to 70 A330 wide-body planes to mainland China, Xinhua has reported. It is part of the aircraft maker’s plan to build a new industrial plant in China, the fastest-growing aviation market worldwide. Airbus has been in talks over the matter for a year and a half now to set up an A330 cabin-completion hub in the Chinese mainland. It already has a final-assembly factory for smaller A320 planes in Tianjin City. China's premier Li Keqiang will visit Toulouse, the site of Airbus's headquarters, on 1 July and it is expected that the deal could be officially signed there.
7 Estee Lauder brands have prices slashedJun 24, 2015
The Estee Lauder Companies have announced price reductions for all seven of its brands beginning on 1 July, after the Chinese government said Beijing's announcement that it would decrease tariffs on imported cosmetics and skincare goods starting on 1 June. The giant US-based skincare and cosmetics firm will slash suggested retail prices on several of its best-selling products like Estee Lauder, La Mer, Origins, Clinique, Lab Series, MAC, and BOBBI BROWN. China's Ministry of Finance announced in May that tariffs for skincare products from abroad will be decreased from 5% to 2%.
SEC holds China-based trader's assets linked with QihooJun 24, 2015
The Securities and Exchange Commission of the United States was granted a court order to immobilise the assets of a trader based in mainland China for activity deemed suspicious while entering into a USD9bn acquisition offer for a US-listed Chinese internet firm in the second week of June. Haijian Luo, the CEO of the Chinese online firm purchased some USD700,000 of out-of-the-money call options before the buyout offer for Qihoo 360 Technology was announced.
Qualcomm and SMIC of China create JVJun 24, 2015
Qualcomm Inc of the United States has agreed to aid the largest semiconductor foundry in China enhance its technology. The Shanghai-based Foundry Semiconductor Manufacturing International Corp announced on 23 June that it would set up a joint venture with Qualcomm, chip research centre Imec of Belgium and Shenzhen's Huawei Technologies Co to produce advanced 14-nanometer chips. The Chinese government is investing billions into its semiconductor industry, seeking to cut down on its dependence on American technology for security and economic purposes. Suppliers from the US are trying to stay in the Chinese market by coming up with partnerships with domestic firms. Qualcomm and SMIC in 2014 cooperated on the production of 28-nanometer chips.