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.
Express delivery market posts massive growthMay 1, 2015
China's booming e-commerce market has also triggered the massive growth of the country's express delivery services, data released by the State Post Bureau (SPB) showed. The SPB reported that the number of packages transported by express delivery in China grew 820% last year, accounting for about 63.9% of the movement of total post in the country. Private couriers made up the majority of China's express delivery players, taking up 85.6% of the express delivery market. Private firms made Rmb154.1bn (USD25.2bn) in revenues in 2014.
China non-manufacturing PMI keeps fallingMay 1, 2015
The April service-industry of mainland China has kept growing albeit at a slower rate, according to a report that the National Bureau of Statistics and China Federation of Logistics and Purchasing released together on 1 May. The purchasing managers' index or PMI for the country's non-manufacturing industry declined to 53.4 in the month of April from 53.7 in March. It was at 53.9 in February. A reading of 50 above is indicative of expansion; a reading below that number means contraction.
21st Century Business Herald site shut down in ChinaMay 1, 2015
The Chinese government closed down the website of the 21st Century Business Herald pending investigation on alleged extortion. The country's media regulator ordered 21st Century to suspend operations starting 30 April. At 5 PM, the website had been taken down and viewers were directed to a so-called network error page. The website was likewise ordered to reinforce its editorial management. The Xinhua news agency mentioned previous allegations that 21st Century was involved in extortion. It was founded in the year 2001, some time before economic growth rates in China started to zoom up to double digits. At its peak, 21st Century had an estimated print readership of 750,000.
ZTE focuses on Japan to sell 60 million smartphones worldwideMay 1, 2015
China's ZTE Corp seeks to boost sales in the Asia-Pacific region most especially in Japan to help it reach its goal of selling 60 million units of its smartphones this year. According to ZTE, international sales this year will hopefully be 25% more than that of 2014. In the Asia-Pacific alone, ZTE wants to sell 10 million units basically in Japan. ZTE mobile-phones division CEO Zeng Xuezhong said that they hope Japan will be its next sales-growth engine next to China and the United States.
Chinese-Malay halal food lab JV created in GansuMay 1, 2015
A halal food laboratory utilising Chinese and Malaysian capital and resources was launched in Gansu Province in China. The Ministry of Science and Technology of China along with Malaysian backing will have the provincial government of Gansu Province implementing the joint venture. Gansu has a considerable Muslim population and the province's location, culture, trade, science and technology are believed to make it the ideal region to host the project. The JV will focus on the biological material, research and certification in order to come up with halal food that passes international standards.
EU conducts anti-dumping investigation into Chinese-made steel barsMay 1, 2015China's Ministry of Commerce announced that the European Commission issued a notice on a probe it is conducting regarding alleged anti-dumping on high-fatigue performance steel-concrete reinforcement bars imported from the Chinese mainland. The ministry added that this is the very first anti-dumping investigation of its kind by the EU on Chinese-made goods. The European Steel Association filed a complaint on 17 March 2015 for the sake of producers comprising over 25% of overall EU production of high-fatigue performance-steel concrete reinforcement bars. The EU intends to conduct its probe for 15 months.
China begins deposit insurance schemeMay 1, 2015
China starts its deposit insurance this month, providing banking customers with financial indemnity should their bank suffer bankruptcy or insolvency. The new deposit insurance scheme takes effect from 1 May. The new insurance scheme covers 99.63% of Chinese depositors with both RMB and foreign currency deposits. It also covers individuals and companies, the regulation said. Under the new insurance deposit law, customers are entitled to up to Rmb500,000 (USD81,783) in insurance. For depositors with more than Rmb500,000 worth of deposits, they will receive indemnity with the bank's own assets.
Taiwan's Hua Nan Bank opens Fuzhou branchMay 1, 2015
Taiwan's Hua Nan Commercial Bank is set to offer a full range of Chinese yuan-denominated banking services, such as deposits, loans and remittances after it received permit from China's financial authorities for the opening of its Fuzhou branch. The branch is expected to begin operations on 13 May and Hua Nan Commercial Bank, a banking arm of Taiwan-based Hua Nan Financial Holding Co, said it will use the branch as a base to extend its reach in the booming Fujian province. Many Taiwanese-invested businesses are concentrated in Fujian and along China's southeast coast.
China's facial mask market to hit USD2bn by 2019May 1, 2015
More Chinese women are spending money to maintain their beauty, a recent study by UK-based market research firm Mintel showed. The study revealed that Women in China spent Rmb6.5bn (USD1bn) on cosmetic facial masks in 2014, 20% higher from a year ago. The figure is even expected to grow as Mintel said China's market for facial masks is expected to reach Rmb13bn (USD2bn) by 2019. China takes up about 15% of the total facial mask market in the Asia-Pacific region. The region’s facial market is headed by South Korea.
China's broadband sector now open to private investorsMay 1, 2015
China has opened its broadband market to private investors in order to stir competition that would cut costs to consumers. The Ministry of Industry and Information Technology (MIIT) will now allow private businesses to invest money to the country's broadband sector, hoping that the move will encourage companies to build shared platforms and reduce operating fees. Experts said the move will not only cut costs to consumers but will also further address the growing demand for fast and efficient broadband service in China, the world's largest internet user. Details of the planned private investment into broadband will be released by the MIIT soon.
China tops US, Canada as biggest foreign investor in AustraliaApr 30, 2015
Chinese investors poured USD27bn worth of investments into Australia last year, making it the top source of foreign investments in the country. China has overtaken the United States and Canada, which invested USD17.5bn and USD15.4bn respectively last year, the Foreign Investment Review Board's 2013-2014 annual report showed. The report did not give a breakdown of China's investment but sources said Australian property was the top investment choice for Chinese investors. Overall, foreign investment into Australia rose by 23.4% in 2014 to USD167.4bn.
Number of investors in China could reach 15.3 million this yearApr 30, 2015
Chinese citizens that have investable assets from USD100,000 to USD1m could rise 10.1% from a year ago to 15.3 million by 2015, according to the 2015 Chinese Mass Affluent Report. Forbes China and CreditEase had put together the report and released on 29 April. Overall private investable capital by this group increased 12.8% to Rmb106.2tr (USD17.1tr) in 2014 and possibly hit Rmb114.5tr (USD18.47tr) before the year closes.
Vale and Chinese firms negotiating to build 50 bulk carriersApr 30, 2015
The largest iron producer in the world, Vale SA of Brazil, is discussing matters with several Chinese shipbuilders and leasing firms for the construction of 50 giant bulk carriers to be used in transporting iron ore from the South American country to mainland China. A Vale spokesperson denied reports but other sources said that China Cosco Holdings Co could build about 20 of the sea vessels, while China Merchants Energy Shipping Co, ICBC International Leasing Ltd and Shandong Shipping Corp could construct 10 vessels each.
Fosun plans development in ManhattanApr 30, 2015
Fosun Group of China announced on 30 April that it might develop a luxury condominium in the New York borough of Manhattan for its second property project in the financial capital of the United States. The Shanghai-based Fosun added that its subsidiary, Fosun Property, will work on a 47-story residential tower along 126 Madison Ave with the cooperation of JD Carlisle LLC. The costs of the project were not disclosed. Fosun however divulged that the planned residential tower is designed to draw in domestic and foreign buyers.
Tencent acquires 14.6% stake in Glu Mobile for USD126mApr 30, 2015
China-based Tencent Holdings Ltd bought a minority stake of 14.6% in US-based Glu Mobile for USD126m. Glu is the maker of the video games "Kim Kardashian: Hollywood" and "Contract Killer," among others. Shenzhen's Tencent runs social networking services online like instant-messaging QQ and mobile-messaging WeChat. Glu Chairman and CEO Niccolo de Masi confirmed Tencent's investment and said that they are excited about entering into a strategic relationship with the biggest Internet firm in Asia.
China beats US as top iOS-downloads nationApr 30, 2015
The iOS quarterly downloads in China rose 90% from Q1 of last year to Q1 of this year, as the country exceeded iOS downloads in the United States, making China the top nation in iOS downloads. According to California-based mobile-analytics firm App Annie, download growth means gains in iOS App Store revenue. The US only had a 30% increase in iOS downloads, while Japan had a 50% rise. Senior Vice-President Danielle Levitas of App Annie said during the Global Mobile Internet Conference in Beijing on 29 April that China's iOS growth was faster to narrow the gap.
Alibaba on hiring freeze with 30,000 workersApr 30, 2015
Chinese e-commerce giant Alibaba has decided to put off hiring this year after its workforce has reached 30,000. Alibaba Chairman Jack Ma said the company's current labor force is enough to maintain operations and meet the demands of two billion consumers by 2019. Alibaba said it will only hire people when someone from the company leaves his job. The hiring freeze comes even as Alibaba plans to expand in overseas mobile internet markets. Alibaba recently released a new PC-based Internet browser that targeted users in India and Indonesia.
Air China starts direct Beijing-Minsk flightApr 30, 2015
Air China, China's flag carrier, announced it will launch its first direct flight from Beijing to Minsk in Belarus starting 1 May. Air China will fly direct to Minsk four times a week and will go straight to Budapest in Hungary. The return flight will be direct from Budapest, the airline said. Details about the flight, including the airplane that will be used in the direct trips, were not disclosed yet. The direct flight to Minsk in Belarus is in line with the Chinese government's Belt and Road Initiative, Air China said. In April, Air China, increased flights between Beijing and Milan and announced adding more flights on the Beijing-Paris route starting 1 June.
Intel to continue expanding in China despite US banApr 30, 2015
Despite a US ban on selling high-end technology to China, Intel Corporation continues with its planned expansion in the country. Recently, the US chipmaker launched its first Intel Parallel Computing Center (IPCC) in China in collaboration with the Chinese Academy of Sciences (CAS). Intel did not comment on the US Denial List that forbids sale of any high-end technology from the United States but said that it will continue to serve its high-performance computing clients in China, through CAS, which it describes as a prominent science and technology institution. The IPCC in China will help develop projects used extensively by scientists around the globe.
More young Chinese betting on stocksApr 30, 2015
The China Securities Depository and Clearing Co released new data that showed a number of well-educated yet inexperienced young Chinese are now buying stocks. The data showed that about 62% of the almost eight million new stock accounts that opened in Q1 of this year were taken by new investors in their late twenties or early thirties. The number of young Chinese investors raised new stock accounts by 433% this year, the data added. Noting the substantial fluctuation that the market is experiencing, market regulators warn individual investors to be fully conscious about their investments and the risk involved in short-term investments.
Survey ranks China as one of worst markets to invest inApr 29, 2015
A Bloomberg survey of financial professionals found that China, Russia and Brazil are now considered as markets to avoid over the next 12 months. Almost three in five respondents to Bloomberg Markets Global Poll depicted China's economy as deteriorating, its worst performance since September 2012. The latest survey also showed that Europe is now considered as the best place to invest for the first time since 2009, unseating the US, which has been top choice since November 2010. About 35% of those surveyed said Europe would be offering investors the best opportunities over the next 12 months while only 33% picked the US. Among the respondents, European investors were more optimistic than those in the US and Asia about their respective economies, the survey showed.
Wal-Mart plans to open 115 new outlets in ChinaApr 29, 2015
US-based Wal-Mart Stores Inc has revealed plans to add 115 new stores all over mainland China by the year 2017. Wal-Mart added that this means over 30,000 jobs will be created in China. In a previous statement, Wal-Mart had said it sought to operate 480 stores in the country by next year. It currently runs 400 stores in China. The retail giant also will invest Rmb370m (USD59.6m) to refurbish its old stores in 2015.
China's consumer services make up for 67% of all investments in VCApr 29, 2015
Venture-capital companies kept putting money into mainland China's economy in Q1 of this year with the consumer-services industry getting the most attention. Eight of the top 10 deals so far this year were in consumer services which constitutes 67% of the total investment, hitting USD6.53bn in Q1. This is down from the record-breaking USD6.86bn that was spent in Q4 of last year in this sector, according to VentureSource's data.
China's Mobile Internet to exceed that of US this yearApr 29, 2015
Mobile-Internet revenue from mainland China will outdo that of the United States of America and become the biggest in the world this year. At the same time, as the popularity of 4G smartphones increases, Internet speed will have to improve alongside it, according to discussions at the Global Mobile Internet Conference in Beijing. The country's mobile Internet revenue was at USD1.8tr last year and is expected to keep rising to and so overtake that of the US for the first time. Huai Jinpeng of the Ministry of Industry and Information Technology said that he was confident that this would occur even though he did not disclose specific figures.