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.
Xiaomi plans USD300m investment in Baidu's iQiyiNov 20, 2014
Xiaomi, China's largest smartphone brand by market share, is investing up to USD300m in Baidu Inc's online video arm iQiyi.com. The investment makes Xiaomi the second-largest shareholder of the portal. Xiaomi, which has been tapping shows and movies to stream over its devices, said it would invest USD1bn in video content. Chen Tong, Xiaomi's vice president for content investment and content operation, said the investment in iQiyi is mainly for content.
China's manufacturing PMI drops to six-month lowNov 20, 2014
The HSBC preliminary purchasing managers' index (PMI) released on 20 November showed that China's manufacturing activity fell to a six-month low in November. From the October final reading of 50.4, the HSBC flash manufacturing PMI for November dropped to 50.0, the report said. A PMI reading of above 50 indicates expansion while a reading below means contraction. Aside from the drop in manufacturing PMI, the HSBC report also showed that China's manufacturing output index for November fell to 49.5 from 50.7 in October, a seven-month low. Qu Hongbin, HSBC's chief China economist said growth still faced significant downward pressure and the government needed to deploy more monetary and fiscal easing measures.
Volkswagen prepares for sales slowdown in ChinaNov 20, 2014
Germany's Volkswagen AG revealed that expects to see growth slow in mainland China to about 10% this year. Volkswagen China President Jochem Heizmaann said in Guangzhou ahead of the city’s annual auto show that the company had insufficient capacity and so its growth rate had fallen behind that of other foreign car firms in China. Heizmann added that his firm will deliver an estimated 3.6 million units in China before 2014 is over -- a 10% annual rise but short of 2013’s 16% growth.
China's outbound travelers may avail of UnionPay discountsNov 20, 2014UnionPay International of China announced on 19 November that it would offer discounts to holders of UnionPay cards who are traveling to specific tourist destinations. From November to 28 February, UnionPay cardholders can avail themselves of discounts up to a maximum of 15% should they use their UnionPay cards to pay for shopping, dining, hotels, and entertainment, among others, in 20 tourist cities including Paris,Rome, and Sydney.
Guizhou Province gets USD100m World Bank loanNov 20, 2014
The underdeveloped Guizhou Province in Southwest China is set to get a USD100m loan from the World Bank in the next five years intended for rural development. The funds will be used for infrastructure and public services, boosting the incomes of 440,000 residents spread throughout 11 counties. Beijing will give Rmb247m (USD40m) as its counterpart for the project.
World Internet Conference opens in WuzhenNov 20, 2014
The town of Wuzhen in Zhejiang Province is currently hosting the World Internet Conference, which coincides with the 20th anniversary of China's Internet connectivity. Among the guests are Chairman Jack Ma of Alibaba Inc, Baidu Chairman Robin Li, Tencent Chairman Ma Huateng, and executives from US-based Apple Inc and Qualcomm. Over 1,000 guests and some 600 local and foreign journalists are participating.
Malaysia mulls waiving visa fees for Chinese touristsNov 20, 2014
Malaysia is planning to waive visa fees for Chinese tourists starting January 2015 as part of the country's efforts to lure more Chinese travellers. The waiving of the visa fees is just one of the perks that Malaysia is offering to achieve its target of 29.4 million tourists in 2015. The number of Chinese tourists into Malaysia plunged following the MH370 plane crash on March 8. The plane was carrying 239 passengers, 153 of which were Chinese nationals.
Virtual commerce supports real economyNov 20, 2014
Premier Li Keqiang said that while the e-commerce industry is based in the virtual world, it supports the real economy. Li, who visited China's top e-commerce village, said e-commerce does not only support the real economy, it also gives equal opportunities to residents in rural and urban areas. The Chinese premier was in Qingyanliu village, the country's leading e-commerce village, located in Yiwu, Zhejiang province.
China's home prices fall may lure REITsNov 20, 2014
Real estate investment trusts (REITs) could start launching in China as the country's home prices start fall, said ChinaREITs Alliance secretary-general Wang Gang. Wang said the launch of REITs, which are popular in developed economies, has been deterred in China due to the country's high property prices. However, as the once red-hot property market has shown signs of cooling since early this year, Wang said it may be a good time to consider the new investment tool.
China to start capping coal consumptionNov 20, 2014
China will impose a cap on annual coal consumption of 4.2 billion metric tons by 2020 in an effort to cut carbon emissions, the State Council said in a statement. The Council also said that China plans to limit coal-bed methane output of 30 billion cubic meters by 2020. The headline figure was revealed within the State Council's energy development strategy plan (2014-20). The plan details moves to cut coal dependence from 67% to 62% and raise consumption of non-fossil fuels to more than 15%.
HK, Singapore top China investment destinations in AsiaNov 19, 2014
Hong Kong and Singapore are the most-preferred outbound destinations in Asia for mainland Chinese investors, said a report released by Cushman & Wakefield. From January 2008 to June 2014, China invested USD3.84bn into Hong Kong's real estate market. Singapore came in at second place with USD3.23bn of Chinese investment in the city-state's real estate industry. Chinese investors are drawn to strata-titled offices in Singapore. Globally, the United States was the top destination for Chinese real estate dollars, with 124 deals worth USD9.72bn from 2008 to June this year. The United Kingdom followed with USD5.8bn.
Australia appoints Bank of China as yuan clearing bankNov 19, 2014
The Australian Stock Exchange has appointed the Bank of China, the fourth-biggest lender in the country, as the official yuan clearing bank in Australia, following the signing of a landmark free trade deal between China and Australia. The expanded cooperation between the ASX and the Bank of China will further promote Sino-Australian trade and economic links and facilitates cross-border RMB investment and financing by business, said Bank of China Chairman Tian Guoli.
Hebei to outsource extra business to Southeast and West Asia, AfricaNov 19, 2014Hebei's provincial government revealed that it seeks to move excess capacity of its heavy industries to other countries by the year 2023. Hebei is the biggest steel-producing area in China. The Hebei provincial government added that it would offer preferential policies to persuade its steel firms to develop iron-ore mines and construct steel mills in Southeast and West Asia plus Africa.
China's ICT industry to increase steadilyNov 19, 2014
The International Data Corp said that the information and communication technology industry of mainland China will grow steadily in the next few years. IDC China Managing Director Kitty Fok said that the country's ICT market will grow at a rate of 7% annually from 2013 to 2020. Fok added that by 2020 revenue from the information technology market and telecommunication services will both reach USD300bn.
Feihe Dairy, Harvard's medical school put up joint nutrition-research centreNov 19, 2014Feihe Dairy of China and the Beth Israel Deaconess Medical Centre at Harvard Medical School launched on 18 November a joint laboratory dedicated to nutrition research. Feihe Dairy is one of the top baby-formula producers in China. Both parties will work together on related fields like paediatrics, neurology, microbiology, and digestion, said Dr. George Blackburn of the Division of Nutrition at Harvard Medical School.
Beijing relaxes control on ODINov 19, 2014
The government of China has decided to ease its control on outbound direct investment after local businesses have started to invest more overseas. The country's cabinet, the State Council, released on 18 November a much shorter list of ODI projects that still needs government approval. Analysts see this as China's way to encourage companies to enter the global market. Gu Dawei, an official of the National Development and Reform Commission, said that about 99% of investment projects on the previous list will now have to register only and don't need to go through tedious government procedures.
EHi Car Services of China debuts on NYSENov 19, 2014EHi Car Services Ltd, the top car-rental and services provider in China, had its shares listed on the New York Stock Exchange on 18 November. EHi's initial public offering of 10 million American depositary shares each represents two Class-A common shares selling for USD12 per ADS. The price is lower than the expected price of USD12-14 under the ticker symbol “EHIC”.
Orders at Shanghai-HK trading link fallNov 19, 2014Enthusiasm for shares of the Shanghai-Hong Kong Stock Connect programme, launched on 17 November, started to cool down the following day, as orders on both sides declined. Only 7% of the Hong Kong stocks' quota was utilised on Tuesday. It was at 17% on Monday. One-third of the USD2.1bn daily quota for Shanghai stocks was likewise used.
Russian social network VKontakte to enter ChinaNov 19, 2014
Russian social networking website VKontakte is set to open a marketing branch in Beijing, as Facebook continues to be banned in China.Vkontakte said it aims to bring Chinese advertisers on its platform instead of attracting individual users. VK, which is based in St. Petersburg, has about 250 million accounts and 4 billion daily page views. The Russian social networking site is the second notable Russian firm to announce major investment plans in China this month.
China plans Mars mission around 2020Nov 19, 2014
State media reported that Chinese scientists plan to launch a rover towards Mars around the year 2020. The government has not officially announced any plans for a Mars mission yet, but China Daily reported that officials from the China National Space Administration are pushing for the inclusion of such plan in the government agenda. A space expert from the China Academy of Space Technology told the state-owned news site that the planned Mars mission will include three steps - orbiting, landing and roaming.
China's foreign direct investment down 1.2%Nov 18, 2014
China's Ministry of Commerce said on Tuesday that the country attracted USD95.9bn in foreign direct investment (FDI) in the first ten months of the year, 1.2% lower from the same period of last year. The ministry said USD8.5bn worth of FDI was registered in October alone, 1.3% higher from October 2013. The service sector attracted USD53.12bn, 6.6% higher compared with the same ten months in 2013. The ministry's data also showed that the growth of FDI into the manufacturing sector in the January-October period declined 15.1% year-on-year to USD32.52bn.
Four Chinese firms in top ten list of world's most valuable Internet companiesNov 18, 2014
Even though California's Silicon Valley still rules over the Internet, four companies from China are among the top ten of the global giants in the industry. According to a report that New York-based financial information-provider S&P Capital IQ released, Alibaba Inc, with USD165bn in assets, is the most valuable Chinese Internet firm based on market capitalisation as of 15 September. The top ten global giants are, in order, Google, Facebook, Alibaba, Amazon.com, Tencent, Baidu, eBay, The Priceline Group, Yahoo and JD.com.
Chinese consumers look forward to better food products with Aussie-Chinese dealNov 18, 2014Consumers in China are excited at the prospect of getting more high-quality types of food in the supermarkets after the country signed a food deal with Australia on 17 November. Some 50 companies from China and Australia signed the agreement that will enhance investment in the latter's agricultural and livestock sectors. China's demand for better quality of beef, mutton, lamb, and dairy products has increased, said New Hope Group Chairman Liu Yonghao.
Three Chinese carmakers to recall faulty vehiclesNov 18, 2014
Three Chinese automakers - Chery Automobile, Brilliance Auto and Great Wall Motor - will recall more than 500,000 vehicles due to defective fuel pumps. The General Administration of Quality Supervision, Inspection and Quarantine said the recall involves 559,882 vehicles on mainland China that were manufactured by the three automakers between March 2005 and January 2014. The flaws could lead to gasoline leakage and potential danger.