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.
21 countries support China-led Asian infrastructure bankSep 29, 2014The China-initiated Asian Infrastructure Investment Bank (AIIB) has already gained the support of 21 countries, said Deputy Finance Minister Shi Yaobin. The AIIB, which seeks to gather at least 30 countries within and outside Asia as founding members, will focus on infrastructure construction in Asia to promote regional unity and economic cooperation. Shi made the announcement during a meeting with the representatives from South Korea, Thailand, Indonesia and Singapore to discuss the preparation for the AIIB. China's preparation team is headed by former Deputy Finance Minister and former Asian Development Bank Vice President Jin Liqun.
China lifts curbs on foreign investments in the FTZSep 29, 2014A State Council statement showed that the Shanghai Pilot Free Trade Zone will be temporarily exempted from restrictions on foreign investments for 27 businesses. The exemption includes shipping, automobile, civil aviation and infrastructure development. The statement also revealed that foreign investors can invest more than 51% in a JV shipping agency from the previous 49%. Since its launching in late September last year, the Shanghai FTZ has already attracted some 12,000 firms.
Shanghai court launches English websiteSep 29, 2014The court of the pilot free trade zone of Shanghai started an English version of its website (www.ftzcourt.gov.cn) on 28 September that provides access to court news and trial studies, among others. The court now has heard 335 cases since it was put up on 5 November 2013. Most cases, about 80%, were related to investment and trade. The rest were concerned with intellectual property rights and real estate.
Audi losing market leadership in ChinaSep 29, 2014Germany-based luxury-car maker Audi AG believes that its star in China has dimmed especially after being fined Rmb249m (USD40.62m) for price fixing. Analysts believe that even though Audi's fine is not that huge considering its market share, still its reputation has dealt a serious blow. For one, customers who had planned to purchase Audis have delayed in buying. An Audi dealer in China said that customers are waiting for Audi to further reduce its prices on vehicles and spare parts before buying. An estimated 269,000 Audis were sold in China from January to June this year for a 33.6% share of the market.
Shanghai FTZ gold board 'starts slow'Sep 29, 2014International board transactions have been minimal in comparison to other international peers a week after the Shanghai Gold Exchange began trading in the pilot Shanghai Free Trade Zone. Industry experts, however, said that it is still too early to tell if the board's operations will fail or succeed. The SGE's international board has allowed international investors for the first time to put in funds in the gold market of China, which is seen as part of the nation's attempts to open its financial markets and earn more control in the pricing of gold.
MOF to float USD4.92bn in e-saving bondsSep 29, 2014The Ministry of Finance made it known on 28 September that it would float two more batches of electronic savings bonds worth Rmb30bn (USD4.92bn) in October 2014. One batch will be worth Rmb18bn (USD2.9bn) with a term of three years and a fixed yearly interest rate of 5%. The other batch of five-year bonds will be worth Rmb12bn (USD1.96bn) and will have a fixed yearly interest rate of 5.41%.
CBRC okays two more private banksSep 29, 2014The China Banking Regulatory Commission, the nation's banking regulatory body, announced on 29 September that it approved two more private lenders: one in the city of Shanghai and another in Zhejiang Province. Two months ago, the CBRC approved three private banks which included Webank with the backing of China-based Internet firm Tencent. The two newly-approved private banks still have to come up with official English names. CBRC has given them six months to comply with all the regulations.
NBS says 12.3% of world's economy is in ChinaSep 29, 2014According to China's National Bureau of Statistics (NBS), the country's economy comprised an estimated 12.3% of the world total last year – with the GDP of China at Rmb56.9tr (USD9.32tr). GDP per capita was Rmb41,908 (USD6,840). In 1952, China's GDP was at a mere Rmb67.9bn (USD11.06bn). In 60 years, China's GDP grew 122 times with a yearly average increase of 8.2%. China's service sector has gone up impressively. In 1952, 51% of China's total economy was agriculture-based and the service sector took 28%. The industrial sector was at 21%.
16.77 million cars recalled in China within ten yearsSep 29, 2014Since the launching of a product recall mechanism in China in 2004, around 16.77 million vehicles have been recalled in the country due to defects and other concerns, data from the General Administration of Quality Supervision, Inspection and Quarantine showed. The country's quality watchdog said the recalls resulted to the economic losses of Chinese consumers worth more than Rmb20bn (USD3.25bn). China has been improving its recall mechanism to ensure the protection of Chinese automobile buyers. The China Association of Automobile Manufacturers has predicted that more than 24 million vehicles will be sold in the country this year, making China the world's largest auto market.
Nasdaq Dubai seeks more China bond listingsSep 29, 2014Nasdaq Dubai CEO Hamed Ali said the exchange is in talks with several Chinese companies about listing securities as it hopes to lure more bond listings from China. Nasdaq Dubai, which was set up nine years ago, has struggled to attract equity listings amid low volumes. Ali did not identify the companies, which include banks, but said that the exchange is pushing to add fixed income securities from China. Ali said Nasdaq Dubai is very positive about the prospects of further listings from China after the Agricultural Bank of China’s Rmb1bn (USD163m) bond became the first Chinese debt to be listed on the exchange.
Alibaba pays USD459m for stake in Chinese hotel IT firmSep 29, 2014Chinese e-commerce giant Alibaba Group Holding is reportedly paying about USD457m for a 15% stake in Beijing Shiji Information Technology, a Beijing-based firm that provides hotels with technology software and services. The deal was considered as a first for Alibaba following its record-breaking USD25bn IPO in the US. A stake in the hotel IT provider will boost Alibaba's travel-booking business called Taobao Travel.
Moody’s says China's residential home prices to remain under pressureSep 26, 2014
Residential home prices in China will remain under pressure over the next few months even as decline in total contract sales value has slowed, Moody’s Vice President and Senior Analyst Franco Leung said. The total contracted sales value of the residential property market is expected to decline 5% to 10% for the full year 2014. Moody's, in its latest monthly China Property Focus report, said the projected decline in contracted sales value, however, is less than the 10.9% year-on-year decline for the first eight months of the year. The ratings agency expects many of the 70 major Chinese cities to report month-on-month price declines over the next few months as price pressure is expected to increase. As of August, 19 Chinese cities have already recorded year-on-year price declines.
Tourism deficit to exceed USD100bnSep 26, 2014
China's tourism deficit this year is expected to surpass USD100bn as more Chinese travellers are expected to spend overseas, more than what foreign visitors are expected to spend in China, the China Tourism Academy (CTA) said. For 2014, about 116 million Chinese are expected to travel abroad and spend around USD155bn, said CTA President Dai Bin. Last year, Chinese tourists made 98.2 million trips abroad.
China's Conch, SDIC to put up cement factory in IndonesiaSep 26, 2014
Anhui Conch Cement Co and State Development and Investment Corp, both based in China, will invest on a cement factory in Indonesia's West Papua Province. The cement plant is expected to have a yearly production capacity of three million tonnes. Conch and SDIC will control a 49% and 51% stake, respectively, in the cement factory according to the deal they signed. China's President Xi Jinping visited Indonesia in October last year and the two countries signed investment contracts worth USD20bn involving more than 40 firms.
Airbus expects 4.7% Asian growth due to ChinaSep 26, 2014
Airbus, the European aerospace giant company, revealed on 25 September that it sees rapid growth in Asia's aircraft market because of a great demand especially in mainland China. According to its Global Market Forecast, Airbus' passenger traffic will go up 4.7% year-on-year from 2014 to 2033 with around 31,400 new passengers and freighter aircraft worth an estimated USD4.6tr.
GE's Shanghai HQ launchedSep 26, 2014
General Electric Co of the United States launched its Shanghai headquarters that will serve as the hub for its Asia-Pacific operations. According to the company, GE's Pudong New District Global Operations Centre, one of its five GOCs in the world, will simplify its business as it integrates services for 16 nations such as South Korea, Japan, and Australia. The Shanghai GOC will make use of Shanghai Free Trade Zone's trade policies, said GOC Chief Tu Ming.
China Eastern receives first delivery of Boeing 777-300ER jetsSep 26, 2014The US-based Boeing Co revealed that it made its first delivery of 20 777-300ER jet planes to China Eastern Airlines on 25 September. The jets will be deployed in November to New York and Los Angeles. China Eastern General Manager Liu Shaoyong said that the 20 777-300ERs will modernise their fleet and boost its competitive capabilities in its trans-Pacific routes.
Microsoft ready to cooperate with China's anti-monopoly probersSep 26, 2014Microsoft Corp's new CEO Satya Nadella announced on 25 September during his first trip to mainland China that the US-based firm is ready to cooperate with Chinese regulators regarding the latter's anti-monopoly investigations. Nadella added that Microsoft needs to trust Chinese regulators in order to boost its business in the biggest information-technology market in the world. He also said that Microsoft has greatly benefited from doing business in China and seeks to aid domestic enterprises that want to go global.
BOC trims China Q3 growth forecastSep 26, 2014
From a previous growth forecast of 7.4%, the Bank of China (BOC) said in a report that China's economy will have a 7.3% growth year-on-year in Q3 2014. The official economic data for the third quarter will be released on 21 October. BOC cited a string of unsatisfactory economic indicators in the past two months as among the reasons for the revised estimate. The BOC forecasts a 7.4% full year growth for the country.
Alibaba is China's most admired firm in 2014Sep 26, 2014
Fortune China has released its 50 Most Admired Companies in 2014 that ranked Alibaba Group on the top spot for the third time. Alibaba, which ranked first in 2013 and 2011, was followed by Baidu and Huawei technologies. Fortune China said the ranking was based on nine criteria - management quality, quality of product or service, innovation, and ability to attract, develop and retain workers.
China's commercial banks report USD20.53tr combined assetsSep 26, 2014The China Banking Regulatory Commission said the combined assets of commercial banks in the country rose 14.7% from a year earlier to Rmb126.27tr (USD20.53tr) by the end of August. The banking regulator also said that assets of state-owned commercial banks continue to dominate the banking industry, accounting for 40.7% as of end of August. The share, however, is 0.2% lower from July. The rest of the shares are divided among joint-stock commercial banks (18.6%), smaller city-level commercial banks (10.3%), and other financial institutions (30.4%).
For the first time in 14 years, steel demand dropsSep 26, 2014
Crude steel consumption in China dropped 1.9% year-on-year to 61.9 million tonnes in August, the first drop since 2000, China Iron and Steel Association Vice Chairman Wang Xiaoqi said. For the January to August period, the country's steel consumption fell 0.3% to 500 million tonnes, he said. Wang cited the slower economic growth as one of the main factors of the steel consumption drop in the country.
ADB keeps China growth forecast unchanged for 2014, 2015Sep 25, 2014
The Asian Development Bank said its China growth forecast for 2014 and 2015 remains unchanged at 7.5% and 7.4%, respectively. The Manila-based lender said China's economic stimulus and the rising external and internal demand will contain the impact of a shrinking workforce and a sluggish property sector. For Southeast Asia, ADB trimmed its growth forecast to 4.6% from 4.7% in July.
Shanghai is world's tenth most expensive citySep 25, 2014
Shanghai went up to tenth place this year from 11th in 2008 in the world's most expensive cities list released by real estate company Savills. The combined cost of renting a living or working space for a single person now costs USD43,171 per year in Shanghai, Savills said. Hong Kong is now the second most expensive city after being overtaken by London. The Savills survey takes account of rents, related real estate costs such as taxes, and changes in exchange rates.