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.
China injects USD81bn to five biggest banksSep 17, 2014
The People's Bank of China (PBOC), the country’s central bank, is injecting Rmb500bn (USD81bn) into five major state-owned banks as part of a series of expected stimulus measures by Beijing to boost economic growth. The PBOC will put in Rmb100bn each into Industrial & Commercial Bank of China Ltd, China Construction Bank Corp, Agricultural Bank of China Ltd, Bank of China Ltd and Bank of Communications Co through the central bank's standard lending facility. Economists said the move underlines the government's determination to support the economy even to the point of using broad-based stimulus that may exacerbate the country's mounting debt. The move was announced following weaker-than-expected economic data in August.
China seen to boost gold reservesSep 17, 2014The Official Monetary and Financial Institution Forum, a London-based researcher, said China could increase its gold reserve over time to be at par with developed nations. China's boosting of gold reserves is expected because the central government has not announced any changes to the country's gold reserve since 2009, when authorities announced that China holds a total of 1,054.1 tonnes of gold. China holds only 1.1% of the world's total bullion reserve, compared with about 70% for the US and Germany.
Chile to become China's main importer of food products in ten yearsSep 17, 2014
Chilean Ambassador to China Jorge Heine wrote in the Chilean daily El Mercurio's blogs section that the Asian nation will become his country's main importer of food products in a decade. Only the United States rivals Chile in exporting food products to mainland China. A Chilean delegation of private producers, led by Agriculture Minister Carlos Furche, visited China this month to underscore China's interest in Chile's food products, Heine wrote. He added that China is currently Chile's chief trading partner, with Chile’s exports to China registering USD19bn last year.
NDRC calls Toyota execs to a meetingSep 17, 2014
China's National Development and Reform Commission has requested Japan-based Toyota Motor Corp's officials in the country to discuss their pricing policies and spare and replacement parts policies specifically on its Lexus division. The Chinese price-regulatory agency's request coincides with the penalties on foreign-based car companies for price-fixing. Volkswagen AG of Germany and the China sales unit of Italy's Fiat's Chrysler division received the fines.
EU ambassador to China says there's not enough proof of China's protectionismSep 17, 2014
Hans Dietmar Schweisgut, the new European Union ambassador to mainland China, declared that it is too early to say that the government of the world's second-biggest economy is gunning after foreign firms in its anti-monopoly probes based on a few cases. Schweisgut made his statement on 16 September during his initial news conference since his arrival in Beijing. He added that it is senseless for China to frighten away investments from abroad when it is in need for a transition to a more balanced economy.
Shanghai Gold Exchange to be launched earlier than scheduledSep 17, 2014
The state-controlled Shanghai Gold Exchange will be launched on 18 September, 11 days ahead of its original schedule. It will serve as the global gold bourse in the Shanghai Free Trade Zone while creating an Asian-bullion standard. Singapore has put off its own gold-exchange launch because of technical problems. Asia has two of the biggest gold buyers in the world - China and India. There has been a demand for the region to have more say in the pricing of the precious metal, challenging New York and London's trading dominance.
North Korean leader Kim Jong Un might visit ChinaSep 17, 2014China's ambassador to South Korea Qiu Guohong said North Korean leader Kim Jong Un might visit China in the future, becoming his first foreign trip since taking power in 2011. Interviewed by South Korea's Yonhap news agency, Qiu said a visit from Kim Jong Un might materialise sometime in the future as China and North Korea maintain a normal relationship. China's leader, President Xi Jinping, has not visited North Korea but had gone to South Korea last July.
Jack Ma has no plans of moving to HK yetSep 17, 2014Jack Ma, the chairman of China's e-commerce giant Alibaba Group Holding Ltd, has not immigrated to Hong Kong and has no plans of doing so as of yet, the company said in a statement. Alibaba issued the statement to dispel online rumors that Ma has already moved to Hong Kong through investment immigration. In the announcement, Alibaba said Ma lives in Hangzhou, Zhejiang province, with his hukou registered there. Ma is a citizen of the Chinese mainland, Alibaba added.
Exchange link to boost China demand for HK stocksSep 17, 2014Demand for casino and technology shares listed in Hong Kong from Chinese investors is expected to rise when the planned exchange link between Shanghai and Hong Kong pushes through, Goldman Sachs Group Inc predicted. Casino and technology shares are not available in Shanghai and Goldman said both Galaxy Entertainment Group and Tencent Holdings stand to benefit from the link, which gives wealthy mainland investors access to 266 stocks traded in Hong Kong. Under the link with Hong Kong, which is scheduled to begin in October, mainland investors with at least Rmb500,000 (USD81,000) in their stock accounts will gain access to stocks traded on the Hang Seng Composite large and midcap indexes.
Online food delivery firm Daojia gets USD50m investmentSep 17, 2014
Chinese online food delivery operator Daojia, formerly called Beijing Shishang Renjia Networks Technology, received a USD50m round of investment from JD.com and Macquarie Capital. Daojia said it will use the investment to boost its technology systems and to expand its reach to up to 30 cities around China by next year. Analysts said the latest round of investment underlines JD.com's quest to tap into the online-to-offline market in China.
Shanghai's CPI growth slows downSep 16, 2014The inflation rate of Shanghai dropped in August as retail sales weakened, according to the Shanghai Statistics Bureau on 15 September. The mega city’s Consumer Price Index went up 2.6% year-on-year in August -- a 3% decline compared to July's, the statistics office added. Retail sales were boosted to 10.6% to Rmb74.7bn (USD12.2bn) in August. In July it rose 10.9%. From January to August, Shanghai's retail sales increased 8.4%.
Alibaba ups projected price range for IPO to USD66-68 per shareSep 16, 2014
China's Alibaba Group Holding Ltd has increased its price-range deal to USD66-68 for each share, from USD60-66. The Chinese e-commerce giant though did not raise the number of shares it will sell. At its peak, the deal will initially make USD21.8bn and potentially push it to USD25bn if banks underwriting the deal use an option to purchase more stocks.
China 'to boost' investments in IndiaSep 16, 2014
China President Xi Jinping is expected to pledge billions of US dollars in investments for its immediate neighbor India on the third week of September. This, as China seeks to gain influence as the balance of power in Asia shifts. During his three-day official visit to India, Xi will meet Prime Minister Narendra Modi and discuss how his country will invest on bullet trains and industrial parks among others.
High FTZ official firedSep 16, 2014
The China (Shanghai) Pilot Free Trade Zone is looking for another deputy chief of its management committee after Dai Haibo was relieved of his duties reportedly due to disciplinary violations. According to the Xinhua News Agency, Dai, 52, will still keep his post as the Shanghai Municipal Government's deputy secretary-general. No other details were given on the matter. Dai was the deputy chief of the Shanghai FTZ since September 2013.
China FDI keeps fallingSep 16, 2014Foreign direct investment in mainland China maintained its decline in August, falling 14% year-on-year to USD7.2bn, according to the country's Ministry of Commerce on 16 September. In July, the drop was at 17%. Analysts believe investors are getting more cautious due to the slowdown in China's economy, the second biggest in the world. From January to August, China's FDI was at USD78.34bn - a 1.8% fall year-on-year.
Jinzhouwan Int'l to be the biggest offshore airport in the worldSep 16, 2014A new airport, the Jinzhouwan International Airport, is being built on a reclaimed land off the shore of Dalian city in mainland China's Liaoning Province. At a cost of Rmb26.3bn (USD4.3bn), the airport is being constructed on about 21 sq km of land that will make it the biggest offshore airport globally. The project was announced two years ago with land reclamation beginning in 2011.
China, Malaysia sign sister port partnershipSep 16, 2014
The Qinzhou Port in south China's Guangxi Zhuan Autonomous Region has become a sister port of Kuantan, a port city in Malaysia, after China and Malaysia signed an agreement as part of their goal to revive the ancient maritime Silk Road. The two ports will cooperate in various fields including shared shipping lines, logistics, information exchange and talent training, said Li Xinyuan, Qinzhou City mayor.
China's agri fund to invest USD2.7bn in AustraliaSep 16, 2014
Chinese investments in Australia's agriculture industry is set to further boom as the state-owned Beijing Agricultural Investment Fund said it will invest up to USD2.7bn on Australian dairy, beef, lamb and aquaculture sectors. With the investment, a joint venture company, the Beijing Australia Resource Cooperative Development Fund, was created. The fund is also keen to produce and export powdered infant milk formula to China.
Chinese firm to build fertilizer factory in JordanSep 16, 2014
China's Chongqing Minmetal and Machinery Import and Export Co Ltd is set to build a USD350m fertilizers factory in Aqaba, Jordan. Chongqing Minmetal signed a deal with Jordan Phosphate Mines Co for the construction of the factory that will focus on producing high added value products from raw phosphate available in Jordan. The factory will help boost the trade ties between Jordan and China, Jordan's Minister of Industry and Trade Hatem Halawani said.
Morgan Stanley's China investment banking head quitsSep 16, 2014
A spokesman for US bank Morgan Stanley has confirmed that Alex To, its investment banking chairman for China, is leaving the firm. Sources said To is leaving the bank to reportedly join rival firm, Bank of America, in a similar role. The spokesman did not provide further details about To's exit while To refused to comment. To joined Morgan Stanley in 2006 and focussed on clients in the consumer and retail industries in China. Morgan Stanley ranked second in the advising on mergers involving a Chinese company this year while Bank of America was 12th, according to data compiled by Bloomberg.
Revenue of China's stem cell firms to hit USD4.88bn in 2015Sep 16, 2014As China's stem cell industry is forecast to rapidly grow in the years ahead, the 100 companies engaged in stem cell research and development are expected to hit sales revenue of Rmb30bn (USD4.88bn) by next year, insiders said. Experts predicted that the country's stem cell industry will further grow as the government is set to issue more preferential policies to support the industry's development. North America and Western Europe are the most competitive markets in the industry. The global market value of the stem cell industry exceeded USD40bn in 2013.
Industrial output hits six-year lowSep 15, 2014China's industrial production growth slowed to its lowest level since the 2008 global financial crisis, sending regional stock markets to hit its lowest in five weeks. Value-added industrial output grew by 6.9% year-on-year in August, down from the 9% in July, the National Bureau of Statistics reported. The batch of weak data caused investors to worry of a slowdown in the world's second-largest economy. The weak economic data, including the news that August electricity output fell 2.2%, suggest that earlier government stimulus measures lack staying power.
Property investment rose 13.2% in eight monthsSep 15, 2014
The National Bureau of Statistics (NBS) said real estate investment in the country went up 13.2% from January to August of this year, from a year ago. The NBS said a total of Rmb5.9tr (USD960bn) was invested in real estate during the said period, with residential property accounting for 68.1% of the total. Also, out of 70 major Chinese cities, 64 saw month-on-month price declines for new homes in July, compared with 55 in June, according to the latest official data.
HK's Keck Seng buys Manhattan's Sofitel Hotel for USD272mSep 15, 2014
Hong Kong-listed realty-firm Keck Seng Investments Ltd purchased the Sofitel Hotel located in Midtown Manhattan for USD272m, according to Accor, the French-based hotel firm that controls a stake in the hotel and the Sofitel brand. Sofitel is the hotel where a chambermaid accused International Monetary Fund Chief Dominique Strauss-Kahn of sexually harassing her. Strauss-Kahn's French presidential ambitions were ruined as a result. Even though the case was dismissed, the Frenchman settled with his accuser outside of court.