58.com files for US IPOOct 1, 2013
China'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.
2 Mainland China universities among world's top 50Mar 7, 2014
Mainland China has two universities included in the World Reputation Rankings 2014 published by Times Higher Education. Tsinghua University slipped one place to 36th while Peking University climbed four places to 41st in this year's list. Phil Baty, editor of Times Higher Education Rankings, said the country has institutions among the very best. This year's list is still dominated by Harvard University, followed by Massachusetts Institute of Technology, Stanford University and University of Cambridge. Compiled by Thomson Reuters, the World Reputation Rankings 2014 are based on responses from about 10,500 leading peer-reviewed academics in 133 countries, who were asked to nominate up to 15 of the best institutions in their field of expertise.
Government will not legalize casino gambling on Hainan islandMar 7, 2014
Senior Chinese officials said casinos will not be allowed in the country's holiday island, dousing off expectations that the government could liberalize gambling on Hainan. Wang Yong, the mayor of resort city Sanya, told Hainan's Communist Party Chief Lou Baoming during the annual parliamentary meeting that casinos will never be allowed to operate on Hainan. The island is just an hour's flight from Macau, where casino gambling is allowed. Hainan has attracted scores of international developers in the past two years, including InterContinental Hotels Group PLC, Starwood Hotels & Resorts Worldwide Inc, and casino operators MGM Resorts International and Caesars Entertainment.
China Logistics pursues M&A deals to keep growthMar 7, 2014
China Logistics Group, an international freight forwarder and logistics management firm, has announced that the company sees opportunity for expansion through potential acquisitions or mergers in fiscal 2014. The company sees the potential to further accelerate its growth through strategic acquisition to reach greater economies of scale. The company also said it will further expand its shipping volumes for its South American route out of Shanghai this year as trade between China and Latin America has been increasing over the past five years. The increase is largely due to strong economic growth in countries like Brazil and Argentina.
Alibaba set to put up China’s first internet bankMar 7, 2014
Hangzhou-based Alibaba Group could be the first-ever Chinese internet firm to create an internet bank. As many as five private companies in the country could acquire private-bank licenses to do the same. Alibaba might establish an Internet-based lender, one of the two private lenders in Zhejiang Province. The other private lender will be managed by over ten private firms from Wenzhou City.
China to remain one of world’s biggest FDI playersMar 7, 2014
The European branch of Dagong Global Credit Rating Co Ltd, Dagong Europe, came out with a report called "China's Investments – Refocus on Europe", which said that China will still keep its position as one of the world’s biggest foreign direct investors this year. Richard Miratsky, the head of corporates analytical team of Dagong Europe, said that the country’s massive foreign-exchange reserves are fueling its impressive foreign investments.
Ford to invest additional USD100m in Chinese R&D plantMar 7, 2014
Ford Motor Co said it will invest an additional USD100m to double its research and engineering capabilities in China in the next few years. Part of the plan is to increase the number of employees at its research and engineering center in Nanjing to 2,000 by 2018. A Wall Street Journal report said the research and engineering center will soon have a new test track that will allow its Chinese team to play a large role in global vehicle product development. Ford has already invested more than USD200m on its research and engineering operations in Nanjing, which was launched in 2005.
IBM China workers continue strike as Lenovo transfer deal loomsMar 7, 2014
Hundreds of employees at the US-based IBM Systems Technology Co plant in Shenzhen City held a strike for the fourth straight day, as International Business Machines Corp was getting ready to transfer its computer-server plant to China’s Lenovo Group Ltd. Factory workers have alleged that IBM is not offering enough severance for those who chose to leave. Others who would rather stay are saying that their salaries might decline.
L'Oreal’s China sales hit USD21.69bn in 2013Mar 7, 2014
L'Oreal China announced that its sales in China reached Rmb132.8bn (USD21.69bn) last year – a 10.2% year-on-year increase and the 13th straight year of a double-digit rise. L’Oreal’s third-biggest market is now China, which the company predicts will become its biggest market by the year 2025. The French-based beauty-products firm expanded its Yichang Tianmen factory in Hubei Province last year.
Chaori Solar: No government bailout but we can only pay part of debtMar 7, 2014
Shanghai Chaori Solar Energy Science & Technology Co revealed that the local government is not offering them a bailout and that they can only repay a small portion of the interest on its debt that was issued about two years back. Shanghai Chaori could become China’s first bond default. Board Secretary Liu Tielong said that the Shanghai government did not make any assurances to help the company out and is handling its debt crisis following market regulations. The firm owes Rmb89.8m (USD14.6m) on its Rmb1bn (USD160m) product payable on 7 March.
Shanghai firm gets approval to buy bad loans from local banksMar 7, 2014
Shanghai State-owned Assets Operation Co, a city-owned investment company, has received approval from the Shanghai local government to buy non-performing loans from local banks. Instead of creating a new entity, the local government allowed the state-owned firm to purchase bad loans and other assets from local financial institutions. Experts said the move shows that Shanghai is bracing for an expected rise in bad debt. The company already owns equity in local banks including Bank of Shanghai, Shanghai Rural Commercial Bank and the brokerage Guotai Junan Securities.
China's shadow banking sector well under control says expertMar 7, 2014
The former Chairman of Industrial and Commercial Bank of China, Yang Kaisheng, said China's shadow banking offers no cause for alarm because the said sector is well under control. Yang said the total amount of China's shadow banking is not a big number compared with those in some developed countries. A member of the Chinese People's Political Consultative Conference, Yang said the country's shadow banking sector only accounted for about 10% of the GDP while the figure in the United States was 150%. He also added that the liquidity in China's banking sector remains healthy, based on several key indicators in the regulatory framework.
China to remain world's second-largest economy this yearMar 6, 2014
If this year's economic growth target is achieved, China's GDP could top Rmb61.1tr (USD10tr) by the end of 2014, keeping the country's reputation as the world's second-largest economy, analysts said. The projection was made after the government has put the growth target at around 7.5% for this year. Last year, the United States was considered as the world's largest economy with GDP of USD16.2tr, followed by China with USD9tr. Finance Minister Lou Jiwei, however, called for more comprehensive understanding on the country's growth target this year instead of merely fixating on the 7.5% figure. Lou stressed that GDP growth, inflation and employment are all key factors that should be taken into consideration when assessing economic conditions.
Lamborghini considers China a key marketMar 6, 2014
Italian luxury sports car manufacturer Lamborghini considers China as a key market for the company and sees the country's super sports cars market growing in the next few years. Lamborghini CEO and President Stephan Winkelmann said China is the company's second largest market, and he would like to cement that position for the years to come. To boost its presence in China, Winkelmann said the company will improve cooperation with dealers and partners in order to always have new products to sell in the country.
China’s president encourages Shanghai government to take chances in FTZMar 6, 2014
China President Xi Jinping prodded the government of Shanghai to be more confident in handling the Shanghai free trade zone (FTZ). The FTZ was after all established to enhance the country’s market-oriented reforms while looking for more appropriate systems that can be replicated by the rest of the country. Xi made his statement during a panel discussion with the Shanghai delegation to the ongoing annual session of the National People's Congress.
China and United Kingdom shipping firms sign coop MOUMar 6, 2014
Lord Mayor of London Fiona Woolf, Vice President Yu Liming of the Investment Committee at China Merchants Group, Maritime London Chairman Jeffrey Evans and CEO Doug Barrow got together in London to sign a memorandum of understanding to take their mutual cooperation to a higher level. The deal is for the sake of Chinese and British shipping firms as they are set to cooperate in their operations following the signing of the MOU.
First China A-share ETF on New York Stock ExchangeMar 6, 2014
Launched on the New York Stock Exchange on 5 March is the first-ever China A-share exchange-traded fund (ETF). Global investors now have direct access to the A-shares markets of mainland China. CEO Jonathan Krane of Krane Funds Advisors LLC, a firm that provides China-focused ETFs, said that the ETF will give exposure to medium-sized and larger Chinese firms.
Two sentenced in the United States for selling DuPont recipe to Chinese firmsMar 6, 2014
A jury in San Francisco convicted two men of working together to sell American firm DuPont's titanium-dioxide recipe to Chinese companies. The recipe is utilised to whiten products. Walter Liew and Robert Maegerle were charged under the Economic Espionage Act of 1996. Liew could be sentenced to a maximum of 20 years imprisonment, while Maegerle, as Liew's accomplish, could go to prison for a shorter time.
China seeks to have its firms spend USD99.2bn overseasMar 6, 2014
The Chinese government is looking to have its home-based companies spend more money in other countries in 2014. The amount is exactly USD99.2bn and the government promised that it will sweeten its offer with easier transactions for these companies if they successfully cut deals with foreign firms. Chinese authorities said during the National People’s Congress that they would simplify matters for Chinese companies who enter the international stage and offer attractive polices involving outbound investment.
China goes for financial revamp including bank-deposit insuranceMar 6, 2014
Top Chinese leaders vowed to instigate policies that involve more risks into the country’s financial structure that has become too familiar to bailouts and other types of support from the government. Analysts see this as Beijing’s way of overhauling the economy without hurting it too much. One of the chief proposals is to include insurance in bank deposits to allow local government units to issue bonds while letting the renminbi rise and fall more in trading.
Adidas records 7% sales growth in ChinaMar 6, 2014
German sports clothing and accessories manufacturer Adidas said its sales in China grew 7% in 2013. Adidas said the growth in sales is evidence that the brand is strengthening its position in all sportswear markets and expanding its retail footprint in lower-tier markets. Colin Currie, managing director of Adidas Group Greater China, expressed confidence that the company's momentum will carry over into this year.
China set to deliver highest equity return this yearMar 6, 2014
A survey conducted by American professional services firm Towers Watson showed that global fund managers expect China to deliver the highest equity markets return this year at 8.4%. Although the expected figure is lower than the expectations of 10% in 2013, China is set to lead equity markets return this year, the survey said. The fund managers also expect the Eurozone to deliver returns of 8.1%, 7.3% in Japan, 7.0% in the United Kingdom, 6.9% in the United States and 6.4% in Australia. The survey also showed that almost half of the world's fund managers are expecting their institutional clients to be more aggressive this year. The survey covers 128 global fund managers, with the majority having institutional assets under management (AUM) above USD5bn and retail AUM above USD1bn.
Shanghai hosted 271 global fairs in 2013Mar 6, 2014
Shanghai recorded 271 international events in the city out of the 793 fairs it hosted last year. That means the global fairs hosted by Shanghai rose 3.8% from a year earlier. The fairs were held on 8.7 million sq m of floor area. Shanghai has 12 comprehensive exhibition centers offering 500,000 sq m. By the end of this year, it may boast having the world's biggest available space for exhibitions at 1 million sq m, the Shanghai Commission of Commerce said. The total 793 fairs it hosted last year were held over 12 million sq m of floor area, nearing the goal of 15 million sq m by the end of the 12th Five-Year Plan period through 2015.
China Merchants Group awarded USD1bn Sri Lanka highway projectMar 6, 2014
The Sri Lankan government is set to embark on the largest highway project in the country and has awarded the state-owned China Merchants Group to carry out the massive infrastructure development. The USD1bn highway project, which covers 300 kilometers in length, will kick off later this year. The first phase of the construction project, about 48 km, is expected to begin in August and will be done under the Build Own Transfer (BOT) system. The first phase stretch will have five interchanges, 50 overpasses and 30 underpasses. The venture was earlier reported to be funded by China Development Bank.
Chinese buyers forecast to invest USD44bn in Australian real estateMar 6, 2014
Investment bank Credit Suisse has predicted that Chinese buyers will purchase up to USD44bn worth of residential property in Australia over the next seven years. In a recent report, the investment bank said Chinese buyers bought USD24bn of housing in Australia over the last seven years and the amount could almost double in the next seven years. Credit Suisse estimated that 12% of all new housing purchases and up to 18% in Sydney and 15% in Melbourne are by Chinese buyers. The Foreign Investment Review Board said Chinese investors were the largest source of foreign investment in Australian property in 2012 and 2013.