58.com files for US IPOSep 30, 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.
HK and China regulators on final stage of mutual fund recognitionDec 5, 2013
The China Securities Regulatory Commission (CSRC) said regulators of Hong Kong and mainland China have already reached an agreement on the framework of the mutual fund recognition scheme. The mutual fund recognition will allow qualified fund products from mainland China to be sold in Hong Kong and Hong Kong funds to be sold in China. According to Xu Hao, a senior manager at fund regulation department of the CSRC, the regulators have reached the final stage of the scheme, which will secure Hong Kong's position as the world's premier yuan hub.
China is now world’s top Bitcoin marketDec 5, 2013
With Chinese investors splurging on the digital-currency Bitcoin, a new set of price increases all over the world was recorded on the first week of December. Analysts are saying that investors from China have contributed to the bullish trend in the electronic-currency market. According to Bitcoincharts.com, about 1.8 million Bitcoins were traded on BTC China last month – the highest-trading platform volume worldwide. One Bitcoin was valued at USD1,117 on 4 December on the Bitcoin trading platform, Mt. Gox.
Huawei postpones US pushDec 5, 2013
Shenzhen-based Huawei Technologies Co Ltd has hinted that it is walking out of the US carrier-equipment market – at least for the moment. Huawei spokesperson William Plummer said that Huawei will instead prioritize its carrier-equipment business in markets with fewer problems related to competition and innovation. Industry analysts, though, think Huawei will focus on the Chinese and European markets, even as the US market is still a potentially very important one in the long run.
FTZ pushes Shanghai shares to highest level in 3 monthsDec 5, 2013
Shanghai stocks ended at their highest point in about three months on 4 December due to gains created by shares in relation to the Shanghai pilot free-trade zone. The Shanghai Composite Index obtained 1.3% to 2,251.76 points – the highest since 12 September. According to Shenyin and Wanguo Securities, optimism on local shares in connection with the FTZ enhanced market gains. Shanghai officials settled on a timetable to complete financial reforms in the FTZ.
Shanghai’s BesTV, Walt Disney to form consulting JVDec 5, 2013
Shanghai-based media firm SMG’s unit, BesTV, and US entertainment giant Walt Disney Co will set up a digital-consulting JV, BesTV announced on 4 December. BesTV will control 51% of the JV while the fully-owned indirect Walt Disney subsidiary, TWDC Shanghai Enterprises, will own the remaining 49%. The deal, though, is still to be approved by regulators. Executive Vice-President Stanley Cheung of Walt Disney China said that the JV will serve viewers in China who are increasingly connected to multiple-media platforms.
Redesigned Mustang to make China debutDec 5, 2013
Ford Motor Co is getting ready to launch a redesigned Mustang sports car that the US-based auto-giant is hoping will draw in younger buyers in both China and Europe. First produced in 1964, the Mustang was the first affordable sports car or pony car. Ford announced plans to launch its new Mustang on 5 December. According to Ford’s market research, the Mustang name still holds a lot of appeal worldwide including in China, where it can only be purchased through non-traditional means.
Yum vows new KFC marketing push as its China sales riseDec 5, 2013
Yum Brands Inc pledged significant new programs to boost its KFC brand in mainland China in 2014. Yum's China CEO, Sam Su, hinted that the company’s efforts will focus on changing KFC's menu. He also promised to raise Yum’s KFC marketing drive in China with the use of social media and other digital means. Yum, one of the top Western fast-food firms in China, reported that its same-store sales went up 1% in November, mainly because of discounted KFC products and Pizza Hut’s sales boost.
Microsoft to build creative center in ShaanxiDec 5, 2013
Global software giant Microsoft announced that it will soon establish a creative center in Shaanxi province with the Shaanxi Xixian New Area development and construction administrative committee. The creative center is just part of the development projects that Microsoft is planning to build in Shaanxi. According to the strategic cooperation memorandum of understanding between Microsoft (China) Co and Shaanxi authorities, the global software giant will also establish a software service outsourcing talent training base, technology practice center, a smart city with Microsoft technology, and a government education official cloud platform in the Xixian New Area.
China's central bank predicts bank profit growth to fallDec 5, 2013
An official of the People's Bank of China, the country's central bank, said Chinese banks' net profit growth rates are estimated to drop below 15% year-on-year at the end of this year. According to Sheng Songcheng, the head of PBOC's statistics department, growh trates will also slow to 10% year-on-year next year as the marketization of interest rates will cause difficulties to some small and medium financial institutions. Some may even face a serious crisis, he added.
China Cinda raises USD2.5bn in Hong Kong IPODec 5, 2013
The much-awaited initial public offering (IPO) in Hong Kong of China Cinda Asset Management Co has performed better than expected after the company raised USD2.5bn, the largest float this year in Hong Kong. Cinda, which buys bad loans from Chinese banks, sold 5.3 billion shares at HKD3.58, sources told The Wall Street Journal. About USD65bn in orders were reportedly received, or 26 times more than what China Cinda expected.
Hainan Airlines plans Beijing-Boston flightsDec 5, 2013
Hainan Airlines, the largest privately-owned airline company in China, announced plans to start serving direct flights between Beijing and Boston beginning June next year. The direct Beijing-Boston flights will start on June 20 and will be available four-times weekly – Wednesdays, Fridays and Saturday. Boston will become the fourth American city that Hainan flies to. The Chinese airline currently serves Toronto, Seattle, and Chicago. Last September, Hainan Airlines launched its inaugural flight to Chicago from Beijing through an Airbus 340.
China Mobile, Apple ink iPhone dealDec 5, 2013
The country's largest mobile operator, China Mobile Ltd, will soon be offering iPhones on its network after signing the long-awaited deal with Apple Inc. The Wall Street Journal reported that China Mobile is expected to be rolling out the iPhones on 18 December, in time of the China Mobile conference in Guanghzou. Both China Mobile and Apple have not commented on the report. China Mobile, the world's largest mobile phone operator by subscribers with about 740 million, reported 1.9% drop in net profit for the nine months through September. China Mobile has been racing with China Telecom and China Unicom to boost revenue per user.
China's overseas investment hits USD7.3bnDec 4, 2013
Chinese investments overseas went up by 20% to a record USD7.3bn from January to September of this year, a study conducted by equity fund A Capital has shown. The study revealed that state-owned enterprises accounted for 75% of the Chinese M&A deals abroad, especially in the United States, while private investors seek opportunities in other developed markets. Meanwhile, China has emerged as Sri Lanka's largest foreign direct investor accounting for 24% of the inflows for 2013, a Sri Lankan official said.
Wall Street optimistic about China's IPO Reform PlanDec 4, 2013
According to Chinese state media, Wall Street traders have expressed optimism that the initial public offering (IPO) reforms that China has planned to implement will bring further foreign investors to the country's stock market. The IPO reform is set to end the 13-month moratorium on offerings and could change the way firms raise funds in the country's stock market, said Wall Street professionals. Aside from Wall Street, traders and professionals around the world are also closely monitoring the reopening of China's IPO markets.
US warns South Korea on Huawei dealDec 4, 2013
The United-States government has warned its South-Korean counterpart about the latter’s plan to allow Huawei to develop its advanced wireless network. The US said that Huawei could be used by the Chinese government for spying. The US gave the same warning to another close ally-nation, Australia, suggesting that letting Huawei handle an expanded telecommunications system there might give China an opportunity to spy on communications of US allies. Two years ago, Huawei was excluded from participating in the putting up of a US wireless network, as national-security concerns were raised.
Shanghai is China’s No.1 city in economic restructuringDec 4, 2013
Shanghai has beaten Beijing as China’s top city for economic restructuring. A survey that ranked Chinese cities’ innovation capability, speed of transformation, and social harmony, ranked Shanghai’s Economic Restructuring Index at 78.1 in 2012 — a 4.6 rise from two years ago. According to the survey results released on 3 December by the Shanghai University of Finance and Economics and the Shanghai Applied Statistics Research Center, the national average is a mere 44.5. The provinces of Guangdong, Jiangsu, and Zhejiang are in third, fourth, and fifth places, respectively.
Beijing court orders Baidu to pay USD80 000 for copyright violationDec 4, 2013
The Beijing Haidian Distrist People's Court has ordered China's largest search engine, Baidu Inc, to pay Rmb491 000 (USD80,000) to online video provider Youku Tudou Inc for copyright violation. The alliance of online video providers alleged that Baidu and QVOD's media players and mobile handset applications had illegally played their copyrighted content by using an automated process, and links to pirated content are also available.
Yuan clearing to be possible in UKDec 4, 2013
Standard Chartered Bank has announced that it will work with the Agricultural Bank of China to provide Yuan clearing services in the United Kingdom, helping financial institutions and corporations in the UK execute Yuan transactions. With the Agricultural Bank of China's extensive distribution network and abundant Yuan funds in China's onshore market, the cooperation will inject sufficient Yuan liquidity into the market in London. The proposed Yuan clearing services in the UK will also pave the way for greater awareness and development of Yuan products and services beyond Hong Kong, said a statement from Standard Chartered.
Cameron and Ma discuss businessDec 4, 2013
UK Premier David Cameron and Jack Ma, founder of China’s Internet-based e-commerce giant, Alibaba Group Holding Ltd, held a brief closed-door meeting in Shanghai on 3 December in which they were joined by Sebastian Wood, British ambassador to China. They discussed the prospect of raising the profile of UK brands on Alibaba’s e-commerce websites such as Tmall.com, and means by which bilateral trade could be boosted.
China files complaint with WTO over US anti-dumping measuresDec 4, 2013
On 3 December, China’s Ministry of Commerce filed a complaint with the World Trade Organisation regarding anti-dumping measures that the United-States government has imposed on 13 Chinese products. MOC spokesperson Shen Danyang said that the US government, in its anti-dumping probe and assessments, improperly used targeted-dumping methods, refusing business firms independent tax rates, while using adverse facts. Shen added that this has resulted in goods from China being incorrectly considered as dumped.
China's shipbuilding industry accounts for 37.8% of world totalDec 4, 2013
The Ministry of Industry and Information Technology has revealed that China is still the world's leading shipbuilder after completing orders totaling 34.8 million deadweights from January to October. The total orders completed account for 37.8% of the world's total, said Vice Minister Su Bo. Newly received orders amounted to 46.44 million DWT, 46.4% of the global market share, and ongoing orders totaled 118 million DWT, 45.4% of the industry's share.
Wanda's AMC Entertainment eyes USD368m in IPODec 4, 2013
Wanda Group's US movie theatre chain AMC Entertainment Holdings has announced plans to raise up to USD368m in an IPO. The US movie theater chain plans to sell 18.4 million Class A shares at USD18 to USD20 each, with proceeds to be used to reduce debt and for general corporate purposes. In a statement released by AMC Entertainment, the theatre chain, which was acquired by China's Wanda Group for USD2.6bn, has applied to go public on the New York Stock Exchange under the name "AMC".
China to ease investment rules in Shanghai FTZDec 3, 2013
The People's Bank of China has said it will press ahead with pilot changes allowing foreign investors easy access to invest in the Shanghai free-trade zone. However, the central bank said it will not allow investors to use the FTZ as a back door to enter other parts of the country. In fact, the Wall Street Journal has argued that a blueprint released on 2 December suggests that the government is, to all intents and purposes, seeking to erect a wall around the 11-square mile zone, to ensure that money will not be moved out of the zone and into the rest of the country. The central bank has not offered a timetable for the changes or detailed regulations.
The yuan overtakes euro as second-most used currencyDec 3, 2013
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has said the Chinese Yuan, also known as the Renminbi, overtook the Euro in October to become the second-most used currency in trade finance, next only to the US dollar. Usage of the Yuan in trade finance grew to 8.66% in October, 1.89% higher than January 2012. The US dollar remains the leading currency with a share of 81.08%. The Chinese Yuan was used for trade finance in October by China, Hong Kong, Singapore, Germany and Australia, SWIFT said.