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's Q3 GDP growth slowest since Q1 2009Oct 21, 2014China's National Bureau of Statistics (NBS) announced that the country's gross domestic product rose 7.3% in the third quarter, the slowest increase in more than five years. The Q3 growth retreated from 7.5% in Q2 of this year and is the slowest since Q1 of 2009, when GDP growth was 6.6%. The slow growth was attributed to a slumping real estate market, weak industrial production and domestic demand. The property sector, which takes up about half of China's GDP, was a major drag as housing sales dropped 10.8% by value from January to September of this year, the NBS reported. The GDP figure, however, was faster than a median 7.2% growth forecast by 15 economists surveyed by the Wall Street Journal.
CNR bids to sell high-speed trains in CaliforniaOct 21, 2014
China is making its first concrete attempt to sell high-speed trains abroad with state-backed China CNR bidding to sell trains to California. CNR is working with US-based SunGroup USA to bid for California's USD68bn high-speed rail project. The contract involves supply of up to 95 trains that can travel 354 kph, Reuters reported. CNR and other high-speed train manufacturers are expected to submit their bids to the California High Speed Railway Authority by 22 October. CNR is competing against manufacturers from countries including Japan and Spain.
Chinese steelmakers look for profits abroadOct 21, 2014
Due to a shrinking local demand and excess capacity, the Chinese steel-making industry now seeks to tap overseas markets for a more sustained and long-term growth. Hebei Iron &Steel Co, the country's second-biggest steel manufacturer in terms of volume, believes that the present problems hounding the steel sector can be offset by selling more of its products abroad. The province of Hebei used to be able to produce 30% of the global steel output annually, but a lot of its steel mills have now been shut down. Hebei Iron &Steel has plans to build China's largest steel mill abroad in South Africa, with construction planned to start next year.
China-led consortium is only bidder for Mexican rail projectOct 21, 2014
An eight-member consortium that China South Locomotive and Rolling Stock Co and China Railway Construction Corp Ltd lead, was the sole group to present a proposal before the deadline for a high-speed passenger railway that will connect the cities of Mexico and Queretaro. According to Mexico's Ministry of Communications and Transportation, Queretaro is the country's aerospace-industry hub, so Mexico intends to have a railway line to serve over 23,000 commuters.
Takeda seeks to make China its 2nd-largest drug market within a decadeOct 21, 2014
Takeda Pharmaceutical Co, the biggest pharmaceutical firm in Japan, revealed its goal of making China its second-biggest market in 10 years' time through faster introduction of new products. Takeda added that it intends to launch three to four new drugs in China from now until 2019, specifically pharmaceuticals for tumors and diabetes. Takeda's emerging-markets President Giles Platford said that China is currently the company's fourth-biggest market sales-wise.
China Q3 cross-border yuan settlement hits USD781.31bnOct 21, 2014The People's Bank of China, the country's central bank, reported on 20 October that the nation's cross-border yuan settlement has surpassed Rmb4.8tr (USD781.31bn) by the end of September 2014. The PBOC made the announcement on its website that the huge yuan settlement has helped make the country's official currency the second-biggest cross-border payment currency of China. PBOC Vice-Governor Hu Xiaolian said that the yuan's internationalization is a huge contributory factor in the world's financial market.
China's investment in Korea hits USD780mOct 21, 2014
China's investment in Korea during the first six months of the year reached USD780m from USD480m during the same period last year, BusinessKorea reported. A representative of KOTRA, a state-funded trade and investment promotion organization operated by the Government of South Korea, said China's investment in Korea has shifted from real estate to culture and fashion industries. Sources said the establishment of an RMB clearing bank in Korea and the introduction of other investment-friendly policies are set to further bolster Chinese investment into the country.
Nestle opens dairy farm institute in HeilongjiangOct 21, 2014
In addition to the Swiss food giant’s existing facilities in China, Nestle has officially inaugurated its dairy farming institute in northeast China's Heilongjiang province. The institute, which was constructed over the past two years, features several classrooms and three dairy farms. Shanghai's China Business News reported that Nestle has also signed a memorandum of understanding with the Hielongjiang provincial government for the building of a fresh milk supply base worth USD408m.
Real estate investment slows furtherOct 21, 2014
China's real estate investment growth dropped in the first three quarters of the year, the National Bureau of Statistics (NBS) said. NBS data released on 21 October also showed that property sales and new construction declined, triggering a slowdown in the country's economic growth. Real estate investment went up 12.5% from January to September year on year. However, the figure is lower than the 13.2% growth in the first eight months of 2014. Revenue from property sales also dropped 8.9% while new construction tumbled 9.3%.
China's property industry continues to declineOct 20, 2014
Mainland China's real-estate slump is getting worse, badly affecting not just households and varied industries but home buyers and lenders alike are staying away, causing developers to go bankrupt. Many developers are cheating investors by way of scams, even as legit companies are running short of funds causing lending rates to go as high as 50%. In Handan, city officials are attempting to get back the USD1.5bn that developers supposedly came up with illegally, mostly from individual investors who were promised with huge returns.
Jin Liqun to head China's AIIBOct 20, 2014
Jin Liqun, former vice finance minister and development bank official, has reportedly been appointed as head of the proposed USD50bn Asian Infrastructure Investment Bank (AIIB). The Business Times reported that Jin, who recently resigned as chairman of China International Capital Corp, will be the head of AIIB this month. The appointment of Jin, although still has not been confirmed by Chinese authorities, further strengthen the chances that the AIIB will become a new Asian regional development bank. At least 20 countries have shown their interest in joining the bank as shareholders.
EU will not probe ZTE, HuaweiOct 20, 2014
The European Union has decided not to push through with a proposed anti-subsidies investigation into telecommunications-equipment manufacturers ZTE Corp and Huawei Technologies Co of China. The EU made the announcement after it convened with China during a trade-committee conference in Brussels on 18 October. Although the EU still has to accomplish internal procedures that its commissioners will approve in the third week of this month.
Qatar acquires 19.9% stake in HK Dep't-store operatorOct 20, 2014
The sovereign-wealth fund of middle-eastern nation Qatar has purchased one-fifth of Hong Kong's Lifestyle International Holdings for HKD4.78bn (USD616.1m). Real Reward, the controlling shareholder of Lifestyle, will unload 324 million shares, 19.9% of Lifestyle for HKD14.75 (USD1.90) per share to the Qatar Investment Authority. Real Reward will stay as the controlling shareholder with a 32.27% stake. It used to control 52.17% of Lifestyle, which also owns Hong Kong’s Sogo department store, before the deal was agreed on.
Bristol-Myers Squibb launches logistics plant in WuxiOct 20, 2014
The Bristol-Myers Squibb (China) Pharmaceutical Co launched a logistics centre in the city of Wuxi in Jiangsu Province, as the New York-based pharmaceutical firm seeks to increase its investment in the country, hoping to cash in on the local biopharmaceutical products market. The company has a registered capital of USD10m. It has put up a cold-chain storage facility, intended to distribute biological products and other drugs that require refrigeration.
China boosts investments in R&DOct 20, 2014
As it seeks to become the top innovator in the world, China has been taking huge steps to make that goal a reality. The Chinese government revealed plans to put up a 52-km particle collider that is capable of studying the mysterious subatomic particle called Higgs boson. German firm BASF, the largest chemical company worldwide, launched a USD110m extension of its Innovation Campus Asia Pacific in Pudong, Shanghai. While Hutchison China MediTech, the holding firm of a pharmaceutical and healthcare conglomerate in mainland China, is enrolling patients for colorectal cancer studies.
Costco aims to avoid Wal-Mart’s mistakes in ChinaOct 20, 2014
Costco Wholesale Corp is selling directly to the vast Chinese market using Alibaba's platform. Not only is Costco seeking to use domestic knowledge and a cheap structure, it also aims not to commit the same mistakes its fellow US-based retailer, Wal-Mart Stores Inc, did. Other American giant firms like Best Buy and eBay have also been disappointed by their performances in China -- one of the biggest if not the biggest consumer market worldwide. Costco is trying to find store designs and product mixes that Chinese customers prefer.
China's CGN to invest in Romania's nuclear plantOct 20, 2014
China General Nuclear (CGN) has been selected by Romania's government to invest in the country's Cernavoda nuclear plant. CGN and Romania signed a joint letter of intent to build two new reactors in the said nuclear plant. Nuclearelectrica, Romania's state-owned nuclear utility, said it was only CGN that submitted qualification documentation for the project. The project for two new reactors is currently estimated to cost EUR6.45bn (USD8.26bn).
Chinese banks to phase out magnetic cardsOct 20, 2014
The People's Bank of China (PBOC) said Chinese banks will soon phase out magnetic cards and promote the use of chip cards for security reasons. The central bank said chip cards are more secure and convenient. Commercial banks are required to widen the use of the said cards. Chip cards, introduced in 2011, should be used for newly-issued bank cards with yuan-denominated clearing accounts.
Nissan starts production of USD813m Dalian plantOct 20, 2014
Dongfeng Nissan Passenger Vehicle Company, a JV between Japanese carmaker Nissan and its Chinese partner Dongfeng Motors Corp, has begun the operation of its fourth plant in China in the northeastern city of Dalian. The plant has an investment of Rmb5bn (USD813m). It will focus on the production of SUVs and will have an annual production capacity of 150,000 vehicles. Dongfeng Nissan already has three other plants in China located in Guangzhou, Xiangyang and Zhengzhou.
JD.com earmarks USD1bn for storage, processing facilitiesOct 20, 2014Chinese e-commerce giant JD.com is earmarking USD1bn to expand its storage and processing facilities in China to prepare for next month’s Singles' Day shopping event. Last year, JD.com registered sales of USD1.6bn during China's biggest online shopping event. The company presently operates seven fulfillment centres and 97 warehouses in 39 Chinese cities. In its IPO document, JD.com said it would spend between USD1bn and USD1.2bn over the next three years to expand its fulfillment centres.
USD6.5bn BOC deal for Basel III requirements beats HSBC'sOct 17, 2014
The Bank of China sold USD6.5bn worth of contingent capital as Chinese banks increase their balance sheets to comply with the new international bank-capital rules known as Basel III. This is the very first time that a China-based lender has issued what are known as additional Tier 1 preference shares, which have the nature of bonds but turn into common equity should the lender’s core capital dip under particular trigger ratios. BOC's contingent capital deal is the world’s biggest ever, even more than the USD5.6bn HSBC deal in September this year.
China pledges USD16m more for Ebola fightOct 17, 2014
Chinese Premier Li Keqiang announced an additional Rmb199m (USD16m) pledge from China for additional aid to help in the fight against the deadly Ebola outbreak. Li, who was at the tenth Asia-Europe Meeting (ASEM) Summit in Italy, said the Chinese government stands ready to fight Ebola until a cure is found. China has earlier offered West Africa a total of Rmb234m (USD38m) in aid to combat the disease since April of this year.
China's property firms boost investments in JapanOct 17, 2014
China and Japan may have a long-time territorial dispute involving islands in the East China Sea, but this hasn't stopped both nations from maintaining their economic relations. Investors from China keep on buying Japanese real estate even as the yen keeps falling. So far in 2014, Chinese investment in Japanese real estate has reached about USD230m – about triple of what Chinese investors spent in Japan in the same period in 2013, according to Jones Lang LaSalle.
China’s September FDI up 1.9%Oct 17, 2014
Foreign direct investment in China rebounded after 60 straight days of decline, an indication of investor-confidence revival in the second-biggest economy worldwide, according to the country's Ministry of Commerce. Investors from overseas brought in USD9bn into China in September -- a 1.9% rise year-on-year. This was the fastest FDI rate increase since April this year.