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 to overtake US as top business travel market by 2016Oct 30, 2014Global business travel spending is expected to reach a record USD1.18tr this year and the Global Business Travel Association (GBTA) said China will overtake the United States to become the world's top business travel market within two years. The GBTA said 40% of the total global business travel spending for this year will come from Asia Pacific. Aside from China, business travel market in India and Indonesia are expected to grow in terms of spending. Other markets such as Vietnam, the Philippines, Bangladesh and Sri Lanka have also showed high growth in terms of business travel spending
China relaxes credit-card payments rulesOct 30, 2014
The Chinese State Council released a statement saying that qualified local and foreign companies can apply to put up bank card-clearing operations in the country to settle payments between vendors and banks. Industry experts are saying that the Chinese government's decision could resolve a trade dispute with the United States government and let foreign firms like MasterCard Inc and Visa Inc boost their business in China.
Beijing to upgrade local consumption, boost economic efficiencyOct 30, 2014
After Premier Li Keqiang presided over a State Council executive meeting, the Chinese government made an announcement on 29 October that it will soon put in measures to enhance domestic consumption so as to improve the quality and efficiency of China's faltering economy. The announcement also mentioned that the country has to increase people’s incomes so they can raise their consumption capabilities. According to the National Bureau of Statistics, the Chinese economy grew 7.4% year-on-year to Rmb42tr (USD6.84tr) by Q3 of this year.
China to become United State’s largest market for inbound touristsOct 30, 2014
A US-based tourism promotion agency has predicted that China could become the US’s largest market for inbound tourists. Brand USA said a recent survey showed that 60% of Chinese tourists want to include the United States in their travel destinations while 59% said they will travel to the US within 12 months. Some 1.8 million Chinese tourists visited the United States in 2013, or 22.5% higher from a year ago, the US Department of Commerce said.
Investments in telecoms, media and technology hit USD5.35bnOct 30, 2014
Investment in the country's telecoms, media and technology (TMT) industry reached USD5.35bn in Q2 of this year, a 30-month high, PricewaterhouseCoopers said. PWC said the investments were made mostly by private equity and venture capital firms. The investment amount in Q2 is equal to the total investment for the TMT industry in H1 of last year.
PMI picked up slightly in OctoberOct 30, 2014
China's official manufacturing Purchasing Managers' Index (PMI) likely edged up slightly in October to 51.2 from 51.1 in September, a poll conducted by Reuters on 24 economists showed. The figure shows some signs that China's economy, the world's second biggest, may be stabilising. Reuters reported that the pickup in PMI could help assure investors that China is not doing as badly as some had feared.
'Big Brother' goes to ChinaOct 30, 2014
For the first time, China will finally have its own version of the popular reality show Big Brother. This after Endemol, the creator of Big Brother, signed a deal with China's biggest online video site Youku Tudou. Big Brother China will be broadcasted on Youku Tudou's site, which is accessed by 500 million active users. The show will last for ten weeks and will be launched in early 2015.
Shanghai-Hong Kong linkup to move ahead as plannedOct 30, 2014
President Chow Chung-kong of the Hong Kong Stock Exchange said that a plan to allow cross-trading between Shanghai and Hong Kong stock markets will be pursued. The Shanghai-Hong Kong Stock Connect platform will allow international investors trade chosen stocks in Shanghai’s exchange and let mainland-Chinese investors purchase stocks in the autonomous administrative region of Hong Kong. The launch was originally planned to be on the last week of October this year but was delayed.
Chinese stocks open lower after US Fed’s confirmation to end QEOct 30, 2014China's stocks opened a bit low on 30 October after the United States Federal Reserve officially announced its plans to end the quantitative easing (QE) stimulus programme. The Shanghai Composite Index opened at 2,371.89 points, 1.14 points down, while the Shenzhen Component Index fell 1.7 points to open at 8,088.98.
FAW-VW to recall 270,635 vehicles in ChinaOct 30, 2014
FAW-Volkswagen Automotive Co Ltd, the joint-venture company that China's FAW Group and Germany-based Volkswagen Group created, has recalled 270,635 automobiles in China because of defects in their airbags. The recall, which started on 29 October, will affect 4,692 A4 imported Allroad models, and 265,943 locally-manufactured A4L units made from 25 May 2012 to 22 October 2014. According to the country's General Administration of Quality Supervision, Inspection and Quarantine, the front airbag could malfunction or not deploy at all should there be an impact to the sides of the vehicles.
Six Amazon platforms open for sales to ChinaOct 30, 2014
Six Amazon platforms located in the United States, Germany, the United Kingdom, France, Italy, and Spain opened for sales to consumers in Greater China. Shoppers in China can now place their orders without going through other agencies on foreign online shopping platforms. They can do it directly with platforms that the US-based Amazon.com Inc owns. Analysts believe that Amazon's move is meant to enhance its sales during the upcoming Double 11 online shopping festival in China and to counterattack the China-based e-commerce giant Alibaba Group Holding Ltd's own global ambitions.
World Bank urges China to cut 7.5% growth forecastOct 29, 2014The World Bank has warned China against carrying its ambitious economic growth target of 7.5% and suggested that it cut its target to 7%. The World Bank said China can trim its growth forecast to 7% for 2015, saying the lower growth target would not hurt the country's labour market. Karlis Smits, a senior economist at the World Bank office in Beijing, said the focus should be on reforms rather than meeting specific growth targets. The World Bank and other analysts expect China's economy to expand by 7.4% this year but the bank warned that it will not welcome a 7.5% growth target from China in 2015.
Most of Forbes China Rich List members are living in BeijingOct 29, 2014
With 67 members of China's Rich List residing in Beijing, the Chinese capital continues to top the list of cities in the country with the largest number of billionaire residents. The 2014 Forbes China 400 List showed that Beijing's air pollution has not prevented serious money-making in the city as it ranked first in the number of rich residents. Beijing’s famous wealthy resident is Baidu CEO Robin Li. The capital is followed by Shenzhen with 44 rich members, Shanghai with 38, Hangzhou, the residence of Alibaba Group Chairman Jack Ma, with 25 and Hong Kong with 20. Taking the sixth to tenth spots are Guangzhou, Chengdu, Chongqing, Nanjing and Ningbo.
Huawei inks sponsorship contract with Brazil's SantosOct 29, 2014
Brazilian football club Santos announced that it signed a sponsorship agreement with China's Huawei Technologies Co Ltd. The deal, whose terms were not disclosed, is valid until the end of this year. There is an option to extend it, Santos said. The deal calls for Huawei to have its name and logo on the front of Santos’ team uniform for its Brazilian Serie A and Copa do Brasil games.
Honda cuts sales forecast in China, JapanOct 29, 2014
Japan's Honda Motor Co cuts its sales predictions for 2014 due to stiffer competition in the country and in Greater China. The company has suffered from new-model recalls. It announced though that a weaker yen will help it stick to its operating profit of about JPY770bn (USD7.1bn). Honda is the third-largest automobile manufacturer in Japan based on revenue.
Alibaba seeks Apple JVOct 29, 2014
Alibaba Group Holding Ltd of China admitted that it wants to partner with American firm Apple Inc regarding financial payments. In an interview at the WSJD Liveglobal technology conference in the state of California, Alibaba Chairman Jack Ma said that Alibaba hopes it is a ‘marriage’ that is beneficial to both companies. Alibaba owns Alipay, which has some 300 million active users.
Alibaba launches Alitrip travel websiteOct 29, 2014
Alibaba Inc on 28 October officially started an independent online travel business named Alitrip. The new firm hopes to tap into the surging need for leisure travel in the domestic market. Alitrip was originally Taobao Travel. General Manager Li Shaohua said that they expect to book vacations worth Rmb43bn (USD7bn) in 2014. Some 10,000 merchants on the Alibaba platform sell flights, hotels, and vacation packages.
Ma is China's richest person in Forbes list with USD20bn in assetsOct 29, 2014
US-based Forbes magazine ranked Alibaba Inc Founder and Chairman Jack Ma as the richest person in China with a personal fortune of about USD20bn. Also, Forbes noted in its yearly "China Rich List," that China's billionaires have increased their numbers even though an economic slowdown still troubles the country. There are now 242 Chinese billionaires compared to 168 last year.
Shanghai FTZ model to spread in ChinaOct 29, 2014
Chinese President Xi Jinping, speaking to a gathering of the country's top decision-makers, said that the business model of the Shanghai pilot free-trade zone will have to be replicated in other areas of China if conditions are suitable. Xi likened the experience gained from the Shanghai FTZ to seeds cultivated in a test field that should be planted in other places. An estimated 12,000 companies were set up at the Shanghai FTZ since its launching in September 2013, making Rmb747.5bn (USD122.25bn) in foreign trade in its first full year of operation.
China to stop issuing permits to small coal projectsOct 29, 2014
The National Energy Administration said the central government will no longer issue permits to new small coal mining projects as part of the plan to trim excess capacity. No new coal mining projects will also be permitted in the eastern parts of China while the government will enhance exploration of resources and environmental protection in the western regions. China's State Council has been trying to improve the country's energy structure with less dependence on coal and more on renewables, an expert said.
Afghanistan seeks China investmentOct 29, 2014
Afghanistan President Ashraf Ghani Ahmadzai is planning to invite potential investors to finance his country's development, especially in its growing mining industry. Ghani Ahmadzai made the pronouncement during his state visit to China, his first overseas trip, where he received pledges of hundreds of millions of dollars in aid. The Afghan president met with Chinese President Xi Jinping.
Japanese business community in China hopes for Xi-Abe summitOct 29, 2014
The Japanese business community in China is hoping that China's President Xi Jinping and Japan's Prime Minister Shinzo Abe will hold a bilateral meeting at a summit to further speed up business approvals. Bank of Tokyo-Mitsubishi UFJ China Head Hidekazu Horikoshi said every Japanese firm in China is expecting a photo of Xi and Abe shaking hands printed in newspapers because that would mean government approval for projects and business licenses would be given immediately.
China-Singapore direct currency trading beginsOct 28, 2014
Companies in Singapore will now find it easier to do business with their Chinese counterparts after China and Singapore on Tuesday started direct currency trading. The agreement was reached at the 11th Joint Council for Bilateral Cooperation in Suzhou, China. The meeting was co-chaired by Singaporean Deputy Prime Minister TeoCheeHean and Chinese Vice Premier Zhang Gaoli. The Monetary Authority of Singapore (MAS) said the direct currency trading will lower forex transaction costs and encourage greater use of the Singapore dollar and the Chinese yuan in cross-border trade and investment.
CGN, Dalian Wanda, HK Airlines aim to raise USD10bn in Hong Kong IPOOct 28, 2014
CGN Power Co, Dalian Wanda Commercial Properties Co, and Hong Kong Airlines, all based in China, seek to raise USD10bn in all in their separate initial public offerings in the special autonomous region of Hong Kong. Guangdong-based CGN plans to get its IPO approved on 30 October by the Hong Kong Stock Exchange for a USD3bn IPO. Dalian Wanda seeks to come up with USD6bn on its own IPO. Hong Kong Airlines also wants to raise US500m.