China Business Briefs 23/11/13

Economy

Tackling overcapacity is top priority[1]|chinadaily.com.cn

China’s top economic planner has pledged to take unprecedented steps to tackle industrial overcapacity as official data suggest the rate of industrial capacity utilization in the first half of the year hit a four-year low.

“Although overcapacity is an old and periodic problem that arises about every five years, it was not as serious before as it is now,” said Li Zhongjuan, an inspector of industrial planning for the National Development and Reform Commission.

China Tolerates Bitcoin, for Now – China Real Time Report – WSJ

Bitcoin – the difficult-to-explain electronic currency – is getting a boost in part from China. Watchers of the nascent market say Chinese interest is fueling a rise in prices, topping $700 in recent days.

That raises a question for those who are familiar with China’s tight grip on its capital markets: What does the central bank think of all this virtual money changing hands?

It looks like the central bank is willing to tolerate it, at least for the time being.

Guangdong to apply for FTZ following Shanghai – BUSINESS – Globaltimes.cn

South China’s Guangdong province has accelerated preparations for its own free trade zone (FTZ) and will apply for approval by the central government as soon as possible, governor Zhu Xiaodan said in Guangzhou Friday.Speaking ahead of an international conference on Guangdong’s economic development, Zhu said field surveys and feasibility studies for the proposed Guangdong-Hong Kong-Macao FTZ have been going on for more than half a year.

China considers pipeline reform to boost gas supply – Yahoo Finance

China’s largest oil-and-gas producer, PetroChina, built andruns nearly three quarters of the 54,000-km natural gas pipelinesystem across China. It controls most of the large,long-distance trunk lines that pipe gas from far-flung fields tofast-growing cities. Other state energy firms – Sinopec and CNOOC – run the remaining trunk pipelines but aremuch smaller operators compared to PetroChina.

Some independent gas producers say PetroChina has imposedunfair conditions on them for access to the grid, erasing theprofit-incentive for boosting output, and others are asking thestate giant for better access.

China set to overtake Japan in this year’s outbound M&A deals – Yahoo Singapore Finance

There is more urgency for Chinese banks to accelerate global growth as the leadership change is poised to precipitate more financial sector reforms, further pressuring margins, bankers said.

Among the Chinese banks on the prowl are Industrial and Commercial Bank of China Ltd (ICBC) and Agricultural Bank of China Ltd (AgBank) , which are in pursuit of two separate deals.

ICBC is in talks to buy Standard Bank Group’s (SBJK.J) London trading unit, while AgBank is considering a bid for Hong Kong’s Wing Hang Bank Ltd , Reuters previously reported.

Intl energy exchange unveiled in Shanghai – BUSINESS – Globaltimes.cn

The Shanghai Futures Exchange (SHFE) Friday unveiled the Shanghai International Energy Exchange in the China (Shanghai) Pilot Free Trade Zone (FTZ), a key step towards crude oil futures listing in China.The global trading platform for energy derivatives was funded by the SHFE with a registered capital of 5 billion yuan ($815 million), so far the largest in the FTZ.

The exchange will be able to operate regulated derivative marketplaces for crude oil, natural gas and other petrochemicals and provide clearing, delivery, information distribution and technology services, said Yang Maijun, head of the SHFE.

Wenzhou announces new finance rules as grey market loans legitimized – Frontpage – CHINA – BUSINESS – Globaltimes.cn

Wenzhou, an entrepreneurial hub in East China’s Zhejiang Province and a pilot area for financial reform in China, unveiled Friday a regulation to legalize underground lending that previously led to a local financial crisis.

It is the first local regulation in China to turn grey-market lending into acceptable credit to support cash-thirsty small firms while reducing financial risks.

Investing in China: Is this the country’s Thatcher moment? – Telegraph

Pictures of China’s futuristic new cities and high-speed railway lines may arouse our admiration, but of far more significance to investors, or   potential investors, in China is last week’s announcement by the ruling   Communist party of far-reaching political changes that have the potential to give the country a decisive push towards a truly capitalist future.

 For the Chinese economy, despite its superficial similarity to those of the free-market West, remains heavily state controlled, with about 70pc of companies owned by the government.

Govt draws up blueprint for e-commerce development |Industries |chinadaily.com.cn

China will further boost the development of e-commerce, aiming to bring online retail sales up to 10 percent of the country’s total retail sales by 2015, according to guidelines released by the Ministry of Commerce on Thursday.

China Clarifies the Cultural Undertaking Development Fee under Nationwide Tax Reform | China Briefing News

China’s State Administration of Taxation (SAT) issued the “Announcement on Issues Concerning the Registration and Declaration of the Cultural Undertaking Development Fee under the Value-Added Tax to Business Tax Pilot Conversion (SAT Announcement [2013] No. 64, hereinafter referred to as the ‘Announcement’)” on November 11, which clarifies the registration and declaration issues of the cultural undertaking development fee (CUD Fee) under the nationwide tax reform. Detailed information can be found below.

Under China’s tax regulations, entities and individuals providing advertising services in the country shall pay the CUD Fee. For overseas entities and individuals that provide advertising services in China, but have not set up any operation organization in the country, their advertising agents shall be the withholding agents for the CUD Fee.

China regulator orders more disclosure on shadow bank products: sources | Reuters

(Reuters) – The China Banking Regulatory Commission (CBRC) will require banks to report detailed information on their holdings of wealth management products beginning in 2014, four sources with direct knowledge of the new regulations told Reuters on Friday.

Wealth management products (WMPs) are short-term investment products that Chinese banks market to clients as a higher-yielding alternative to traditional bank deposits. They have become a crucial element of China’s shadow banking system, which analysts warn has contributed to excessive debt growth that has led to a build-up of financial risk.

Chinese Nokia workers pledge to continue strike | Reuters

GUANGZHOU, China (Reuters) – Striking workers at a Nokia factory in southern China on Friday threatened to extend industrial action after the company terminated the contracts of 59 employees for failing to return to work.

Hundreds of employees stopped work on Tuesday, complaining of changes in the wake of Nokia’s sale of its mobile phones business to U.S. software giant Microsoft. The striking workers said they are being forced to sign new contracts with worse terms of employment.

Companies

PetroChina’s US unit poised for dream expansion |Companies |chinadaily.com.cn

After moving its headquarters from New Jersey to Houston earlier this year, PetroChina International America Inc is primed to expand its trade in oil products, and more importantly, gain a firmer footing in North America by acquiring its own refining facilities.

Since 2005, Li Shaolin, president of PCIA, had run the US operations from New Jersey, but the advantages of Houston – the “Oil Capital of the World” – were too big a draw to resist.

Fosun Pharma Rebounds After Denying Chairman Arrest Rumors – Bloomberg

Shanghai Fosun Pharmaceutical Group Co. (2196), a maker of modern drugs and traditional Chinese medicine, rebounded in Shanghai trading after the company’s parent denied speculation that its Chairman Guo Guangchang had been detained.

SOEs scramble to sell assets[1]|chinadaily.com.cn

A number of large State-owned enterprises facing heavy losses are rushing to sell assets to make up for their deficits and avoid getting delisted from the stock market as the end of the year approaches.

However, analysts said that the moves may not be enough to reverse the long-term downturn faced by SOEs in sunset industries, as the companies are also being asked to give up larger shares of their profits and their scale is likely to shrink further.

By the third quarter of the year, seven Shanghai-listed SOEs – China COSCO Holdings Co Ltd, Aluminum Corp of China (Chalco), China Shipping Container Lines Co Ltd, China Shipping Development Co Ltd, China Merchant Energy Shipping Co Ltd, China National Erzhong Group and Huadian Energy Co Ltd – had completed or were preparing the disposal of assets worth 28.4 billion yuan ($4.66 billion).

Norway to join Chinese firm in Iceland oil exploration – Yahoo Finance UK

Norway said it would team up with a Chinese firm to explore for oil offshore Iceland, in a rare cooperation for the two countries since a diplomatic row over the award of the 2010 Nobel Peace Prize to Chinese dissident Liu Xiaobo.

Norway has the right to join an exploration licence with Chinese oil firm CNOOC in the waters between Iceland and Norway’s Jan Mayen island, and Norway’s government decided it should participate.

Chinese app developer Sungy makes strong NASDAQ IPO debut

After being initially priced at $11.22 per share to raise $79 million, once Sungy’s stock started trading it climbed quickly to $14.78 per share at time of publishing at midnight Beijing/Singapore time. Aside from the IPO windfall, Sungy has also made $20 million from a concurrent private placement today, making for a total of about $100 million.

Qoros Automotive Hopes to Lure China’s Car Buyers – China Real Time Report – WSJ

GUANGZHOU, China—China’s Qoros Automotive Co. is betting that China’s drivers will want a new brand they’ve never heard of.
“As a new brand I will expect that there will be things to solve,” Stefano Villanti, head of sales, marketing and product strategy, said Friday on the sidelines of an auto show in the southern Chinese city of Guangzhou. “The critical part is having a very timely response from the market and to react fast.”

35 Killed When New Sinopec Pipeline Explodes in Qingdao –

At least 35 people died in a blast at a new oil pipeline owned by China Petroleum & Chemical Corp. (Sinopec) in the eastern city of Qingdao on November 22. Some 166 were injured.

Officials announced the accident on weibo, the country’s version of Twitter. They said a section of the pipeline broke around 3 a.m., and the blast occurred at 10 a.m. time as workers were repairing the pipe leak

CNPC Scandal Has Links to Oil Fields in Iraq – Caixin

Mi Xiaodong, a former mid-level official at China National Offshore Oil Corp. (CNOOC) was detained by party discipline officials in early October, sources say. The source also said Mi was managing oil business for Zhou Bin, former chairman of Beijing Zhongxu Yangguang Petroleum and Natural Gas Technology Ltd.

Mi, 43, was an official of state-owned CNOOC’s Shenzhen branch. Two companies under CNOOC are in charge of exploration and exploitation of China’s oil resources in the South China Sea. The one for west half of the sea is based in Zhanjiang and the one for the east half if in Shenzhen. Both are in the southern province of Guangdong.

Posted from Diigo.

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