China Business Briefs 24/11/13

Until 1978, when China’s reform and opening up began under Deng Xiaoping, less than 20 per cent of its population lived in cities.

But three decades of staggering economic growth and urbanisation have changed all that, radically altering the face of Chinese society and condemning   hundreds of thousands of rural communities, some of which have existed for   hundreds of years, to the history books.

Now, China’s leaders are being urged to take urgent action to save thousands of historic villages from extinction amid reports that more than 900,000 villages were abandoned or destroyed in the first decade of this century.

This is the topic of a recent conversation between Nick Leung, Jonathan Woetzel, Elsie Chang, and Changqing Zheng. Jonathan is a director who leads the McKinsey Global Institute in Asia, where Elsie is a Senior Fellow. Changqing is an associate principal who is co-leading McKinsey’s newly opened office in Shenzhen. And our host, Nick Leung, is the managing partner of McKinsey’s Greater China Practice.
The energy exchange is part of the measures being introduced at the trade zone, a testing ground for free-market policies that Premier Li Keqiang has signaled he may later implement more broadly in the world’s second-largest economy. Energy futures would lure foreign investors to trade onshore and open the domestic futures market further, according to a China Securities Regulatory Commission statement on Sept. 29.

The quantity of violation cases handled by the China Securities Regulatory Commission in the first 10 months of the year has exceeded the amount for the whole of last year, the spokesman for the commission said at a news conference on Friday.

The commission dealt with 486 violation cases in the securities and futures markets from January to October, up 44 percent year-on-year. It launched 286 investigations, 25 percent more than in the same period last year.

A major task already underway is replacing turnover tax with value-added tax (VAT) levied on the difference between the cost of production and the price of a commodity on the market.

Following regional experiments since the beginning of 2012, changes to the VAT regime were rolled out over the whole country’s transportation industry and six service sectors on August 1, reducing taxes on business by 94 billion yuan ($15.3 billion) in the first 10 months of the year.

After its first day of trading on the New York Stock Exchange, stocks of China’s leading online sports lottery service provider 500.com Limited closed at 20.01 dollars per share, up almost 54 percent from the price of its initial public offering (IPO).The company said it priced its IPO of 5,786,000 American Depositary Shares (ADSs) at 13.00 US dollars each with a total offering size of 75.2 million dollars. One ADS represents 10 Class A ordinary shares of the company.

Wang rose from a poor background in inland Sichuan Province. After leaving the military in 1986 following a 16-year stint, he took a city job in the coastal city of Dalian that led to a chance to run a moneylosing municipal property business. “I didn’t know anything about real estate,” he recalled. But he turned it around, and in 1992, as an entrepreneurial wave swept China following a tour of southern China’s reform areas by then paramount leader Deng Xiaoping, it became Dalian Wanda (“wanda” meaning “many successes”), with Wang in full control.

That same gumption is pushing Wang into new fields. Not only is he spending heavily to make a mark in the movie business, but he has also moved into luxury travel and leisure abroad–witness his purchase earlier this year of British yachtmaker Sunseeker and his start on a 62-story hotel and apartment tower in London. Wanda also this year took over a small Hong Kong-listed real estate company, Hengli, and in November raised $600 million in a bond sale. For a man who, like most of his generation, never had occasion to live abroad or pick up foreign languages, these are huge ambitions. You might call them Chinese dreams.

China Life Insurance Co and Och-Ziff Capital are each committing $200 million, while Temasek Holdings unit Farallon Capital Management has agreed to buy $100 million,people familiar with the matter said.

In addition to those killed, more than 130 people have been injured, many severely. Photographs from Qingdao showed bodies with limbs missing, shattered pavement and cars flung against trees.

Sinopec chairman Fu Chengyu apologised to “the people of Qingdao and of the nation” for the loss of life and property in a statement released via the company’s Twitter-like Weibo feed.

Posted from Diigo.

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