Bumper edition today after last week’s absence.
‘Slowing growth ahead’ for property prices |Industries |chinadaily.com.cn **Colour me sceptical. There’s nowhere else for ordinary savers/investors** Average housing prices in 100 major cities monitored by the China Index Academy rose 0.68 percent month-on-month to 10,758 yuan ($1,707) per square meter in November, the 18th consecutive increase since June 2012.
The growth rate, however, was at the lowest level this year, the academy said.
Nation’s steel demand loses its strength|chinadaily.com.cn The growth rate of China’s steel demand will decline from 6.3 percent this year to 3.2 percent in 2014 in the wake of the country’s economic transformation and the government’s efforts to improve the environment.
The nation’s steel consumption next year is estimated at about 715 million metric tons, which represents a 3.2 percent year-on-year growth rate, Li Xinchuang, head of the China Metallurgical Industry Planning and Research Institute, said on Friday.
CSRC to boost IPO reform plan – Chinadaily.com.cn The China Securities Regulatory Commission will launch a support system for the nation’s IPO reform plan and strictly implement a delisting system, the commission said on Friday.
The IPO reform plan, which was released on Nov 30, was widely welcomed by the market, and the CSRC is quickening the pace of the launch of a support system.
“For instance, the Measures for the Administration of Securities Issuance and Underwriting, the IPO Pre-announcement System, and guidance on information disclosure will be released soon after going through related legislative processes,” said Deng Ge, a CSRC spokesman.
China Rongsheng ghost town reflects shipbuilder’s struggle to survive | Reuters (Reuters) – Deserted flats and boarded-up shops in the Yangtze river town of Changqingcun serve as a blunt reminder of the area’s reliance on China Rongsheng Heavy Industries Group, the country’s biggest private shipbuilder.
Like Rongsheng’s shipyards, the area is struggling to survive.
Great Wall of Canadian Energy Keeps Chinese on Outside – Bloomberg **I look forward to China announcing that the Arctic is a vital national interest** Canadian Prime Minister Stephen Harper said developing the world’s third-largest pool of oil reserves is as difficult as building China’s Great Wall. Chinese companies may find themselves outside looking in.
Harper announced a year ago tomorrow that Canada will keep state-owned enterprises from acquiring oil sands businesses — one of the last and biggest steps in an overhaul of foreign-investment review rules that govern takeovers of Canadian companies together worth more than C$1.87 trillion ($1.75 trillion).
China Reforms Seen Adding Less Than Half Point to Growth – Bloomberg China’s broadest economic reforms since the 1990s will add less than half a percentage point to annual growth this decade, a survey showed, underscoring the likelihood of a cut in the nation’s expansion target.
Fourteen of 19 economists see policies from a Communist Party summit last month boosting gross domestic product either by a negligible amount or less than 0.5 percent a year compared with their previous outlook, according to the Bloomberg News survey. Ten analysts say China will need at least a small amount of monetary, fiscal and credit stimulus to meet the government’s “bottom line” of 7 percent growth in the next five years.
Chengdu is the Wild West of China, says our entrepreneur on the ground – Telegraph The city is like the Wild West, quite literally, as it is located further inland, away from the more Western-friendly East coast of the country, and filled with opportunity. The atmosphere, too, is a little like Texas – Texas on drugs.
Chinese VCs Roll up Sleeves Steven Hu, a partner at Qiming Venture recently left the prestigious VC firm to take the reins of local mobile gaming company OurPalm. Mr. Hu said that lots of people – even those who knew him well – couldn’t understand what motivated him to make the jump, and in explaining his mindset, he gave us a fivefold reason, ascribing the departure to his passion for game, perfect timing, OurPalm’s capital advantage and great team as well as a non-stop dream to build up a Chinese entertainment empire.
As a matter of fact, Mr. Hu’s ‘sky dive’ isn’t an isolated case of veteran Chinese venture capitalists leaving their firms to either join one of his/her portfolio companies or to start a new cause. Known as those who always encourage the others to quit on steady income and leisure lifestyle to start a new business, venture capitalists are now rolling up their own sleeves to get some dirty jobs done, from talk the talk to walk the walk.
China overtakes Taiwan with most fast-growing companies **How much of this is rising with the local tide, though? How many would compete globally?** UK-based consulting firm Deloitte says China surpassed Taiwan with the most ranked companies on its annual list of the top 500 fastest-growing companies in APAC, 128, followed by Taiwan with 108, and India with 78.
“China, India and Australia are generating an increasing number of fast-growing, successful technology companies and are challenging Taiwan as a technology hub in the region,” said Ichiro Nakayama of the Fast500 Asia Pacific program.
China Gauges Trade-Zone Deposit Certificate Demand, Herald Says – Bloomberg China’s central bank gauged demand for tradable certificates of deposit among banks operating in the Shanghai free-trade zone and solicited suggestions for regulations, 21st Century Business Herald reported.
Will Chinese Pay for Content? – Silicon Hutong A contentious debate about China in the media industry is whether or not Chinese will pay for content. Most intelligent observers would answer no: Early experiments selling music were not encouraging, and with search engine Baidu offering links to free downloads, and later a legitimate streaming service, China’s mostly-young internet users could be forgiven for thinking “what’s the point of paying?”
Why not list in London | McKinsey China When the Alibaba listing saga entered a new phase a few weeks back with heightened competition between the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange (HKEx), I found myself wondering: Why not London? Why do so few Chinese companies list in London? When Alibaba actually initiated discussions with the London Stock Exchange (LSE) just a few days later, I decided to look into it.
China bans banks from Bitcoin transactions – FT.com China has banned its banks from handling Bitcoin transactions, after surging demand from Chinese investors helped drive a 5,000 per cent appreciation in the much-hyped virtual currency this year.
Beijing stopped short of outlawing Bitcoin altogether and said individuals were free to buy and sell it at their own risk, but it highlighted what it said were dangers associated with it, including money laundering and criminality.
China widens bad banks’ asset options – FT.com China has given its new provincial “bad banks” a wider channel for selling assets, in an effort to strengthen their ability to handle non-performing loans.
Asset management companies – established this year in the eastern provinces of Zhejiang and Jiangsu to help take bad debt off the books of local banks – will be allowed to sell these loans to buyers outside their respective provinces, according to local media reports.
Fifth Chinese Artwork Sells for at Least 100 Mln Yuan in 2013 – Huang’s Gaiety in the Grassland sold for 129 million yuan, or US $21 million, at an auction run by Beijing Poly International Auction Co. Ltd. The figure was a record for a work by Huang.
China issues 4G network licences to China Mobile, Unicom and Telecom – Yahoo Finance China has awarded 4G licences to China Mobile Ltd, China Unicom Hong Kong Ltd and China Telecom Corp Ltd in a widely expected move that will benefit industry players from telecom equipment makers to Apple Inc.
China c.bank to monitor development of online financial services – Yahoo Finance China’s finance sector has been dominated by state banks,who traditionally focus on larger companies over the needs of smaller firms and individuals, leaving few options.
But Internet companies, including Alibaba Group Holding Ltd , Baidu Inc and Tencent Holdings Ltd, have started using their platforms to push financial products developed by finance management firms, looking to fill this gap in the market.
China’s IPO Freeze to Melt in Midwinter | China Private Equity, Published by China First Capital IPOs are returning to China. The China Securities Regulatory Commission this weekend announced its long-awaited guidelines on a new, somewhat liberalized process for approving IPOs. The rush is now on to get new IPOs approved and the money raised before Chinese New Year, which falls on January 31st, less than two months from now. Ultimately, the CSRC hopes to clear within one year the backlog of over 800 Chinese companies now with IPO applications on file. Thousands of other Chinese companies are waiting for the opportunity to submit their IPO plans. The CSRC stopped accepting new applicants almost 18 months ago.
A Significant Warning on Reform Roadblocks in China – China Real Time Report – WSJ **Them SEOs aren’t going down without a fight** Wu Jinglian, a major intellectual force behind China’s economic reforms since the 1980s and someone described as “the conscience of China’s economic circles”, said in a widely distributed interview (in Chinese) broadcast on Chinese Central Television on Thursday evening that he was “worried that vested interests are the biggest obstacle to reform and a market economy.”
China NNN Agreements Over Thanksgiving we took on a quasi-rush job (well over one day) for a China NNN Agreement and we just completed that NNN Agreement. Because the time frame was so short, we had to condense much of our instructions into fewer emails. The following comes from the email from us to the client, enclosing the completed NNN Agreement. We are posting the bulk of this email below as it is helpful in explaining a bit more about what it takes to secure an enforceable NNN Agreement with a Chinese company.
China’s VAT Reform to Include Railway Transportation and Postal Service Industries | China Briefing News The executive meeting of China’s State Council chaired by Premier Li Keqiang decided on Wednesday that China will expand its reform of value-added tax (VAT) in lieu of business tax (BT) to the railway transportation and postal service industries starting on January 1, 2014.
According to the meeting minutes posted on the State Council’s website, VAT reform is considered a critical part of China’s continued fiscal and tax reforms. Over the past two years, the pilot reforms have proven effective in pushing the development of China’s service sector and boosting the country’s job market.
Sina Corp., Investment Fund Management Firms Mull Net Sales – Online media company Sina Corp. is negotiating with several investment fund management companies to sell their products through its Twitter-like weibo service, a source close to the company says.
It has applied to the securities regulator for a third-party fund sales and settlement license, the source said. It is unclear when it will introduce the investment service.
Dongfeng Motor Group Co. Ltd : Dongfeng, Renault Receive China Approval for $1.3 Billion Car-Making Venture | 4-Traders Dongfeng Motor Group Co. and Renault SA) have received approval from China’s top economic planner to start a $1.3 billion car-making joint venture in China, the Chinese firm said in a statement Thursday.
The two parties will each own 50% in the venture, which is expected to produce 150,000 multi-purpose vehicles and engines a year, the statement said. Dongfeng didn’t say when production will start.
GM Nov China auto sales up 13.3 pct y/y – Yahoo Finance General Motors Co and its Chinese joint ventures sold 294,500 vehicles in China inNovember, a 13.3 percent increase from a year earlier, the U.S.automaker said on Wednesday.
In October, GM’s vehicle sales had risen 12.2 percent year on year.
Apple Needs More Than China Mobile (AAPL, CHL) After months of speculation, Apple is reportedly playing nice with China Mobile. A source told The Wall Street Journal that a deal is finally in place for the world’s largest wireless carrier to start stocking the iPhone.
It’s easy to see why Apple fans are welcoming the news. China Mobile had 759.3 million customers at the end of October. Think about that. We’re talking about more accounts than the entire populations of all nations outside of China and India.
China Construction Bank to apply for UK branch license -source – Yahoo Singapore Finance **London will be friendlier to Chinese investors than New York. Look at David Cameron’s obsequiousness** China Construction Bank is to apply for a branch license to operate in London following an easing in UK rules on how overseas banks can be set up, a person familiar with the matter said on Monday.
Asian LNG buyers to head to China for more price talks in Feb – sources – Yahoo Singapore Finance Asian liquefied natural gas (LNG) buyers plan to meet again in China in February to continue looking for ways to leverage their buying power for lower prices, industry officials said at the end of talks here on Friday.
Officials from India, China, South Korea, Japan and Taiwan which import about 70 percent of the world’s LNG discussed the demand outlook, pricing and supply sources, they said after the two-day meeting, but admitted getting results was a challenge.
Chevron’s $6.4 billion China gas project pushed back again: sources – Yahoo Finance *Is Chevron nervous following Sinopec’s Qingdao disaster? They are right to be careful** A $6.4 billion gas project being built by Chevron (CVN.X) in China is facing further delays due to disagreements with partner PetroChina over how to develop the technically tricky fields, three industry sources said.
The Chuandongbei project, the U.S. firm’s largest investment in China, is now not expected to deliver first gas until the second half of 2014, nearly 7 years after the firms clinched a 30-year deal to produce 7.6 billion cubic meters of gas a year.
Posted from Diigo.