China Business Briefs 11/12/13

The People’s Bank of China on Monday set the dollar-yuan central parity rate at 6.1130, stronger than Friday’s 6.1232. This was in line with broad dollar weakness despite better-than-expected U.S. job data released on Friday.
 
Will China let companies default on corporate bonds? | China Economic Review But the stakes will be raised next year. Chinese companies in 2014 must pay US$427 billion in interest and principle on securities, a surge of 19% on this year, according to data compiled by China International Capital Corporation.

Debt in China’s corporate sector is concentrated in a handful of industries, many of which have operated at overcapacity for several years. Metal and mining has taken on “aggressive” debt, Standard & Poor’s Rating Services noted in an August report. Coal and transportation services were also exposed to significant levels of borrowing.

He is very encouraged by the higher economic growth pace in the third quarter in China, and “we are extremely encouraged” by the recent reform moves of the Chinese government, Kim told a small group of reporters on the sidelines of an event hosted by the Economic Club of Washington, D.C..

China Clarifies Corporate Income Tax Policies for Shanghai Free Trade Zone | China Briefing News China’s Ministry of Finance and the State Administration of Taxation jointly issued the “Circular on Corporate Income Tax Policies for Outbound Investment with Non-monetary Assets and Other Asset Restructuring Transactions by Enterprises in the China (Shanghai) Free Trade Zone (Caishui [2013] No. 91, hereinafter referred to as ‘Circular’)” on November 15, which allows enterprises in the Shanghai Free Trade Zone (Shanghai FTZ) to defer corporate income tax payment. Detailed information can be found below.

The project aims to cement the region’s image as a global entrepreneurial hub. A series of events have been taking place throughout the week to encourage capital investment and to convince entrepreneurial talent to consider setting up base in the city.

Dubbed “Tibet’s Three Gorges Dam,” the massive project’s construction started in July 2009 with an investment of 4.57 billion yuan (748 million U.S. dollars). It is expected to be completed in 2016.
According to the announcement posted on its website, 82 administrative approvals have been cut or made easier to obtain, including eliminating the need to get permission from the National Development and Reform Commission to establish a coal trading business, and removing the need to obtain approval from the Ministry of Commerce to set up a chamber of commerce for foreigners in China.

China’s bank-card consumer confidence drops – People’s Daily Online The Bankcard Consumer Confidence Index (BCCI), compiled by the Xinhua News Agency and China UnionPay, a national bank card association, dropped 0.13 points year on year to 86.2 points last month.

The index was down 0.5 points from September, according to a report issued along with the index. A lower reading in the index shows a decline in consumers’ desire to spend.

Anbang purchased 1.13 billion Shanghai-traded shares of China Merchants Bank, raising its stake to about 5 percent, according to a Hong Kong stock exchange filing by the Shenzhen-based lender yesterday. China Merchants Bank didn’t disclose the price, which was valued at 12.5 billion yuan ($2.1 billion) based on yesterday’s closing price.

The Dongying-Huangdao II pipeline was breached on average more than 100 times a year by thieves to siphon off oil, a source at the pipeline subsidiary of Sinopec said.

Several major U.S. and European banks including Bank of America (BAC.N) and Switzerland’s UBS (UBSN.VX) have started shedding their Chinese holdings, some of which have been profitable on paper but tough to crack on an operational level.

Because there is currently no compulsory national standard on coverage areas for air purifiers, some companies have taken advantages of this loophole and failed to accurately inform consumers about the functions and capabilities of their products, the bureau said.

In the next five years, the company – usually called Sinopec – plans to invest another $20 billion in Africa and deepen cooperation and exchanges with African governments, companies, people and other stakeholders, said Fu Chengyu, chairman of Sinopec.

Posted from Diigo.

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