China Business Briefs 12/12/13

Qualcomm said that Chinese regulators launched their antitrust probe in late November, adding that it was “not aware of any charge by the NDRC that Qualcomm has violated the anti-monopoly law”.

The competitive playing field will be more even if everyone has to pay the same market price for energy, land, water, capital and labor. Indeed, state-owned enterprises may have to pay more if they are required to make up some of the pension deficits. This will lead to more of a focus on quality of execution, on strength of functional execution, on productivity and efficiency: areas where multinationals are generally stronger.

The National Development and Reform Commission (NDRC) has been working with several other central government agencies to develop a plan to end the two-year-old policy, which obliges the China National Cotton Reserves Corp. (CNCRC ) to buy cotton from farmers whenever price falls under a certain level.

The new urbanization plan is running into problems across the grid, which is already peppered with contradictions.

Central Bank, CBRC Split on Including Rural Lenders in Deposit Plan – **Twenty years…!** The central bank and China Banking Regulatory Commission (CBRC) disagree over whether to include all small rural banks into the planned deposit insurance mechanism, for which a plan has appeared after 20 years of debate.

The top leadership has sided with the central bank in saying that the draft plan should be mandatory for all deposit-taking institutions, including rural banks, rural credit cooperatives, village and township banks and thrift institutions, a source close to the People’s Bank of China said.

Closer Look: Annual Work Conference Picks Up Where Plenum Left Off – Top policymakers usually use the meeting to review the year’s economic conditions and set out a roadmap for next year’s development. Major economic targets – GDP growth, inflation rate, monetary supply, the budget and trade figures – will be set.

Those targets will be announced to the public at a meeting of top legislators the following March. (Recently, many research institutions and think tanks have made predictions for China’s next year’s GDP growth target, debating whether the government will set it at 7 percent or 7.5 percent. However, most researchers agree that next year’s actual figure for GDP expansion is likely to reach 7.5 percent.)

Hong Kong, Shanghai weighed by bank shares – Asia Markets – MarketWatch **Good for the consumer though** The Shanghai Composite and Hong Kong’s Hang Seng Index closed 1.5% and 1.7% lower, respectively, after news that China’s four state-owned banks and a former state policy bank will issue a total of 19 billion yuan ($3.1 billion) of negotiable certificates of deposit, the latest step in China’s move toward less-restricted interest rates. Liberalization has prompted concerns that the banks will face short-term pressure on their profits.

The fines are the first of their kind for the province and also come after China’s central government released a nationwide reform blueprint last month that vowed to impose more fees and taxes on polluters.

Investment-Banking Revenue Falls in China – WSJ.com But overall, a slowdown in share sales including initial public offerings, which tend to pay bankers more than bond sales, hit revenues for investment banks, as did a decline in fees from merger-and-acquisition activity.

“Equity raisings are still well down from peak levels and that has meant that [equity capital market] revenues haven’t grown in the last couple of years,” said  Derek Ovington, CLSA’s head of regional banks in Asia.

China Explores Smoking Ban in Effort to Reduce Tobacco-Related Deaths – China Real Time Report – WSJ **The tobacco monopoly needs to do as Shell did, and present itself as leading the fight against the very problems it creates. Sponsoring a few cancer wards and researchships would go a long way** Within the next year, China’s legislators will accelerate efforts to enact a national regulation banning smoking in public places in China, said Yang Jie, deputy director of Tobacco Control Office for the Chinese Center for Disease Control and Prevention, at a news briefing on tobacco-related health problems in China. Mr. Yang said China’s State Council, the country’s cabinet, is currently planning the regulation and it is expected to be enacted next year.

China’s State Tobacco Monopoly Administration wasn’t immediately available for comment. The tobacco industry pulled in 865 billion yuan ($142.5 billion) from taxes and profit in 2012, up 16% from a year earlier, according to the State Tobacco administration.

That certainly seems to be the case with Autohome Inc., a Chinese automobile information website, which saw its stock price surge 77% on Wednesday on its debut on the New York Stock Exchange. Investor sentiment was probably buoyed by news earlier this week that auto sales in China hit a record high in November.

Under the terms of the proposal, Dongfeng and the French state would each end up holding around 20 percent of Peugeot and the Peugeot family around 15 percent, the source said.

More than 10,000 people have already signed up, according to the company’s online portal.

Brightening up an otherwise dim IPO market for Hong Kong this year, Cinda has raised $2.5 billion – an amount set to grow to nearly $2.9 billion, with sources familiar with the matter saying the stellar demand virtually guaranteed the exercising of an overallotment option.

Anbang raised the stake in the lender as it is optimistic about the Chinese lender’s outlook, the country’s sixth-largest bank by assets said in a filing to the Shanghai Stock Exchange.

Two kinds of websites are available. General sites can be established in a breeze by dragging the modules into the editing interface. Industrial sites, which features custom models catered for needs of different industries, are only opened to members. Website thus created is pending for approval, which will be completed within around ten working days.

ChinaCache is a major supplier for China Mobile, according to analyst Jun Zhang:

ChinaCache has become a top pick of multinational companies such as Apple (AAPL), General Motors (GM), Microsoft (MSFT), etc. for CDN service providers. 70% of China Mobile’s mobile CDN services were provided by ChinaCache.

Currently what ZetYun is developing include an Alpine-like service on predictive analytics for big data. It partners with local business-facing service providers like Ntalker, a CRM solution provider, on predictive modeling. A model then can be adopted by Ntalker’s clients including a Chinese telecom operator. And the performance of the model will be improved based on data from individual clients.

Hong Kong, December 11, 2013 — Moody’s Investors Service has assigned a definitive A2 rating to the credit-enhanced  bonds issued by China Merchants Land Limited (unrated).

The bonds are supported by an irrevocable standby letter of credit from  the Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia,  A2/P-1/C-, stable(multiple)).

The company says it will use the money to expand to Japan and South Korea, the biggest markets in the world by revenue for Google Play developers. It’s already opened up a development studio in Seoul. The focus will remain on Android.

Closer Look: Jingdong Gives Alibaba Some Company in Financial Industry Jingdong may be a latecomer to the competition, but its ambitions are no less  aggressive than Alibaba’s. It has less expertise and experience running an  e-shopping website and third-party payment services than Alibaba, but it has an edge in logistics management.

The difference explains why Jingdong did not start with wealth management  services for individual online shoppers the way Alibaba did when it set out to  explore Internet finance as a new driver for growth. Instead, it targeted the  logistics chain.

Posted from Diigo.

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