China Business Briefs 13/12/13

Rules on local govt debts to be rewritten |Policy and Regulation |chinadaily.com.cn The Ministry of Finance has begun drafting rules for local governments’ debt regime, a task that is expected to be completed no late than the end of next year.

Having a system to match local government debt – which could increase by 30 trillion yuan ($4.9 trillion) from now to 2020 – with development needs is an indispensable part of the national program to speed urbanization, according to financial specialists close to the ministry.

Hot money distorts China’s exports as speculators seek to cash in on yuan, rate reforms | Reuters November exports rose 12.7 percent on-year, blowing past a Reuters poll that predicted 7.1 percent growth, but many analysts suspect the performance was inflated by speculators moving money into the country through fake trade transactions.

Nomura economist Zhang Zhiwei pointed out in an email to clients that China’s export growth far exceeded that of its Asian neighbors in November, which is unusual.

At the same time, imports grew less than expected and factory output slightly underperformed expectations; all three together form a combination analysts find highly suspicious.

KPMG: Turned Over China Documents to U.S. Regulators – WSJ.com **This isn’t just about accounting, but sovereignty and information flows** The handover is part of a U.S.-China deal reached in May that allows the U.S. access to audit firms’ documents about their Chinese clients, conveyed to the U.S. through Chinese regulators. The agreement was a step toward resolving a standoff over how much China will cooperate with U.S. efforts to oversee Chinese companies, though the pact was nonbinding and didn’t give the U.S. broader access to information it wanted.

Lawsuit accuses IBM of hiding China risks amid NSA spy scandal | Reuters IBM Corp has been sued by a shareholder who accused it of concealing how its ties to what became a major U.S. spying scandal reduced business in China and ultimately caused its market value to plunge more than $12 billion.

IBM lobbied Congress hard to pass a law letting it share personal data of customers in China and elsewhere with the U.S. National Security Agency, in a bid to protect its intellectual property rights, according to a complaint filed in the U.S. District Court in Manhattan.

The prediction is based on the robust economic recovery in the US and trade frictions between China and the EU, Wei told a forum held by the China Chamber of International Commerce in Beijing.

Shanghai’s FTZ to see further reforms – People’s Daily Online China will improve the negative list for foreign investment and ensure operational financial rules for Shanghai’s pilot free trade zone next year, the city’s Vice Mayor Ai Baojun said yesterday.

“Shanghai is aiming to build an international-level free trade zone after two to three years of experiment, which will facilitate trade and investment and allow free exchange of currency in a well-regulated environment,” Ai, who also heads the zone’s management committee, said in a statement.

Guangdong to prioritize 4G mobile networks |Industries |chinadaily.com.cn Guangdong, which is the largest provincial economy in the country, will promote 4G broadband applications with a view to improving performance and productivity.

The improvements will include upgrading manufacturing, public services and the management of government services, Zou said during a press conference. The electronic information industry of the province will receive a boost, he said.

Investors will also be able to buy and sell options on two exchange-traded funds that track the 50 and 180 biggest yuan-denominated stocks in the Shanghai Stock Exchange, the newspaper reported, citing unidentified brokerages. The Shanghai Securities News is operated by the official Xinhua News Agency.
Separately, U.S. alliance partner General Motors Co announced the sale of its 7-percent Peugeot stake and said it would not stand in the way of a deal with Dongfeng, insisting that industrial cooperation with Peugeot remains strong.
Boosted by WeChat, China’s mobile gaming market worth $590M in Q3 Why the sudden burst? After all, smartphones are common in China and have been for a few years already in this pretty mature phone market. iResearch believes that the popular messaging app WeChat is to thank for this mobile gaming explosion, due to the social gaming center that Tencent (HKG:0700), WeChat’s makers, integrated into the app this summer.

Yunnan Tin to Buy Chinese Iron-Ore Mines for $155 Million – Bloomberg China Yunnan Tin Minerals Group Co. (263), a Hong Kong-based mining company, said it plans to buy two open-cut iron-ore mines for HK$1.2 billion ($155 million) after one of its facilities was forced to close after an accident.

The company will pay HK$690 million cash, 1.05 billion new shares and HK$300 million of five-year zero-coupon convertible bonds to Mega Marks Ltd., owner of the mines and an ore-processing plant in western China’s Xinjiang region, according to a Hong Kong stock exchange filing yesterday evening.

Online literature site Cloudary CEO resigns – BUSINESS – Globaltimes.cn Hou Xiaoqiang, CEO of Cloudary Corporation, a Chinese online media company that publishes literature works online, resigned from the position, Hou announced Thursday on his Weibo account.

Hou attributed his resignation to health problems but said he will still be a senior consultant for Cloudary.

Posted from Diigo.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s