China Business Briefs 14/12/13

China to remove price, turnover guidelines for IPOs, details investor participation | Reuters **All very good, but everyone knows the Party will remain deeply integrated** China’s securities regulators issued fresh details on their plans for the resumption of initial public offerings (IPOs) early next year, eliminating pricing and turnover controls for IPOs while detailing how investor participation will be managed.

Beijing is moving to reinvigorate its stock markets to make them more responsive to market forces in order to help lessen Chinese firms’ over dependence on bank loans for fundraising.

The products under investigation are refrigeration products whose technical name is 1, 1, 1, 2-Tetrafluoroethane, primarily used in automotive air conditioning systems.
“The Chinese economy still faces downward pressure next year,” the Central Economic Work Conference pointed out on Friday, citing the capacity issue weighing down some sectors as one of the major challenges facing the world’s second-largest economy.

What a Difference a Year Makes – A Tale of Two Chinese Economic Work Conferences – China Real Time Report – WSJ **Promising start – economically, at least** When outgoing Premier Wen Jiabao attended his last central economic work conference last December, Beijing was preoccupied with housing prices, urbanization and growth. The new management clearly has different things on its mind.

The No. 1 priority in 2012 was “to improve macroeconomic regulation and control to ensure sustainable and healthy development.” That horse has clearly bolted. China’s economic growth is neither healthy nor sustainable, with industrial overcapacity and local government over-indebtedness – both priorities in this year’s document – looming over the nation.

Stop-start: Rising to the Challenge of China’s New Emissions Standards **Think I remember reading that motor exhausts are a small proportion of air pollution – but every little helps** Pollution in China earlier this year reached extreme levels, at one point measuring 40 times the recommended safety levels. With more than 13 million cars sold in China in 2012, vehicles remain a major source of the dangerous pollution levels causing the “airpocalypse” in big cities like Beijing. In response to growing public outrage, the Chinese government passed stringent new fleet-wide fuel economy standards requiring passenger cars to reach 34 miles per gallon (mpg) by 2015, and 47 mpg by 2020.

At the same time, China has an ambitious goal of putting five million electric vehicles (EVs) on the road by 2020. The country has a long way to go to meet that goal. Today, China has only 27,800 EVs on the road, 80 percent of which are buses. In support of reaching its goal, the government offers generous subsidies for buyers of electric passenger vehicles and buses.

Bank of America advises China default contracts to hedge debt storm – Telegraph Bank of America has advised clients to take out default insurance against Chinese debt, warning that monetary tightening by China’s central bank risks   setting off a bout of serious credit stress in 2014.

Bin Yao, the bank’s credit strategist in Asia, said Chinese bond yields have   already risen to the highest in a decade as the authorities seek to rein in rampant growth of the M2 money supply and excess credit, yet markets remain   “complacent” about the implications.

In the first 11 months of the year, overall FAI grew by 19.9% compared with the same period of 2012. But investment by foreign-funded ventures was much weaker, rising just 4.7% in the same period. By contrast, foreign funded FAI grew 14.5% during all of last year.

How Li Qiang Cheers Zhejiang’s Private Spirit – At the center of Zhejiang’s latest economic adjustments is provincial Governor Li Qiang. He’s been pushing for market-boosting reforms since taking office early this year. And although new to the job, Li has won central government support for his efforts to encourage privatization and streamline financing.

China Unicom Releases A Kid Tracking Wristband Smartphone Beijing Branch of teleco China Unicom unveiled a GPS wristband smartphone, which enables parents to keep track of their little kids who are too young to use more complicated smartphones (report in Chinese).

There are only four keys on the wristband, to which parents can set four contact numbers. The product can locate the kids wearing it and update their historical tracks via short messages, Internet or apps. Kids can send SOS alerts in case of emergencies.

New Sanlu seeks to shake off image tainted by scandal[1]| **’Scandal’ putting it mildly** Sanlu Group, a State-owned dairy products company based in Shijiazhuang, capital of Hebei province was the original owner of the brand. At the time, Sanlu was one of the oldest and more popular brands of infant formula in China.

But in 2008, authorities found that melamine, a chemical that creates kidney stones, was added into infant milk powder to make it seem richer in protein during food safety tests.

The tainted milk powder claimed the lives of six infants and sickened tens of thousands of children. The scandal forced Sanlu Group into bankruptcy.

As China’s demand for domestic help grows, Ayibang gets funding **Please, someone get them to change that name** With China’s growing rank of middle classes and ever more hectic urban lifestyles, there’s inevitably a new niche market that needs serving: maids. Part-time domestic helpers are increasingly common in mainland China, and online services are popping up to match cleaners with households. One of these, Ayibang, is a strong contender. Today the startup revealed it has secured series A funding to help grow its platform.

Posted from Diigo.


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