China Business Briefs 17/12/13

Shoppers dropping department stores |Industries |chinadaily.com.cn **No wonder. They are painfully inefficient** Department stores in China’s big cities likely will face increasing pressure to be profitable in 2014 due to mounting consumer preference for other retail formats, rising rents and a shifting of growth to lower-tier cities, analysts and market insiders said.

A report by Fitch Ratings put China’s department store outlook in 2014 as “negative” despite an anticipated mild acceleration in sales growth, as stiff competition and customers drawn to other sales channels will continue to challenge the sector’s recovery.

China Adds to U.S. Treasury Holdings – WSJ.com China boosted its holdings by $10.7 billion in October to $1.3045 trillion, according to the latest monthly data released by the Treasury Department on Monday. Foreign investors overall added $24.4 billion in U.S government-debt holdings. China primarily bought T-bills due in one year or less, with $8.4 billion added in the month.

You don’t need to work with this taxonomy for long to discover that it is inadequate. Hybrids abound, and there are a growing number of firms that do not fit neatly into these distinctions.

Last month, state-owned PetroChina became the first Chinese company to announce it had bought CCERs, paying renewables firm Longyuan 16 yuan ($2.62) a piece for 10,000 credits.

Fall in copper futures ends seven-day rise – BUSINESS – Globaltimes.cn The Shanghai benchmark copper contract for delivery in February declined by 0.78 percent on the Shanghai Futures Exchange (SHFE) Friday compared to Thursday, ending at 51,160 yuan ($8,429.59) per ton.

China’s PetroChina receives notice from U.S. court on probe into executives | Reuters **Not just officials being taken down. President Xi’s campaign is claiming numerous ‘tigers’** China’s oil giant PetroChina Co Ltd has received a notice from a U.S. court related to a complaint involving its former and current chairmen on suspected violations of U.S. securities regulations.

PetroChina, which with its parent China National Petroleum Corp has been embroiled in a major corruption probe by Chinese authorities, is unaware of amounts related to the complaint, it said in a filing to the Hong Kong and Shanghai stock exchanges on Tuesday.

Kunlun Energy Chairman Resigns as Government Graft Probe Widens – Bloomberg **”Helping”** Wen Qingshan quit with immediate effect as both chairman and director of the company due to personal matters, Kunlun Energy said in a statement to the Hong Kong stock exchange.

Kunlun suspended its shares following a report in China’s Caixin magazine yesterday that Wen is helping in a government graft probe. Wen was taken into custody to assist with an investigation, a person with knowledge of the matter said today, asking not to be identified as he wasn’t authorized to speak publicly about it.

China Everbright Bank Co. Ltd (SHA:601818) ‘Admits’ To 6.5 Billion Yuan Interbank Loan Default **Was this due to conditions then, or a more systemic problem?** China Everbright Bank Co. Ltd. (SHA:601818), the country’s 11th-largest bank by assets, finally admitted that it had defaulted somewhat on 6.5 billion yuan ($1.07 billion) worth of a loan it was due to repay to another bank back in June.

Shortly after the June 5 liquidity squeeze that sent interbank lending rates soaring to as high as 30 percent, media reports started to circle that Everbright failed to repay a loan borrowed from Industrial Bank Co. Ltd. (SHA:601166) on time because of tight liquidity conditions.Huwei

Tencent’s Ma Becomes China’s Second-Richest Man on WeChat Mania – Bloomberg **Two years ago all the attention was on Sina because of its weibo, but it never made money – too much oversight required. WeChat is I think the first world-class Chinese tech product** Ma Huateng, chairman of Asia’s largest Internet company Tencent (700) Holdings Ltd., overtook property tycoon Wang Jianlin to become China’s second-richest man, according to the Bloomberg Billionaires Index.

Ma has a net worth of $12.1 billion, surpassing Wang by $100 million, according to the daily index. Tencent shares have soared 90 percent this year in Hong Kong trading, compared with a 2.5 percent increase in the benchmark Hang Seng Index.

InterDigital execs threatened with arrest in China | Politics and Law – CNET News **Sometimes you shake your head and wonder** To discuss the matter, the NDRC proposed a meeting with InterDigital CEO Bill Merritt on December 18. Merritt replied that he’d be unavailable that day as he’s scheduled to attend a board meeting, reported Reuters. Instead, he suggested sending some of his key executives, and apparently the NDRC didn’t like that suggestion.

In a letter seen by Reuters, InterDigital said the NDRC told its attorney that it would not ensure the safety of any executives sent in place of Merritt and that they could be arrested or detained. So it’s safe to say that those executives won’t be taking that trip to China.

Although the first Mexican opportunities may go to the major independent oil companies in the U.S. and Europe, Chinese groups such as Cnooc (CEO) and Sinopec (SNP) will actively seek opportunities; Mexico’s president plans to visit Beijing in 2014 and his trip may reveal whether Chinese firms are acceptable partners.

The first chunk of US$35mln has been fully subscribed for by GIC Private Limited, the Singapore sovereign wealth fund, and future issues of the bond will be at the discretion of the company.

Chinese drinks maker Want Want has said it plans to reduce imports to diversify its supply chain, and at least two multinational infant formula sellers have either cut supply from Fonterra or plan to diversify supply for the China market, people in the industry told Reuters.

KFC restaurants in China are still plagued with low sales, as consumers are still in doubt over the safety of their food. To convince consumers that its food is safe, Yum! has taken to social media outlets to promote the safety of its food. The company has also rolled out a mobile app to bring customers back by offering coupons and the option to pay for orders through a mobile device.

The company is to construct an energy-efficient commercial building in Tanzania’s commercial capital, Dar es Salaam. Predictions are it will one of most populated cities in 20 years due to the magnet of natural resources.

Shares in CP Lotus fell 4.3 per cent yesterday while those of Chinese supermarket operator Wumart fell 0.2 per cent in Hong Kong, reflecting dashed hopes of a tie-up that was seen as an example of needed money-saving consolidation in China’s increasingly competitive retail market..

The French carmaker said it would expand its current vehicle line-up to manufacture near-premium sport utility vehicles (SUV) in 2016 with the Chinese group, which has an existing venture with Nissan. Renault owns 43.4 percent of Nissan Motor Co.

ASF Group raises $6.3M for working capital – Proactiveinvestors (AU) ASF’s partners are China Communications Construction Company – third largest construction company in the world, Guangzhou Dredging Co Ltd and China State Construction Engineering Corporation Limited.

Posted from Diigo.

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