China Business Briefs 20/12/13

ECONOMY

PBoC acts to ease China cash crunch fears – FT.com The Chinese central bank has made an emergency money injection after a surge in interbank rates, trying to prevent a repeat of the cash crunch that rattled global markets earlier this year.

In a highly unusual move, the People’s Bank of China said it had conducted a “short-term liquidity operation” to provide credit to banks in need of money.

China’s Money Rates Climb, Stocks Slide as Cash Crunch Deepens – Bloomberg The seven-day repurchase rate, a gauge of liquidity in the financial system, increased 100 basis points to a six-month high of 7.60 percent in Shanghai, according to a daily fixing by the National Interbank Funding Center. It jumped 328 basis points this week, the most since January 2011. Transactions were recorded at rates ranging from 3.8 percent to 10 percent as of 4:17 p.m. local time, with a weighted average of 8.22 percent. The Shanghai Composite Index (SHCOMP) of shares slid 2 percent.

Fed taper comes at ‘delicate moment’ for China[1]|chinadaily.com.cn The United States Federal Reserve Board’s announcement that it will scale back its bond-buying program could crimp liquidity in China at a delicate moment, analysts warned.

China’s interbank lending rate is at its highest since June, when the central bank pushed up rates to discourage borrowing, a move engineered partially to prevent further shadow banking activity, said Patrick Chovanec, managing director of Silvercrest Asset Management Group and former economics professor at Tsinghua University.

China says more state companies might be sold off but Beijing will control major industry – Business – Times Colonist Regulators are working on plans to overhaul ownership following last month’s Communist Party pledge to increase competition in state-dominated industries, said Huang Shuhe, deputy chairman of the panel that controls China’s biggest government companies.

Economists say Beijing must curb the dominance of state companies that control swathes of the economy, from banking to oil to steel production, or risk seeing China’s growth rate plunge. The development blueprint issued last month pledges to open more industries to competition, though it said state ownership will remain the core of the economy.

By H1 2013, 465,600 sets of ATMs had been included in China UnionPay, exceeding the United States (445,000 sets) to rank first in the world. However, by quantity of ATMs per million of persons, China (307 sets, 2012-year) still lagged behind western Europe (786 sets, 2012) and the United States (1,376 sets, 2012).

China Prepares to Give State-Owned Enterprises a Professional Look – Wall Street Journal – WSJ.com China wants reformed state-owned enterprises to pay the government more in dividends, the State-Owned Assets Supervision and Administration Commission said on Thursday.

“We need to improve the management of state-owned capital and raise the proportion of profits that are paid out, commission vice chairman Huang Shuhe told a news conference on Thursday. He didn’t give a timetable for these changes or indicate which state-owned enterprises would become joint stock companies where private-sector investment was encouraged.

Chinese unhappy with price levels: central bank – Xinhua | English.news.cn Chinese urbanites are unhappy with the price of goods and services, a central bank survey showed Thursday.

The People’s Bank of China found in its latest quarterly survey of urban bank users that 61.6 percent thought prices in the fourth quarter were “high and unendurable,” up 1.8 percentage points from the third quarter.

China Pushes Ahead on Deposit-Insurance Plan – WSJ.com China is signaling that it is close to insuring a big chunk of its roughly $17 trillion in bank deposits, a key move toward opening up its financial system but one that carries risks for lenders big and small.

The aim is to reassure depositors that their money is safe as the nation moves to allow more competition in the financial system. That could be bad news for China’s big state-run banks, which already enjoy the implicit backing of Beijing but would have to pay for it under a new deposit-insurance program.

PBOC Adds Funds to Banks Amid Worst Cash Crunch Since June (1) – Businessweek The People’s Bank of China conducted short-term liquidity operations recently and will continue to supply funds to qualified financial institutions in this way based on the situation, it said on its microblog. The announcement did not give details of the size or pricing of the cash injections. The monetary authority injected 200 billion yuan ($32.9 billion), online financial news provider Netease reported, citing an unidentified person.

The average price of new Android phones in China? Just $233 Android is huge in China, with an estimated 270 million actively using an Android phone right now. We know which brands Chinese Android users like to buy, but how much are they spending on each phone? App analytics platform Umeng says it has the answer.

Umeng has observed all the Android phones that appear on its ad network and found that China’s average price of newly sold Android phones is just RMB 1,426, which is $233. The figure comes from data for October, and is the newest available right now.

China’s Online Retailers Look Abroad – WSJ.com Chinese Internet retailers serve what has become the world’s biggest e-commerce market. Their next target: the U.S., and the rest of the world.

Jingdong Corp., a leading Chinese Internet retailer by sales, has logged millions of yuan in sales on its English-language site in the past year, despite almost no advertising, according to the firm. AliExpress, which Alibaba Group launched in 2010 as its overseas platform, is growing rapidly in emerging markets, reaching 700,000 registered users in Russia alone.

Caixin Summit: Regulation of P2P Lending ‘Needs to Improve’ – The government needs to release more detailed supervision guidelines for the booming peer-to-peer (P2P) lending business, experts said at the Caixin Summit, which is being held December 18-19 in the capital.

Ren Yong, founder and chairman of the P2P site Yooli.com, said that due to relatively low market entry requirements and attractive business opportunities, new P2P sites are launching every day, but some of them posed risks to investors.

Gripes over JPMorgan’s commodities sale – FT.com Binding bids were due this week, according to people familiar with the sale process. Companies that have considered bids for some or all of the business included BTG Pactual, the Brazilian investment bank; trading house Castleton Commodities International, which is backed by private equity group KKR; Gunvor, the Swiss-based trading house; and Noble Group of Hong Kong.

“They asked for binding bids, but they’ve given people so little information that a binding bid is subject to due diligence. So it’s not really a binding bid,” said a person familiar with the process.

Warning sounded on taper outflows | South China Morning Post “The normalisation of the US monetary conditions will inevitably heighten market volatility,” warned the Hong Kong Monetary Authority in response to the Fed’s policy. “The Fed’s quantitative easing policy over the past few years has led to large capital inflows to emerging markets. As the US economy gradually recovers, fund flows may reverse, exerting downward pressure on asset prices.”

Beijing vows to boost Bolivia infrastructure – Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns China and Bolivia’s economic cooperation is growing.

Bilateral trade volume reached $516 million in the first eight months of 2013, an increase of 18 percent compared with the same period last year, according to Chinese customs data.

COMPANIES

William Merritt, the chief executive of InterDigital, said in a statement about the final ruling on Thursday, “Today’s determination by the ITC is extremely disappointing. We believe the commission’s claim constructions are plainly wrong, and we look forward to appealing the determination.”
Established in April, 1963, CFHEC is an affiliate of China Communications Construction Company which has 15 years presence in Ethiopian road construction. CCCC major recent road projects in Ethiopia include the Addis Ababa – Adama Expressway and Africa Avenue (Bole Road) projects.

Chinese man gets 3-year prison sentence for attempt to smuggle satellite parts from Colorado – Denver Business Journal According to the indictment, in late 2011, He bought $549,654 worth of radiation-hardened computer circuitry designed for satellites from Aeroflex Colorado Springs, and tried to ship the circuitry to China from Long Beach, Calif., aboard a Shanghai-bound container ship.

The ship was owned by Zhenhua Port Machinery Company Ltd., a subsidiary of the Chinese state‑owned corporation China Communications Construction.

China’s Huawei expects 4G revenue to double to $4 billion in 2014 | Reuters Chinese telecommunications equipment maker Huawei Technologies Co Ltd expects revenue from its 4G mobile network business to double to $4 billion in 2014 compared with this year, a senior executive said on Friday.

The company also expects revenue from the overall wireless market to total $12.9 billion next year, up from $11.7 billion this year, David Wang, president of Huawei Wireless Network, told reporters in Shanghai.

Li Guoqing, CEO and co-founder of Dangdang, said Wednesday on his Sina Weibo account that the board welcomes strategic investment but has no plan to offer the whole company for sale, refuting recent media reports that domestic search engine firm Baidu is likely to acquire Dangdang.

Ping An Insurance to issue $4.27 billion of convertible bonds | Reuters Ping An said in the exchange filing on Tuesday it has appointed China International Capital Corporation Ltd and Credit Suisse Founder Securities Ltd as joint sponsors and joint lead underwriters. Goldman Sachs Gao Hua Securities, Guotai Junan Securities and JPMorgan First Capital Securities are also joint lead underwriters.

The bonds have a term of six years and pay a coupon of 0.8% in the first year, 1.0% in the second year, 1.2% in the third, 1.8% in the fourth, 2.2% in the fifth and 2.6% in the sixth.

Baidu Wants to Go Viral (BIDU, QIHU) Baidu‘s (NASDAQ: BIDU  ) push into security software — a move that seemed born more out of revenge than strategic opportunity — is starting to pay off. China’s leading online search engine revealed yesterday that Baidu Antivirus was named this year’s “most promising antivirus” in Softonic.com’s Big Antivirus Comparison.

Baidu Antivirus placed third overall in system performance, and that’s a pretty notable achievement for the rookie.

CNOOC Limited : China faced most scrutiny in 2012 over investments in U.S | 4-Traders Chinese corporations filed 23 notices with U.S. regulators in 2012, up from 10 in 2011 and nearly quadruple the number in 2010, according to the Committee on Foreign Investment in the United States, or CFIUS.

This compared with 17 notices from companies from the United Kingdom last year, the report said.

China Construction America Buys New York Builder in First U.S. Deal | ENR: Engineering News Record | McGraw-Hill Construction China Construction America Inc., the U.S. arm of China State Construction Engineering Corp. Ltd., is building on its organic growth in the American market with the acquisition of Plaza Construction Corp., New York City.

While CCA has operated in in its Jersey City, N.J. base for 20 years, this is its first U.S. acquisition.

While a number of billion-dollar plus overseas deals have been completed by Chinese SOEs in the energy and natural resource sectors, and large private companies like Wanda and Shuanghui Group have made billion-dollar plus overseas acquisitions, China’s industrial SOEs have been more cautious. SOEs must get numerous approvals from Chinese regulators to invest outside the country, but despite China’s general encouragement for its companies to “go global,” these approvals have not been easy to come by. The complications of managing overseas businesses, plus sluggish business conditions in Europe and the United States, are two of the main reasons.

Everbright Bank Falls in Gray Market After $3 Billion Share Sale – Businessweek Shares of the Beijing-based lender fell 2.5 percent to HK$3.88 at the 6:30 p.m. close of trading, with 1.68 million shares changing hands, according to records of trading arranged by Phillip Securities Group. Everbright Bank sold 5.84 billion shares at HK$3.98 apiece.

China’s 11th-biggest lender by market value joins other banks bolstering their capital through Hong Kong listings ahead of requirements to hold more reserves. Chinese regulators are pushing banks to strengthen their balance sheets as concern mounts that slowing economic growth may lead to an increase in bad debt.

Posted from Diigo.

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