China Business Briefs 29/12/13

ECONOMY

China says poor performing SOEs to be ‘severely dealt with’ | 4-Traders China will evaluate the performance of its state-owned enterprises in 2014 and “severely deal with” companies that perform poorly, are continuously loss-making or do not meet safety standards, state news agency Xinhua said on Sunday.

Beijing hopes to move towards a more efficient model for such enterprises where the state retains ownership but management is more focused on getting returns on investment than meeting policy goals.

Tianjin’s car-buying restriction raises doubts – BUSINESS – Editor’s Picks – Globaltimes.cn **Might be a good policy, but has to be introduced properly, and this wasn’t** A newly imposed limit on private car ownership in North China’s Tianjin Municipality has caught citizens unprepared, prompting questions over the rule’s abruptness and necessity.

The Tianjin municipal government announced on December 15 that the city would impose a quota on its new car license plates, requiring residents to obtain a plate through either bidding in auctions or joining lotteries.The policy, part of the city’s efforts to battle congestion and air pollution, took effect only five hours after its announcement at 7pm, touching off panic-buying of both new and second-hand vehicles.

Industrial companies’ profits see sharp drop |China Data |chinadaily.com.cn **Are they over-paying for overseas goods? This is a way to get RMB out the country** The profit growth rate of Chinese industrial companies dropped sharply in November to 9.7 percent year-on-year from 15.1 percent in October, the National Bureau of Statistics said on Friday.

Industrial profits increased 13.2 percent year-on-year from January to November, compared with the 13.7 percent growth seen in the first 10 months of the year, the official data showed.

Protecting Your IP From China Trade fairs are also great places to monitor your own IP to see whether it is being copied in China.  There are far too many stories of US companies going to a trade fair, to see their own product (oftentimes with their own brochures, only slightly revised if at all) sitting on a Chinese manufacturer’s table.  If this should happen to you, do not get mad and do not make a scene.  Rather, use this as an opportunity to try to end the infringement both on the spot and in the future; use it as an opportunity for protecting your IP from China.

China’s railways mileage tops 100,000 km – Xinhua | English.news.cn **Still nowhere near enough** China’s railways network topped 100,000 km in total mileage on Saturday, as several new high-speed rail links started operations ahead of one of the busiest travel seasons next month.

The newly opened links include the Xiamen-Shenzhen railway, Xi’an-Baoji railway, Chongqing-Lichuan railway, and others in southwest China’s Guangxi Zhuang Autonomous Region and have a combined mileage of 2,000 km.

China’s economic reform will be faster than expected: CME Group – People’s Daily Online **Market seems to be forcing the pace** The pace of Chinese economic reform would surprise people, and it will be faster than commonly expected, said Blu Putnam, Chief Economist at Chicago Mercantile Exchange (CME) Group, in London.

China appears to be choosing to accelerate its reforms and increase the pace of economic liberalization with more market-based initiatives, said Putnam in a recent interview with Xinhua.

Space trips open to Chinese travelers |Industries |chinadaily.com.cn **Not to stereotype, but when you see air travel fights like this happen…** Chinese travelers will be able to take space trips by the end of 2014 thanks to an agreement signed on Friday in Beijing between a Chinese travel agency and Netherlands-based space tourism firm Space Expedition Corporation (SXC).

Travelers will pay a minimum of 580,000 yuan ($95,000) to board the Lynx Mark I spacecraft produced by the US private aerospace company XCOR, said Zhang Yong, chief executive officer of Dexo Travel, a Chinese travel agency focusing on high-end travelers.

COMPANIES

Sinopec profit increases more than 10 bln yuan – Xinhua | English.news.cn **No more figures given** Profits of oil giant China Sinopec increased more than 10 billion yuan (1.6 billion U.S. dollars) in the first eleven months.

Huang Shuhe, vice chairman of the State-owned Assets Supervision and Administration Commission (SASAC), said the country’s central state-owned enterprises (SOEs) posted strong performance from January to November.

Ugandans fear curse of oil wealth as it threatens to blight ‘pearl of Africa’ | World news | The Observer The speeding trucks that force us to pull to the sides of the narrow roads, the towering oil rigs and the crews walking around in Total uniforms are a blight on the serenity of the park and a reminder that things may never be the same again. Britain’s Tullow, France’s Total and China’s CNOOC operate in Uganda. Amid criticism of the industry, they emphasise they are doing their part to make sure the country does not turn into another sad oil curse story, and that oil brings prosperity rather than instability and poverty.

Bank of China Limited : BOC Launches Spot Commodity Cross-border RMB Settlement Business | 4-Traders **I assume they mean “Recently” rather than “Lately”** Lately, Bank of China and the Tianjin Bohai Commodity Exchange (“BOCE”) jointly launched the spot commodity cross-border RMB settlement business, which can greatly facilitate RMB’s performance of valuation and trading functions as an international currency in the global bulk commodity market, and accelerate RMB internationalization.

Baidu to Acquire Online Publisher PW Literature for RMB191.5 million Perfect World Co., Ltd., a Chinese online game developer and operator, announced today that it has entered into a definitive agreement to sell Beijing Huanxiang Zongheng Chinese Literature Website Co., Ltd, or PW Literature (Zongheng.com), the entity that operates Perfect World’s Chinese online reading business, to Baidu for a total consideration of approximately RMB191.5 million($32 mn).

PW Literature, launched in 2008, is an online literature platform where readers subscribe to works by freelance writers. It is widely recognized in China that the business model was created by Qidian.com, now a Shanda Cloudary company. Perfect World expected it, apart from being an online literature business, to contribute stories for game development or rights sales.

Bank of China Limited : China : Standard & Poor’s Ratings Services Upgraded Bank of China s Stand-alone Credit Profile | 4-Traders **So no problems then?** On December 15, 2013, Standard & Poor’s Ratings Services announced to upgrade the Stand-alone Credit Profile of Bank of China Ltd (the Bank ) from bbb- to bbb , maintained the Bank’s Counterparty Credit Rating at A/A-1 and Stable rating outlook.

Posted from Diigo.

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