China Business Briefs 2/2/14

Not much news today with the Chinese New Year.

Economy   Finance   Telecoms   Property   Tech   Food

Economy

China’s factories slow down as credit squeeze and holiday disruption kick in | South China Morning Post The decline in January’s PMI was mainly due to the approach of the Lunar New Year holiday, Zhao Qinghe, of the statistics bureau, said.

He said the operating environment for production would improve this year.

High tax, debt, credit system hampering China’s economic transformation|WantChinaTimes.com According to a rough estimate by the All-China Federation of Industry and Commerce, small and medium-sized companies in China are required to pay administrative charges to 18 government departments and 69 schemes. Business owners have therefore called for the government to review all charges at all levels, reign in the introduction of new charges, and have existing charges collected as taxes to improve transparency.

Meanwhile, the ongoing slowdown of China’s economy also highlighted the problem of intertwining debts amongst private businesses, which is now more serious than the slowdown in the 1990s, the newspaper said.

Finance

SparkProfit invites everyone to make predictions on financial markets and rewards good ones with cash Spark Profit is a platform for users, being professionals or not,  to make predictions on financial markets and earn cash rewards. Those who are good at making predictions will receive weekly incomes.

Available on the Web, Android and iOS, Spark Profit is designed to fit into users’ spare time, according to Justin Short, CEO of Nous.net — the Tokyo-based startup behind the service

Telecoms

China Unicom failing to capitalize on opportunities|Economy|News|WantChinaTimes.com The company has invested a lot of resources into attracting new users but paid little attention to its old users, the report said. In one example, a 40-year-old user switched from China Mobile to China Unicom three years ago for a package including an iPhone and the W-CDMA 3G network. But he told the news portal that he has reactivated his China Mobile number for an iPhone and TD-LTE 4G network package.

Many people have switched from China Unicom to China Mobile since Jan. 17, when the latter launched its new 4G iPhone package. Although “the migration” has not happened on a large scale, the trend has definitely sent a warning signal to its rivals China Unicom and China Telecom, the report said.

China allows more private capital in telecoms – Business – Chinadaily.com.cn China’s Industry and Information Technology Ministry (MIIT) on Wednesday granted a second batch of licenses to eight private enterprises for resale of certain mobile services.

The move enables the firms, including commerce retail giants Gome and Suning, to partner and compete with backbone operators through the resale of mobile services, further opening the largely monopolized sector.

Property

Third- and fourth-tier cities in China to see booming realty markets|WantChinaTimes.com The market featured stern control and adjustment in the first half of last year, as evidenced by the rollout of the “five realty regulations” of the State Council in February, as well as higher tax on second-hand house transactions. The control failed to dampen housing prices however, as average transaction price for second-hand houses in Beijing jumped 24.7% year-on-year, to 27,089 yuan (US$4,500) per square meter.

Electronics malls crumbling under online shopping boom in China|WantChinaTimes.com Half of the shops located in two leading malls in Beijing’s Zhongguancun have shut down, even though the area’s name had been well-known even down the stretches of the Yangtze in the past, said Qi Bo, secretary-general of the Chamber of Beijing Zhongguancun Electronic Trade.

Tenants were no longer willing to rent spaces in a mall, despite heavy discounts of up to 50% on rent being offered.

Chinese property developers face downward cycle: Deloitte – BUSINESS – Globaltimes.cn Net profit margin dropped 2.65 percent from 2010, albeit a slight increase of 0.5 percent from 2011. A reduction pattern has emerged for returns on equity, which weakened to 9.98 percent in 2012, against 10.72 percent in 2011 and 11.5 percent in 2010, according to the report.

In 2013, the Chinese mainland property market witnessed a constant increase in volume and prices in top-tier cities, and sufficient demand also continued to provide a shelter for the housing market in tier-two cities against policy risks, said Deloitte China’s Real Estate Managing Partner Richard Ho.

Tech

WeChat banking emerges in China|Economy|News|WantChinaTimes.com Two of the services commonly offered through these banks’ WeChat accounts, the newspaper noted, are a search for branch locations and the ability to make appointments to avoid queues at the bank.

China Everbright Bank’s WeChat service can even recognise a user’s location and send locations of nearby branches to the user’s phone.

WeChat also provides an alternative to the banks’ service hotlines, the newspaper suggested, with some of the banks hiring staff to man the service.

Experts predict Lenovo’s U.S. buys will pass regulatory muster | Reuters U.S. officials are likely to allow China’s Lenovo Group to buy IBM’s low-end server business and Google Inc’s Motorola Mobility handset business if it agrees to concessions aimed at protecting U.S. national security, experts said.

Computer maker Lenovo has advantages over other Chinese companies that should help it overcome the mutual suspicion between the United States and China over industrial spying and cybersecurity, such as its track record of successful U.S. acquisitions in the past. And importantly, it is not directly controlled by China’s government.

Sony denies reports it is in talks with Lenovo on PC business alliance | South China Morning Post Japan’s Sony and China technology company Lenovo are in talks about a possible joint venture to take over Sony’s loss-making Vaio personal computer business overseas, Japanese broadcaster NHK reported on Saturday.

The Japanese electronics and media giant called the report inaccurate while acknowledging that it was looking at various possibilities for the unit.

Food

China renews farm produce pricing mechanism – Business – Chinadaily.com.cn China will sever the link between produce prices and government subsidies to build price mechanism that benefits both both customers and farmers, China’s top economic planner said.

There form will subsidize consumers when the market price is too high while giving farmers allowances when the market price is below the target, the National Development and Reform Commission (NDRC) said in one statement.

Posted from Diigo.

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