Aluminum Corp. of China

China Business Briefs 3/1/14


How China crashed the Nafta party | Kevin P Gallagher and Enrique Dussel Peters | Global development | **Great piece** Looking back, our research shows that China has significantly penetrated many of the new markets opened by Nafta. In a paper published by the Economic Commission for Latin America and the Caribbean, we document the extent to which Chinese products have taken away market share in the US, and how China has begun to take Mexican markets from the US as well.

China official services PMI falls to 54.6 from 56 – MarketWatch **Still decent growth, higher than manufacturing as you’d expect** China’s official nonmanufacturing Purchasing Managers’ Index fell to 54.6 in December from 56.0 in November, according to a statement on Friday from the China Federation of Logistics and Purchasing.

Local-government debt: Counting ghosts | The Economist IN MANY countries, governments struggle to contain their debt. In China, the authorities struggle even to count it. Last August and September, 54,400 auditors fanned out across the country, quizzing local officials, scrutinising their books and inspecting their pet projects in an effort to tally the Chinese government’s liabilities. They went from top to bottom, examining 31 provincial-level governments (which are typically responsible for tens of millions of people), 391 cities (often home to a million or more), 2,778 counties (with populations of hundreds of thousands) and over 33,000 townships (which are typically home to about 10,000 people). Never has so much been audited by so many.

Beijing airport world’s 2nd-busiest |Industries | Beijing Capital International Airport was the world’s second-busiest airport in 2013, serving more than 83.69 million passengers as of Dec 31, an increase of 2.2 percent from 2012, Beijing Youth Daily reported.

The airport ranked No 2 in terms of passenger throughput for the third year in a row, and handled 567,000 flights in 2013, an increase of 1.9 percent compared with 2012.

China LGFV Sells First Dollar Bond as Yuan Borrowing Costs Rise – Bloomberg Shanghai Chengtou Corp. sold the first onshore dollar-denominated bond by a local-government financing vehicle in China as yuan borrowing costs surge.

The funding unit issued $200 million of AAA rated notes with a 3.3494 percent coupon on Dec. 27, according to a statement posted on the website of the Shanghai Clearing House on Dec. 31. The bond was priced to yield 300 basis points more than six-month Libor, the statement said.

Taiwanese-invested business sweating in China’s credit crunch|Markets|Business| Due to the credit crunch at Chinese banks at the turn of the year, many Taiwanese-invested enterprises in China have been forced to resort to underground financiers, driving up the latter’s interest to nearly 200% per annum.

The banking credit crunch has been reflected in soaring banking interest rates. The rate for seven day mortgaged repo loans has climbed to over 8.9% in a single leap. Shanghai’s A-share market has taken a 6.75% decline in 2013.

PwC forecasts sharp increase in IPOs in 2014 – BUSINESS – A-share IPO activities will be robust in 2014 after having been suspended for more than a year, and the number of IPOs is expected to reach 300, a significant increase over 2012, PricewaterhouseCoopers (PwC) said in a report released Thursday.

Among the 300 new listings, 40 are expected to be on the main board of the Shanghai Stock Exchange, with 260 on the small and medium-sized board and the Growth Enterprise Board (also known as ChiNext) of the Shenzhen Stock Exchange, said Frank Lyn, managing partner at PwC China, at a press conference in Beijing.

Shanghai focuses on blue chips, investor confidence |Markets | **Information disclosure is often poor. See the information available here** The SSE said it will diversify products to meet investor demand, improve the structure and quality of listed companies, elevate blue-chip shares, and continue pushing for better information disclosure.

“We could not predict market trends in 2014, but we believe stronger protection of investors will help to improve the user experience and attract more investors,” a top official of the exchange was quoted as saying.

Chen Guangbiao on Buying New York Times: It’s not a Joke -Caijing **That won’t reassure anyone** In an article published on the official Global Times on Friday, Chen said the U.S. knows little about a civilized and open-minded China while New York Times articles about China are hardly fair and objective.

Vice-minister calls for new economic growth model |Economy | China’s current economic growth model is “unsustainable,” and an “updated” style based on innovation must be forged, said deputy finance minister Wang Bao’an.

He characterized the feature of China’s growth model as “high input, high resource consumption, high pollution, high growth” and “low output, low efficiency, low profit, low tech”.

Pimco Sees Dim Sum Refinancing Boom on Cash Crunch – Bloomberg **A nice way of putting it** Pacific Investment Management Co. sees a 2014 boom in issuance outside the mainland by Chinese companies, driven by a record amount of Dim Sum bonds set to expire and a cash crunch in domestic markets.

“A lot of local and Dim Sum bonds are coming up for maturity so there will be a lot of refunding needs,” said Raja Mukherji, the Hong Kong-based head of Asian credit research at Pimco, manager of the world’s biggest bond fund. “Given that onshore rates have been ticking up in China, corporates may choose to go to the offshore bond markets and extend their maturity.”

China Moving Ahead on Water Prices – The changes are part of a wider government reckoning that current state-controlled pricing structures for everything from water to electricity and natural gas are broken. Underpriced resources help Beijing protect its citizens and industries from inflation, but experts say they are contributing China’s environmental woes and long-term concerns about economic sustainability.

Under the plan, the heaviest consumers—or top 5% of households—will pay at least three times the base rate of water. The second tier will pay 1.5 times the base rate, while the lowest tier—roughly 80% of urban households—wouldn’t be affected by the changes, according to the NDRC.

Why Investors are Willing to Take Bold Bet on the Money Burning Taxi App Business? **What about the taxi companies – opening access etc?** Two crucial considerations for venture capitalists in determining whether to invest in a company are team (background, experience, execution power, and complementarity) and direction (market potential, policy and competitors). The investment rounds of domestic taxi apps can be explained from these aspects (source in Chinese).

Local Flavor Returns As China Box Office Sales Boom and Outperform Foreign Films – China Real Time Report – WSJ Local productions powered a 27% rise in China’s box-office sales last year, according to one estimate, as Chinese-made films outdrew foreign movies after losing their top position in 2012.

China’s box office raked in 21.6 billion yuan ($3.17 billion) last year, according to consulting firm Artisan Gateway. That’s compared with 17.07 billion yuan for 2012 and a mere 950 million yuan in 2002, when China first began shaking up its state-run movie houses and started allowing modern theater chains.

Chongqing, Dalian, and Shenyang Offer 72-Hour Visa-Free Stays to Foreign Travelers | China Briefing News **Some kind of progress** In order to take advantage of these new visa-free policies, foreign travelers must hold a valid passport from one of the 51 countries named, a third country visa and tickets to depart the city to a third country or territory within 72 hours. During their layover, foreign travelers are permitted to engage in various activities such as tourism, business, and cultural communication, but are not permitted to travel beyond the administrative regions of Chongqing, Dalian or Shenyang.

Closer Look: The Era of Deifying GDP Growth Is Over. Now What? – In the past, if you asked to what extent the Chinese worshiped GDP growth, this was the answer: it was nothing short of almighty.

But that era is gone. GDP is no longer deified not only because the condition of the environment now weighs heavily in the performance evaluation of government officials. More importantly, the pursuit of high growth rates has become the greatest enemy of real growth.

Building a Foundation – **Sounds like a “Constitutionalist” argument** China has achieved great success from a low base, but the growth will not be sustainable unless institutions supporting innovation are fostered, Daron Acemoglu, an MIT economist and the co-author of Why Nations Fail, said at 4th Caixin Summit on December 19 in Beijing.

Why Nations Fail is based on the assertion that institutions are the key difference between successful and failed nations. Countries that develop political and economic institutions that are “inclusive” to a broad base tend to thrive, the book argues. Countries where power and opportunity are concentrated in the hands of a few have “extractive institutions” and tend to fail.

Shanghai’s housing market extremely robust in 2013 – Xinhua | **”Overheated”, more like** Over the past year, 12.82 million square meters of new homes were sold across the city, up 36.6 percent year on year, Shanghai Uwin Real Estate Information Services Co said in a latest report. They were sold at an average price of 24,177 yuan (3,983 U.S. dollars) per square meter, an annual growth of 7.6 percent.

Sales of new homes by area and costing above 2 million yuan grew by double digits year on year in 2013, while those priced under 2 million yuan rose by single digit, DTZ said after compiling data released by the city’s real estate trading center.

Disclosure rules bring clarity – People’s Daily Online A clearer picture of companies about to go public is emerging with the regulator mandating more complete disclosure from the first group of Chinese enterprises to issue shares under new regulations.

Under IPO rules released by the China Securities Regulatory Commission in November, prospectuses must include updated financial data and supplemental information about developments that occur after companies submit financial reports to IPO reviewers.

Concern expressed over rising debt risk – BUSINESS – Lian Ping, Shanghai-based chief economist at Bank of Communications, told the Global Times Thursday that it is highly risky for the central government to allow LGFVs to borrow money to ease liquidity shortages.

“This is an emergency measure [for] when a large-scale debt problem has occurred,” Lian said. “If the borrowing activities are not scrutinized closely, however, the burden of local government debt will definitely become heavier.”

Turning the Table on Museum Displays, Chinese Huanghuali Wood Furniture Gets a Chance to Shine – China Real Time Report – WSJ In 1996, Christie’s held a major sale of Chinese furniture in New York. More than 100 tables, chairs, screens, boxes and cabinets from the Ming and Qing dynasties were put up for auction, setting sales records and sending a clear signal of the strength of the market.

Auction successes mean more public attention—and that in turn translates into greater public interest.


Ping An to launch mobile financial services platform – BUSINESS – Ping An Insurance (Group) Company of China, the world’s second-largest insurer by market value, plans to officially launch its mobile financial services platform before the upcoming Spring Festival, which falls on January 31 this year, news portal reported Thursday.

The platform, dubbed “Yiqianbao,” mainly features online payment and social networking services and users can manage their money, and even their daily life, said the report, citing a New Year’s address by the company’s chairman Ma Mingzhe to his employees.

China sets up group for rare-earth production – MarketWatch Rare-earth production quotas, mining permits and other policies will be coordinated in China by a new group, the state-run Economic Information Daily newspaper said in a report on Friday.

Rare-earth producers Inner Mongolia Baoutou Steel Rare-Earth Group Hi-Tech Co. Ltd. (600111.SH), China Minmetals Corp., Aluminum Corp. of China, Ganzhou Rare Earth Group Co. Ltd., Guangdong Rising Nonferrous Metal Co. Ltd. and Xiamen Tungsten Co. Ltd. (600549.SH) are included.

Chinese Firm Linked to CNPC Suspected of Fraud in Iraq – “We would like to inform you that you should suspend all the activities of your company with Hermic especially the contract of water pipeline 24,” Hussain wrote, without giving any reason.

MOC is a state-owned Iraqi oil company. In May 2010, CNOOC signed a technical service contract (TSC) with the Missan oil block in southeastern Iraq. About four months earlier, another Chinese oil giant, China National Petroleum Corp. (CNPC) also won a TSC with Halfaya oilfield owned by MOC.

China Mobile’s Costly iPhone Deal with Apple – Digits – WSJ Since Apple confirmed the deal with China Mobile, brokerages have been swiftly reducing their earnings forecast for the world’s largest carrier by subscribers  because of steep capital outlays for a new network and anticipated handset subsidies. The carrier will also have to contend with lower interconnection fees from rivals as of Jan. 1 as part of the Chinese government’s latest effort to promote competition.

China No. three smartphone maker aims to double sales target in 2014 – Yahoo!7 China Wireless Technologies Ltd, the country’s third biggest smartphone maker by sales, plans to double its sales target this year, the latest budget Chinese handset maker eyeing a windfall in the world’s largest mobile phone market.

The Chinese firm, the parent of Coolpad smartphone-maker Yulong, aims to ship 60 million units, including 40 million 4G phones, it said on its official microblog late on Thursday.

Why I’m Not Worried About iPhone Pre-Orders in China Telecom Corporation Limited (ADR) (CHA) | Next iPhone News In a market that buys more smartphones than the U.S. has people, 100,000 phones is just a small drop in the bucket. It’s also the number of pre-orders China Mobile Ltd. (ADR) (NYSE:CHL) took for Apple Inc. (NASDAQ:AAPL)‘s latest iPhones in its first two days of availability, according to Wedge Partners. The largest wireless carrier in the world took fewer early pre-orders than its smaller competitors, China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) and China Telecom Corporation Limited (ADR) (NYSE:CHA) – 120,000 and 150,000, respectively.

Perhaps the China Mobile Ltd. (ADR) (NYSE:CHL) deal isn’t as major as people thought. I’m not really worried about it, though.

New Bagamoyo port to restore town’s lost glory Further, Tanzania has already signed a framework agreement with China Merchants Holding International Co. Ltd. to carry out the construction of the port as well as the railway network leading to it and the special economic zone. The total amount of these three parts could total more than 10 bn US Dollars.

Chinese Car News | Auto Brands to Watch in the Chinese Market in 2014 | China Car Times – China Auto News But let’s not focus on the big brands in 2014, we should look at other brands beyond the headline grabbers that we have seen over 2013.

China’s Demohour rakes in millions in series A funding round Chinese crowdfunding site Demohour announced today it has received “millions” of US dollars in funding from Matrix Partners China and Intel Capital, according to Tech 163.

China’s Meituan on course to sell $500M in daily deals per month Extrapolating that $16.4 million daily number, Meituan is close to pulling in $500 million per month in sales revenue. That’s more than double its rate in May 2013, when the company revealed monthly transactions worth $155 million.

Engines spluttering on Dongfeng-Peugeot deal – BUSINESS – The long-stalled Dongfeng-PSA deal finally saw some signs of movement recently. A National Business Daily report said on December 26 that the cooperation between Dongfeng and loss-making French carmaker PSA Peugeot Citroën is expected to start with Dongfeng buying into a PSA research center in Shanghai.

“The two companies are still negotiating the potential purchase,” the report said, citing a source at Dongfeng Peugeot Citroën Automobile Co, the China joint venture set up by the two companies back in 1992.

Yanzhou Discount Widens as Gaming Data Boosts Melco Crown – Bloomberg The Bloomberg China-US Equity Index of the most traded Chinese stocks in the U.S. retreated 1.4 percent to 104.60 yesterday, following a 6.9 percent gain in 2013. Yanzhou Coal Mining Co. (YZC), China’s fourth-largest coal producer, tumbled 9 percent, while China Petroleum and Chemical Corp. slid to a two-month low. Yingli Green Energy Holding Co. surged 24 percent after announcing a joint venture with a state-owned company, and Melco Crown Entertainment Ltd. (MPEL) rose to a record.

Crowdfunding Site DemoHour Secured Millions of Dollars Series A Funding from Matrix Partners and Intel Zhang You, founder of Kickstarter-like crowdfunding site DemoHour booked millions of dollars of Series A funding from Matrix Partners China and Intel (source in Chinese). The capital will be used to develop crowdfunding services for hardware and art, etc, said Zhang.

Launched in July 2011, the site received $500 thousand seed fund from a Taiwanese angel investor in the same year, according to Baidu Baike (a wikipedia-style service in Chinese).

Tencent hits the road to map China’s biggest ‘street view’ Started with just three areas in late 2011, Tencent’s (HKG:0700) street view imagery is now the most comprehensive in China. In a country where Google has not been permitted to roll out its iconic Street View cars, Tencent has filled the void, rolling out camera cars and sending guys with panoramic cameras to cover dozens of cities from all possible angles.

Chinese P2P lending site Dianrong gets funding Chinese peer-to-peer lending service Dianrong raised “tens of millions of dollars” in a series A funding round from Northern Light Venture Capital, according to Kuailiyu.

As of the end of November 2013, more than RMB 100 million ($16.5 million) was lent through Dianrong. Kuailiyu states China’s P2P lending market is worth RMB 20 to 40 billion ($3.3 billion to $6.6 billion) per year and is growing at a rate of 300 percent year-on-year. In 2012, China’s then 200 P2P lending firms handed out RMB 10 billion ($1.65 billion). Other major domestic players include Renrendai, Haodai, PPDai, and Rong360.

Peer-to-peer online platform tries to muscle in on banks’ loan business | South China Morning Post By combining discount loans with a new asset class, a group of former bankers has launched Hong Kong’s first peer-to-peer (P2P) online lending platform.

Dispensing with the cost-heavy model of office branches and sales staff, and by employing cutting-edge risk analysis modelling, P2P platforms match borrowers with individual investors looking for high single-digit percentage returns.

Cost overruns dispute puts Panama Canal project in jeopardy | South China Morning Post Work on the massive Panama Canal extension project may be suspended after a clash between the builders and the Panamanian authorities over US$1.6 billion in cost overruns, according to a statement from the building consortium on Wednesday.

Panama Ports Co, part of Li Ka-shing’s Hutchison Whampoa conglomerate, operates the ports at both ends of the cana

HK IPOs in 2014: What to Look out for This Year -Caijing With Hongkong Electric, AS Watson, Shuanghui, and Alibaba looking to tap HK’s  capital market, this year’s IPO fundraising is expected to grow to CNY200billion  (US$33billion), of which at most CNY120billion is likely to come from two  spin-offs inside Li Ka-shing’s empire.

Why Yingli Green Energy Hold. Co. Ltd.’s Shares Popped Today What: Shares of solar module maker Yingli Green Energy Hold. Co. Ltd. (ADR)  (NYSE: YGE  ) are up 22% today after announcing a new venture in China.

Now what: Most Chinese solar stocks are up big today so there’s a rising tide lifting Yingli along with this news. As for the Shuozhou Coal deal, I think it’s an incremental positive but not a game changer for Yingli. The company still has too much debt and needs to make strong operational improvements to make a profit and that’s what I’ll be looking for in 2014 before buying into this stock.

Analyst: Don’t ‘Over-Exaggerate’ Apple’s China Mobile Deal – Part 2 Based on the assumption that Apple will require a volume commitment of 5 million units in 2014 and that China Mobile will employ a similar subsidy policy as China Telecom and China Unicom, the analyst calculated a total subsidy bill of 10.3 billion renminbi for the full year. He also reminded investors that since China Mobile’s fiscal 2013 budget was only 27 billion renminbi, the additional subsidy burden represents a “meaningful” 36.1 percent year-over-year increase.

Bank of Communications Co Ltd : China’s CPI to expand 2.6% y/y in December | 4-Traders China’s consumer price index (CPI) is likely to accelerate 2.6% y/y in December this year, as compared to an expansion of 3% y/y recorded during the previous month. According to Bank of Communications (BOCOM), the country’s CPI is projected to expand 3% next year, higher than the estimated level in this year.

Yingli Green Energy Announces Joint Venture with Datong Coal Mine Group – PR Newswire – The Sacramento Bee Yingli Green Energy Holding Company Limited (NYSE: YGE) (“Yingli Green Energy” or the “Company”), the largest vertically integrated photovoltaic (“PV”) module manufacturer in the world, known as “Yingli Solar”, today announced that its wholly-owned subsidiary, Yingli Energy (China) Company Limited (“Yingli China”), has entered an agreement (“Agreement”) to establish a joint venture (“Joint Venture”) with Shuozhou Coal Power Co., Ltd.(“Shuozhou Coal Power”), a wholly-owned subsidiary of Datong Coal Mine Group Co., Ltd. (“Datong Coal Mine Group”), which is China’s third largest state-owned coal mining enterprise. The Joint Venture will develop and construct solar power plants in Shuozhou city, Shanxi province.

Posted from Diigo.

China Business Briefs 25/11/13

(Reuters) – Commerce Minister Gao Hucheng denounced the United States as “irresponsible” on Sunday after Washington accused China of jeopardizing a deal that aims to cut tariffs on technology products, saying Washington had disappointed participants in the talks.

U.S. Trade Representative Michael Froman said on Thursday that China’s demands to exempt more than 100 products from a technology trade deal risked leading to a breakdown in the negotiations.

As I see more and more production lines in China equipped with robots and not workers, as I read about the modularization of housing construction and presumably the reduction in needed workers, and as I write about the impact of e-retail in eliminating many physical retail locations and related jobs, I do increasingly wonder where the next wave of jobs is going to come from, and what skills people will require to fill them.

Residents in Heze, a third-tier city in Shandong province, were angered last week after they discovered they would have to turn over their homes to the local government. Officials in Juancheng county are offering a scandalously low compensation rate for land that they plan to clear, add basic utilities to, then turn around to a property developer at a steep profit. Residents there say they refuse to move.

Incidents such as these are commonplace. They occur as local governments, entrusted as the sole purveyor of rural land, look to finance regional development with the proceeds of land sales. However, reforms underfoot may soon edge local governments out of the rural land market.

China Central Television (CCTV) ­reported Sunday that major real estate companies are behind on payments of land value-added tax (VAT) amounting to more than 3.8 trillion yuan ($623.58 billion) for the period between 2005 and 2012.China’s real estate companies should have paid a total of 4.6 trillion yuan in land value-added taxes between 2005 and 2012 but only paid 0.8 trillion yuan, CCTV reported, citing Li Jinsong, a Beijing lawyer and certified tax agent.

An explosion at a China Petroleum & Chemical Corp. (386) oil pipeline and the nation’s deadliest spillage since at least 2005 may threaten the government’s efforts to lure investment to state-controlled industries as President Xi Jinping called for improved industrial safety.

The Nov. 22 accident at the Huangdao district in the eastern city of Qingdao killed at least 52 people, Xinhua News Agency reported. Sinopec, as China Petroleum is known, said yesterday it was still investigating the cause of the blast, which happened after crude oil leaked from a 27-year-old pipeline into Qingdao’s municipal rainwater pipe network.

When Samsung Electronics Co’s Galaxy Gear launch in early September created a hype around the potential market for smartwatches, it was certain that we would soon see cheaper versions from Chinese competitors.

Now, ZTE Corp., mainly known for its telecom equipment but also a smartphone maker, plans to launch a smartwatch in the second quarter of next year, according to Lu Qianhao, head of the Shenzhen-based company’s handset marketing strategy.

Earlier this month Cisco CEO John Chambers admitted in an earnings call that political dynamics were stymieing his company’s long march into Huawei’s backyard.

Asked whether the recent U.S. spying scandal was affecting overseas business, Chambers said it was having an impact, particularly in China, which is Cisco’s biggest emerging market country but represents less than 5 percent of its total revenue.

BEIJING, Nov. 25 (Xinhua) — Shares of Sinopec, China’s top refiner listed in both Shanghai and Hong Kong, opened to tumble on Monday following Friday’s deadly oil pipeline blasts in east China’s Shandong Province.

A-share of Sinopec in Shanghai opened at 4.85 yuan (79 U.S. cents) per share, down 3.96 percent from Friday’s closing price.

A group led by Aluminum Corp. of China has abandoned its bid for Glencore Xstrata Plc (GLEN)’s Las Bambas copper project in Peru, two people with knowledge of the matter said.

Chinalco, as the state-owned aluminum producer is known, decided to drop out rejecting a proposal by the Chinese government that it be a minority partner in a combined bid led by China Minmetals Corp., said one of the people, who asked not to be identified as the deliberations are private.

Mobile device chipmaker Qualcomm Inc. expects to continue growing in China, but Chief Executive Paul Jacobs acknowledged U.S. restrictions on Chinese companies and revelations about surveillance by the National Security Agency are impacting its business in the fast-growing country.

Evergrande bid for a piece of land with 20.84 ㎡building area in Chaoyang  District, Beijing on Thursday for CNY5.14billion, a premium of 30 percent over  the original auction price.

This is the third plot the group bought in the capital city this year,  raising the aggregate investment to CNY12.7billion in its first year marching  into Beijing’s property market.

One of the key questions is if China Mobile and Apple were to announce their partnership would the 200,000 TD-LTE base stations that it plans to have in place by the end of the year, which could handle 4 million active users, be enough for the initial iPhone demand. At least one analyst believes that 10% of China Mobile’s users, or about 76 million, could be potential customers. Note that as of September 2013 Apple has sold a total of 421 million iPhones worldwide since it was launched over six years ago.

The COMAC America Corporation aims to further COMAC’s relationship with local civil aviation authorities, aerospace companies and academic institutions, mainly in areas such as airworthiness certification, civil aircraft development and educational training, said Jin Zhuanglong, chairman of the COMAC.

“Chinese civil aviation market is the No.1 booming market…The fast-growing Chinese civil aviation industry is now becoming an indispensable force to world aerospace industry,” Jin said, adding that China is embracing an era of mass aviation with its remarkable air transport growth.

Muddy Waters NQ Short Call Fails to Freeze Chinese IPOs

Chinese companies are selling shares in New York at the fastest pace in two years less than a month after short seller Carson Block’s call spurred a 62 percent plunge in Beijing-based NQ Mobile Inc. (NQ)

Three Chinese companies have debuted on U.S. bourses this month, raising $345.4 million, the most since May 2011, when six companies listed $1.3 billion of shares. Ltd., an online sports lottery service, raised $75.2 million in an initial public offering. Sungy Mobile Ltd., which makes applications for Google Inc. (GOOG)’s Android software, sold 7 million shares at $11.22. 58.Com Inc. (WUBA), an online marketplace similar to Craigslist, and travel agency Qunar Cayman Islands Ltd. (QUNR) have sold shares above their price targets since Oct. 30.

BEIJING, Nov 22 (Reuters) – As China struggles to rid cities of choking smog, one of the early priorities for Beijing’s economic reforms will likely be to force state-run PetroChina to allow private producers fair access to natural gas pipelines.

Without fair access to the distribution network, independent producers have no incentive to develop the country’s vast gas reserves to their full potential. Already the world’s fourth-largest gas user, China’s leaders want to boost domestic output to accelerate the substitution of cleaner-burning gas for coal to fuel power and heating.

Sina will soon launch a service to enable Weibo users to make online payments on credit, Dai Geng, vice GM of Sina Payments, told Nandu reporter (in Chinese).

Zhong An, the online-only insurance company jointly founded by Alibaba, Tenent and Ping An, will provide coverage for defaults on payments.

Posted from Diigo.

China Business Briefs 23/11/13


Tackling overcapacity is top priority[1]|

China’s top economic planner has pledged to take unprecedented steps to tackle industrial overcapacity as official data suggest the rate of industrial capacity utilization in the first half of the year hit a four-year low.

“Although overcapacity is an old and periodic problem that arises about every five years, it was not as serious before as it is now,” said Li Zhongjuan, an inspector of industrial planning for the National Development and Reform Commission.

China Tolerates Bitcoin, for Now – China Real Time Report – WSJ

Bitcoin – the difficult-to-explain electronic currency – is getting a boost in part from China. Watchers of the nascent market say Chinese interest is fueling a rise in prices, topping $700 in recent days.

That raises a question for those who are familiar with China’s tight grip on its capital markets: What does the central bank think of all this virtual money changing hands?

It looks like the central bank is willing to tolerate it, at least for the time being.

Guangdong to apply for FTZ following Shanghai – BUSINESS –

South China’s Guangdong province has accelerated preparations for its own free trade zone (FTZ) and will apply for approval by the central government as soon as possible, governor Zhu Xiaodan said in Guangzhou Friday.Speaking ahead of an international conference on Guangdong’s economic development, Zhu said field surveys and feasibility studies for the proposed Guangdong-Hong Kong-Macao FTZ have been going on for more than half a year.

China considers pipeline reform to boost gas supply – Yahoo Finance

China’s largest oil-and-gas producer, PetroChina, built andruns nearly three quarters of the 54,000-km natural gas pipelinesystem across China. It controls most of the large,long-distance trunk lines that pipe gas from far-flung fields tofast-growing cities. Other state energy firms – Sinopec and CNOOC – run the remaining trunk pipelines but aremuch smaller operators compared to PetroChina.

Some independent gas producers say PetroChina has imposedunfair conditions on them for access to the grid, erasing theprofit-incentive for boosting output, and others are asking thestate giant for better access.

China set to overtake Japan in this year’s outbound M&A deals – Yahoo Singapore Finance

There is more urgency for Chinese banks to accelerate global growth as the leadership change is poised to precipitate more financial sector reforms, further pressuring margins, bankers said.

Among the Chinese banks on the prowl are Industrial and Commercial Bank of China Ltd (ICBC) and Agricultural Bank of China Ltd (AgBank) , which are in pursuit of two separate deals.

ICBC is in talks to buy Standard Bank Group’s (SBJK.J) London trading unit, while AgBank is considering a bid for Hong Kong’s Wing Hang Bank Ltd , Reuters previously reported.

Intl energy exchange unveiled in Shanghai – BUSINESS –

The Shanghai Futures Exchange (SHFE) Friday unveiled the Shanghai International Energy Exchange in the China (Shanghai) Pilot Free Trade Zone (FTZ), a key step towards crude oil futures listing in China.The global trading platform for energy derivatives was funded by the SHFE with a registered capital of 5 billion yuan ($815 million), so far the largest in the FTZ.

The exchange will be able to operate regulated derivative marketplaces for crude oil, natural gas and other petrochemicals and provide clearing, delivery, information distribution and technology services, said Yang Maijun, head of the SHFE.

Wenzhou announces new finance rules as grey market loans legitimized – Frontpage – CHINA – BUSINESS –

Wenzhou, an entrepreneurial hub in East China’s Zhejiang Province and a pilot area for financial reform in China, unveiled Friday a regulation to legalize underground lending that previously led to a local financial crisis.

It is the first local regulation in China to turn grey-market lending into acceptable credit to support cash-thirsty small firms while reducing financial risks.

Investing in China: Is this the country’s Thatcher moment? – Telegraph

Pictures of China’s futuristic new cities and high-speed railway lines may arouse our admiration, but of far more significance to investors, or   potential investors, in China is last week’s announcement by the ruling   Communist party of far-reaching political changes that have the potential to give the country a decisive push towards a truly capitalist future.

 For the Chinese economy, despite its superficial similarity to those of the free-market West, remains heavily state controlled, with about 70pc of companies owned by the government.

Govt draws up blueprint for e-commerce development |Industries |

China will further boost the development of e-commerce, aiming to bring online retail sales up to 10 percent of the country’s total retail sales by 2015, according to guidelines released by the Ministry of Commerce on Thursday.

China Clarifies the Cultural Undertaking Development Fee under Nationwide Tax Reform | China Briefing News

China’s State Administration of Taxation (SAT) issued the “Announcement on Issues Concerning the Registration and Declaration of the Cultural Undertaking Development Fee under the Value-Added Tax to Business Tax Pilot Conversion (SAT Announcement [2013] No. 64, hereinafter referred to as the ‘Announcement’)” on November 11, which clarifies the registration and declaration issues of the cultural undertaking development fee (CUD Fee) under the nationwide tax reform. Detailed information can be found below.

Under China’s tax regulations, entities and individuals providing advertising services in the country shall pay the CUD Fee. For overseas entities and individuals that provide advertising services in China, but have not set up any operation organization in the country, their advertising agents shall be the withholding agents for the CUD Fee.

China regulator orders more disclosure on shadow bank products: sources | Reuters

(Reuters) – The China Banking Regulatory Commission (CBRC) will require banks to report detailed information on their holdings of wealth management products beginning in 2014, four sources with direct knowledge of the new regulations told Reuters on Friday.

Wealth management products (WMPs) are short-term investment products that Chinese banks market to clients as a higher-yielding alternative to traditional bank deposits. They have become a crucial element of China’s shadow banking system, which analysts warn has contributed to excessive debt growth that has led to a build-up of financial risk.

Chinese Nokia workers pledge to continue strike | Reuters

GUANGZHOU, China (Reuters) – Striking workers at a Nokia factory in southern China on Friday threatened to extend industrial action after the company terminated the contracts of 59 employees for failing to return to work.

Hundreds of employees stopped work on Tuesday, complaining of changes in the wake of Nokia’s sale of its mobile phones business to U.S. software giant Microsoft. The striking workers said they are being forced to sign new contracts with worse terms of employment.


PetroChina’s US unit poised for dream expansion |Companies |

After moving its headquarters from New Jersey to Houston earlier this year, PetroChina International America Inc is primed to expand its trade in oil products, and more importantly, gain a firmer footing in North America by acquiring its own refining facilities.

Since 2005, Li Shaolin, president of PCIA, had run the US operations from New Jersey, but the advantages of Houston – the “Oil Capital of the World” – were too big a draw to resist.

Fosun Pharma Rebounds After Denying Chairman Arrest Rumors – Bloomberg

Shanghai Fosun Pharmaceutical Group Co. (2196), a maker of modern drugs and traditional Chinese medicine, rebounded in Shanghai trading after the company’s parent denied speculation that its Chairman Guo Guangchang had been detained.

SOEs scramble to sell assets[1]|

A number of large State-owned enterprises facing heavy losses are rushing to sell assets to make up for their deficits and avoid getting delisted from the stock market as the end of the year approaches.

However, analysts said that the moves may not be enough to reverse the long-term downturn faced by SOEs in sunset industries, as the companies are also being asked to give up larger shares of their profits and their scale is likely to shrink further.

By the third quarter of the year, seven Shanghai-listed SOEs – China COSCO Holdings Co Ltd, Aluminum Corp of China (Chalco), China Shipping Container Lines Co Ltd, China Shipping Development Co Ltd, China Merchant Energy Shipping Co Ltd, China National Erzhong Group and Huadian Energy Co Ltd – had completed or were preparing the disposal of assets worth 28.4 billion yuan ($4.66 billion).

Norway to join Chinese firm in Iceland oil exploration – Yahoo Finance UK

Norway said it would team up with a Chinese firm to explore for oil offshore Iceland, in a rare cooperation for the two countries since a diplomatic row over the award of the 2010 Nobel Peace Prize to Chinese dissident Liu Xiaobo.

Norway has the right to join an exploration licence with Chinese oil firm CNOOC in the waters between Iceland and Norway’s Jan Mayen island, and Norway’s government decided it should participate.

Chinese app developer Sungy makes strong NASDAQ IPO debut

After being initially priced at $11.22 per share to raise $79 million, once Sungy’s stock started trading it climbed quickly to $14.78 per share at time of publishing at midnight Beijing/Singapore time. Aside from the IPO windfall, Sungy has also made $20 million from a concurrent private placement today, making for a total of about $100 million.

Qoros Automotive Hopes to Lure China’s Car Buyers – China Real Time Report – WSJ

GUANGZHOU, China—China’s Qoros Automotive Co. is betting that China’s drivers will want a new brand they’ve never heard of.
“As a new brand I will expect that there will be things to solve,” Stefano Villanti, head of sales, marketing and product strategy, said Friday on the sidelines of an auto show in the southern Chinese city of Guangzhou. “The critical part is having a very timely response from the market and to react fast.”

35 Killed When New Sinopec Pipeline Explodes in Qingdao –

At least 35 people died in a blast at a new oil pipeline owned by China Petroleum & Chemical Corp. (Sinopec) in the eastern city of Qingdao on November 22. Some 166 were injured.

Officials announced the accident on weibo, the country’s version of Twitter. They said a section of the pipeline broke around 3 a.m., and the blast occurred at 10 a.m. time as workers were repairing the pipe leak

CNPC Scandal Has Links to Oil Fields in Iraq – Caixin

Mi Xiaodong, a former mid-level official at China National Offshore Oil Corp. (CNOOC) was detained by party discipline officials in early October, sources say. The source also said Mi was managing oil business for Zhou Bin, former chairman of Beijing Zhongxu Yangguang Petroleum and Natural Gas Technology Ltd.

Mi, 43, was an official of state-owned CNOOC’s Shenzhen branch. Two companies under CNOOC are in charge of exploration and exploitation of China’s oil resources in the South China Sea. The one for west half of the sea is based in Zhanjiang and the one for the east half if in Shenzhen. Both are in the southern province of Guangdong.

Posted from Diigo.

China Business Briefs 20/11/13

China’s central bank will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading limit, Governor Zhou Xiaochuan said, without giving a timeframe.

The daily range will be widened in an “orderly way” as China seeks to enhance the currency’s two-way flexibility, Zhou wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. The nation will phase out investment caps for both domestic and foreign investors, he added. A ceiling on deposit rates offered by local banks will be gradually removed as well, PBOC Deputy Governor Yi Gang wrote in the book.

China’s National Bureau of Statistics (NBS) plans to revise the current system of measuring the national economy in line with latest international standards, an NBS official said.

The new system will reckon spending on research and development as a form of fixed capital and calculate it into gross domestic product (GDP), NBS vice head Xu Xianchun said in an interview which was available at on Monday.

The ruling party has promised to turn the nation’s current approval-based  system of initial public offerings into a “registration-based” one which is  expected to end a year-long moratorium in the IPO market.

The surprising move will return power to the market as well as investors,  Xiao said Tuesday in a keynote speech at the Caijing Annual Conference 2014.

China’s service trade grew 13.4 percent year on year in the first nine months of 2013 to reach 390.5 billion US dollars, official data showed on Tuesday.According to the Ministry of Commerce, service exports rose 6.8 percent from the same period last year to 146.4 billion dollars, while imports surged 17.8 percent to 244.1 billion dollars.

China’s foreign direct investment in October went up 1.2 percent from a year earlier to $8.4 billion, the Ministry of Commerce said Tuesday.
The first 10 months of this year saw FDI inflow rise 5.8 percent year-on-year to $97 billion, the ministry said. But the number of new enterprises established by foreign investment declined 9.2 percent year-on-year to 18,184.
The GDP of Binhai New Area, a new growth hotspot near the Bohai Bay in north China, is expected to exceed 800 billion yuan (130 billion U.S. dollars) in 2013, a local official said Monday.
Rather than cutting them down to size, as liberals had hoped, President Xi Jinping instead enshrined their position at the commanding heights of the Chinese economy. The “public sector remains the important pillar of the economy”, the Communist party said in its statement published following last week’s plenum.
But that language is deceptive. Reforms in train in China amount to a significant, albeit indirect, challenge to state companies across a range of industries, chipping away at their privileges. The government does not want to eliminate them. Instead, it wants to make them more efficient and more profit-focused – in short, more like private companies.

So far, secondary market activity in Asia has been more of a gradual flow than a wave of deals. But the changing macroeconomic conditions are increasing pressure on GPs – and that could result in more opportunities, particularly in China. Asia’s largest and most attractive market is losing some of its shine, thanks to a sustained slowdown in annual GDP growth and a frozen IPO market that has left GPs holding assets that they need to exit.

“If you could do [secondaries] at this moment – wow,” says Peter Fuhrman, chairman and chief executive of China First Capital. “In this market, some LPs could sell out for 10 cents on the dollar.”

China’s asset bubble increasingly depends on financing from the shadow  banking system. The carry trade – borrowing dollar loans at low interest rates  offshore and converting the loans into yuan, either disguised as foreign direct  investment or export revenue, for lending at a high interest rate – has become a  significant source of funding in the shadow banking system. The recent surge of  land prices in big cities may be due to it.

The rising share of unstable financing for the country’s asset bubble  threatens a chaotic ending. If the bubble suffers a confidence crash or a  receding tide of liquidity, the unwinding of speculative holdings would be  chaotic, causing a hard landing.


The acquisition will provide Alibaba access to Umeng’s tools and data. At the moment, the analytics firm supports Android, iOS, and Windows platforms, and is being used in over 180,000 apps by over 60,000 developers. As Alibaba aspires to enhance its mobile portfolio, Umeng’s resources will give the tech giant yet another channel through which it can reach out to developers.
A senior manager of Aluminum Corp of China (Chalco), the country’s largest smelter of the lightweight metal, has become the latest in a series of high-level executives at central government-administered enterprises to be investigated by Beijing.
Vice-president Li Dongguang was under investigation “by relevant authorities for personal reasons”, Chalco said in a statement to Hong Kong’s stock exchange without elaborating. “The investigation has no relation whatsoever to the company,” it said, adding Li had tendered resignation from his post and that the resignation had no noticeable impact on its production.
The reasons for J.P. Morgan’s voluntary exit from the IPO just weeks before the Chinese bank’s expected debut on the Hong Kong Stock Exchange in December weren’t immediately clear. But it comes as the Wall Street bank grapples with several investigations by regulators, including one by the Securities and Exchange Commission and the Justice Department into its hiring of bankers connected to Chinese officials.
VANCOUVER, Nov 19 (Reuters) – China’s Sinopec Corp  is in serious talks on a site for a potential liquefied natural gas (LNG) export terminal in British Columbia, the province’s Minister of Natural Gas Development said on Tuesday.
LightInTheBox Holding Co. (LITB) plunged 23 percent, leading declines among Chinese stocks traded in New York, after the online discount retailer’s sales forecast trailed analyst estimates.

Chinese firms’ addiction to distressed global assets was back in the spotlight last week, with word that car maker Dongfeng Motor is nearing a deal to purchase struggling French automaker Peugeot. This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage.

But the case marks yet the latest example of a Chinese firm pursuing a global brand fraught with problems, which could quite possibly represent a dead end for Dongfeng if Peugeout is forced to downsize or even close. To avoid such an outcome, Beijing should veto this deal on the grounds that Dongfeng stands to inherit major problems and incur big losses if the partnership goes forward.

In August, Tencent announced that it would out-do rivals Baidu and Qihoo 360 by offering 10 times as much free cloud storage as them. However, the product is so far available only in Chinese. To use it, you have to sign up for a Tencent QQ account and download the latest version of the Tencent Cloud (Weiyun) mobile app. Tencent starts you off with with 1TB of free space, which should be more than enough for most human beings, and increases that number as you fill the space. By contrast, Dropbox offers 2GB of free space and Google Drive offers 15GB. That’s chicken feed to Tencent.

Posted from Diigo.

China Business Briefs 16/11/13

China’s state-owned companies, coddled by cheap credit and sheltered monopolies for years, face a less comfortable future after Communist Party leaders pledged to give market forces a bigger role in the economy.
The nation is likely to ease interest-rate and energy-price controls after the party this week assigned markets a “decisive” role in allocating resources, according to Wang Tao, chief China economist at UBS AG, who formerly worked at the International Monetary Fund. Other reform options include opening more industries to competition from private operators.


The Ministry of Finance (MOF) said Friday that it will issue 20 billion yuan ($3.28 billion) in 50-year book-entry treasury bonds.

The annual interest rate for the bonds is fixed at 5.31 percent, according to a statement posted on the MOF website.

The European Union sees broader access for investment in China as a key issue in negotiations on an agreement that will consolidate 27 bilateral pacts, the head of the EU Chamber of Commerce in China said.

“The more open the market is, the more European investors enter. European companies are very interested in entering the telecommunications, energy, construction, railway and financial service industries in China, if access can be further eased through a bilateral investment treaty,” Davide Cucino, president of the chamber, told China Daily.

BEIJING, Nov. 14 (Xinhua) — China’s electricity consumption, an indicator of economic activity, rose 9.5 percent year on year in October, official data showed on Thursday.

The growth was lower than September’s 10.4-percent rise and August’s 13.7-percent increase, according to data released by the National Energy Administration.

The lack of any mention of financial reforms was one of the biggest disappointments in a generally underwhelming communique released at the end of a pivotal Communist Party meeting in Beijing on Tuesday. The full report from that meeting, published online Friday night, suggests China is planning to shake up the financial sector after all.
China will accelerate interest rate reform and capital account opening while also setting up a system of deposit insurance, according to the 20-page policy document, which didn’t elaborate or set a timetable for the moves.


CHL Makes Bullish Cross Above Critical Moving Average

In trading on Friday, shares of China Mobile Limited (NYSE: CHL) crossed above their 200 day moving average of $53.62, changing hands as high as $53.81 per share. China Mobile Limited shares are currently trading up about 2.9% on the day.


Chinalco Yunnan Copper Resources Ltd (CYU) advises that it has extended the Closing Date of its non-renounceable entitlement offer to eligible shareholders from Monday 25 November 2013 until Monday 2 December 2013. All other arrangements under the Offer remain unchanged. CYU has lodged a Supplementary Prospectus with the Australian Securities and Investments Commission earlier today to record this extension of the Offer timetable.


French carmaker PSA Peugeot Citroen (>> PEUGEOT) is preparing for a possible sale of its Faurecia (>> FAURECIA) components division to accompany a tie-up with China’s Dongfeng Motor Group, several sources with knowledge of the situation said.

The separately listed parts maker has hired an adviser to explore the sale of Peugeot’s 57 percent stake either in the market, or to a private equity fund or industry peer, said the sources, who asked not to be named because the talks are private.

Fitch: G-SIB buffers manageable, Asian bank presence growing – Yahoo Finance

Industrial and Commercial Bank of China’s (ICBC) addition to the annual list of global systemically important banks (G-SIBs) highlights the growing importance of Asia to the global financial system, Fitch Ratings says. With ongoing strategies to expand overseas and moves to internationalise the Chinese yuan, Asian banks could increase their presence on the G-SIB list. We believe the 29 G-SIBs are well positioned to meet planned additional capital requirements.



China Petroleum and Chemical Corporation (SNPAnalyst Report), also known as Sinopec, along with Royal Dutch Shell plc (RDS.AAnalyst Report) is drilling exploration wells in the largely unexplored central China to examine the shale potential in the region.

The belief that China holds the world’s largest shale gas resource has attracted several oil majors including Shell, ExxonMobil Corporation (XOMAnalyst Report), Chevron Corporation (CVX), Eni SpA (E) and Total SA (TOTAnalyst Report) for unconventional gas exploration in the region. Of these companies, Royal Dutch Shell is the first to secure a production sharing contract.

Ping An Insurance (Group) has received regulatory approval to issue up to Rmb26 billion ($4.2 billion) of domestic convertible bonds, according to an announcement on the Hong Kong stock exchange website on Thursday evening.

The company, listed both in Hong Kong and Shanghai, first announced plans for the CB in December 2011 so it has been a long wait. However, the timing of the approval is a bit surprising as observers hadn’t expected the insurer to get the go-ahead from regulators until after Sinopec had issued its planned domestic CB of up to Rmb30 billion.

Posted from Diigo.

China Stock Watch 15/11/13

The major stocks moved strongly upwards today as disappointment with the Third Plenum’s lack of dazzle ebbed. Only two finished down on the day, notably both Hong Kong-based companies Noble Group (down 0.48%) and Jardine Matheson (down 0.38%). Of the risers, Aluminum Corp gained most at 4.56%, while Ping An Insurance also rose strongly, putting on 3.89%. Energy companies Sinopec and CNOOC, buoyed by deals for expansion, also gained, at 2.59% and 2.00% respectively

The Shanghai Composite Index finished the week strongly, up 35.32 points, or 1.68%, at 2,135.83.

Name Price Change Mkt cap
52wk high 52wk low EPS P/E
Sinopec 4.76 +0.12 (2.59%) 554,850.76M 6.39 4.05 CN¥0.62 7.74
ICBC 3.79 0.00 (0.00%) 1.33B 4.53 3.4 CN¥0.74 5.15
China Construction Bank 4.31 0.00 (0.00%) 1.08B 5.19 3.9 CN¥0.85 5.1
Agricultural Bank 2.53 +0.01 (0.40%) 821,729.11M 3.28 2.38 CN¥0.50 5.04
Bank of China 2.8 +0.01 (0.36%) 781,615.74M 3.26 2.48 CN¥0.53 5.27
China Mobile 81.00* +0.85 (1.06%) 1.63B 91.8 74.9 HK$8.14 9.95
Noble Group 1.04 0.00 (-0.48%) 6,892.16M 1.27 0.785 SGD0.04 29.1
China State Construction 3.25 +0.05 (1.56%) 97,500.00M 4.18 2.9 CN¥0.62 5.28
CNOOC 15.28* +0.30 (2.00%) 682,213.12M 17.38 12.04 HK$1.88 8.12
China Railway Construction 5.08 +0.09 (1.80%) 62,674.71M 6.49 3.95 CN¥0.81 6.29
China Railway Group 2.85 +0.04 (1.42%) 60,704.71M 3.38 2.3 CN¥0.44 6.5
SAIC Motor 15.04 +0.15 (1.01%) 165,824.52M 19 11.83 CN¥2.05 7.33
China Life Insurance 14.04 +0.30 (2.18%) 396,836.46M 22.7 12.88 CN¥0.97 14.52
Dongfeng Motor 11.72* +0.20 (1.74%) 100,980.93M 13.26 9.45 HK$1.37 8.57
Ping An Insurance 38.17 +1.43 (3.89%) 302,159.13M 53.27 31.69 CN¥3.45 11.07
China Telecom 3.97* +0.09 (2.32%) 321,301.50M 4.46 3.48 HK$0.26 15.47
China Communications Construction 4.13 +0.06 (1.47%) 66,801.66M 5.79 3.8 CN¥0.81 5.1
Bank of Communications 4.03 +0.05 (1.26%) 299,278.80M 5.68 3.68 CN¥0.84 4.78
Jardine Matheson 52.29 -0.20 (-0.38%) 16,000.74M 70 51.02 4.59 11.4
Aluminum Corp. of China 3.9 +0.17 (4.56%) 52,745.50M 5.38 3.01 -CN¥0.42

Over the week, eight stocks rose, two were static and ten fell. Ping An Insurance come out the winner, rising 5.3% over the week, while Noble Group showed the largest fall, down 2.8%. Sinopec and China Telecom were flat.



China Stock Watch 11/11/13

A stronger day for Chinese stocks, with fifteen rising and only three declining in value. The biggest risers were Noble Group (up 1.91%), and (oddly enough) both China Railway Group (up 1.79%) and China Railway Construction (up 1.60%). Only Sinopec, Bank of Communications and Aluminum Corp of China fell, with the largest decline seen by Aluminum Corp of China, which closed down 1.53%.

The Shanghai Composite Index also closed up, albeit marginally by 3.34 points, or 0.16%, rising in the afternoon after being down all morning.

There is much talk of the fate of the state-owned enterprises (SOEs) during the Third Plenum. We can forget about seeing a “Big Bang” of state divestment. The Russian example of the early 1990s provides a chilling reminder of how not to do it. The collapse of the Soviet Union is always much in the minds of the Chinese leadership.

Name Price Change Mkt cap
52wk high 52wk low EPS P/E
Sinopec 4.76 -0.02 (-0.42%) 554,850.76M 6.39 4.05 CN¥0.62 7.74
ICBC 3.84 +0.02 (0.52%) 1.35B 4.53 3.4 CN¥0.74 5.22
China Construction Bank 4.33 +0.02 (0.46%) 1.08B 5.19 3.82 CN¥0.85 5.12
Agricultural Bank 2.55 0.00 (0.00%) 828,224.98M 3.28 2.38 CN¥0.50 5.08
Bank of China 2.79 0.00 (0.00%) 778,824.25M 3.26 2.48 CN¥0.53 5.25
China Mobile 81.45* +0.95 (1.18%) 1.64B 91.8 74.9 HK$8.14 10
Noble Group 1.07 +0.02 (1.91%) 7,070.06M 1.27 0.785 SGD0.05 23.42
China State Construction 3.24 +0.01 (0.31%) 97,200.00M 4.18 2.9 CN¥0.62 5.26
CNOOC 15.48* +0.20 (1.31%) 691,142.60M 17.38 12.04 HK$1.88 8.23
China Railway Construction 5.09 +0.08 (1.60%) 62,798.09M 6.49 3.95 CN¥0.81 6.3
China Railway Group 2.84 +0.05 (1.79%) 60,491.71M 3.38 2.3 CN¥0.44 6.48
SAIC Motor 14.78 +0.08 (0.54%) 162,957.87M 19 11.83 CN¥2.05 7.2
New China Life Insurance 22.02 +0.01 (0.05%) 68,692.42M 32.36 17.63 CN¥1.46 15.07
Dongfeng Motor 11.42* +0.14 (1.24%) 98,396.09M 13.26 9.36 HK$1.37 8.35
Ping An Insurance 36.25 +0.17 (0.47%) 286,960.15M 53.27 31.69 CN¥3.45 10.51
China Telecom 3.97* +0.06 (1.53%) 321,301.50M 4.46 3.48 HK$0.26 15.47
China Communications Construction 4.15 +0.02 (0.48%) 67,125.15M 5.79 3.8 CN¥0.81 5.13
Bank of Communications 4.13 -0.01 (-0.24%) 306,705.07M 5.68 3.68 CN¥0.84 4.9
Jardine Matheson 52.7 +0.29 (0.55%) 16,126.20M 70 51.02 4.59 11.49
Aluminum Corp. of China 3.87 -0.06 (-1.53%) 52,339.77M 5.38 3.01 -CN¥0.42

China Stock Watch 8/11/13

Yesterday’s gains instantly vanished, in what was probably a swift bout of profit-taking and awareness that the rises were not market-driven. Only one stock rose, SAIC Motor climbing 0.14%. The largest fallers were New China Life Insurance (2%) and Aluminum Corp of China (1.99%). The four major banks were unscathed, with ICBC, China Construction Bank, Agricultural Bank, and Bank of China all flat on the day.

Name Symbol Price Change Mkt cap
52wk high 52wk low EPS P/E
Sinopec 600028 4.78 -0.01 (-0.21%) 557,182.07M 6.39 4.05 CN¥0.62 7.77
ICBC 601398 3.83 0.00 (0.00%) 1.34B 4.53 3.4 CN¥0.74 5.21
China Construction Bank 601939 4.32 0.00 (0.00%) 1.08B 5.19 3.82 CN¥0.85 5.11
Agricultural Bank 601288 2.55 0.00 (0.00%) 828,224.98M 3.28 2.38 CN¥0.50 5.08
Bank of China 601988 2.8 0.00 (0.00%) 781,615.74M 3.26 2.48 CN¥0.53 5.27
China Mobile 941 80.60* -0.70 (-0.86%) 1.62B 91.8 74.9 HK$8.14 9.91
Noble Group N21 1.04 -0.02 (-1.88%) 6,937.29M 1.3 0.785 SGD0.05 23.03
China State Construction 601668 3.23 -0.02 (-0.62%) 96,900.00M 4.18 2.9 CN¥0.62 5.24
CNOOC 883 15.24* -0.20 (-1.30%) 680,427.22M 17.38 12.04 HK$1.88 8.11
China Railway Construction 601186 5.01 -0.03 (-0.60%) 61,811.09M 6.49 3.95 CN¥0.81 6.2
China Railway Group 601390 2.79 -0.02 (-0.71%) 59,426.72M 3.38 2.3 CN¥0.44 6.36
SAIC Motor 600104 14.7 +0.02 (0.14%) 162,075.83M 19 11.83 CN¥2.05 7.17
New China Life Insurance 601336 22.01 -0.45 (-2.00%) 68,661.22M 32.36 17.63 CN¥1.46 15.06
Dongfeng Motor 489 11.26* -0.08 (-0.71%) 97,017.51M 13.26 9.36 HK$1.37 8.24
Ping An Insurance 601318 36.1 -0.45 (-1.23%) 285,772.72M 53.27 31.69 CN¥3.45 10.47
China Telecom 728 3.91* -0.06 (-1.51%) 316,445.57M 4.47 3.48 HK$0.26 15.25
China Communications Construction 601800 4.15 -0.05 (-1.19%) 67,125.15M 5.79 3.8 CN¥0.81 5.13
Bank of Communications 601328 4.15 -0.01 (-0.24%) 308,190.32M 5.68 3.68 CN¥0.84 4.93
Jardine Matheson J36 52.41 -0.85 (-1.60%) 16,037.46M 70 51.02 4.59 11.43
Chinalco 601600 3.94 -0.08 (-1.99%) 53,286.48M 5.38 3.01 -CN¥0.42

The Week’s Movers
On a poor week (where the Shanghai Composite Index fell 43.44 points, or 2.02%), only three stocks moved ahead, while a full fifteen fell. Sinopec rose by an impressive 5.75%, while Jardine Matheson (of Kong Kong) did worst, falling 3.94%.


Name Monday Price Friday Price Change Change%
Sinopec 4.52 4.78 0.26 5.75
Noble Group 0.99 1.04 0.05 5.05
China Construction Bank 4.3 4.32 0.02 0.47

Stayin’ Steady:

Name Monday Price Friday Price Change Change%
Agricultural Bank 2.55 2.55 0 0
China Communications Construction 4.15 4.15 0 0


Name Monday Price Friday Price Change Change%
Jardine Matheson 54.56 52.41 -2.15 -3.94
China Telecom 4.03 3.91 -0.12 -2.98
New China Life Insurance 22.68 22.01 -0.67 -2.95
Ping An Insurance  37.15 36.1 -1.05 -2.83
China Railway Group 2.87 2.79 -0.08 -2.79
China Railway Construction 5.14 5.01 -0.13 -2.53
Aluminum Corp. of China 4.04 3.94 -0.1 -2.48
SAIC Motor 15.05 14.7 -0.35 -2.33
China State Construction 3.3 3.23 -0.07 -2.12
CNOOC 15.52 15.24 -0.28 -1.8
Dongfeng Motor 11.38 11.26 -0.12 -1.05
Bank of Communications 4.19 4.15 -0.04 -0.95
Bank of China 2.82 2.8 -0.02 -0.71
ICBC 3.84 3.83 -0.01 -0.26
China Mobile 80.65 80.6 -0.05 -0.06

China Stock Watch 7/11/13

As we saw in yesterday’s business briefs, with the third plenum of the Communist Party coming up (November 9-12), there has been a push to drive up the stock market to show the leadership is a good steward of the Chinese economy. This might be good news for investors, but continued government interference with publicly-listed companies (though the state often owns the parent groups) for petty political reasons does not augur well. Readers in any doubt how hard-wired the party is, even private companies, should read Richard McGregor’s excellent The Party: The Secret World of China’s Communist Rulers.

Of the day’s stocks, fourteen showed a rise, with five falling and SAIC Motor static. Of the risers, China Communications Engineering and Dongfeng Motor did best, rising 1.68% and 1.61% respectively. It’s unlikely this has anything to do with company performance. Jardine Matheson was the worst performer of the top twenty, falling 0.45% on news of subsidiary Jardine Cycle & Carriage having a 13% decline in revenues and a 31% fall in profits.

Name Symbol Price Change Mkt cap (RMB)
52wk high 52wk low EPS P/E
Sinopec 600028 4.78 +0.06 (1.27%) 557,182.07M 6.39 4.05 CN¥0.62 7.77
ICBC 601398 3.83 +0.03 (0.79%) 1.34B 4.53 3.4 CN¥0.74 5.21
China Construction Bank 601939 4.33 +0.04 (0.93%) 1.08B 5.19 3.82 CN¥0.85 5.12
Agricultural Bank 601288 2.55 +0.02 (0.79%) 828,224.98M 3.28 2.38 CN¥0.50 5.08
Bank of China 601988 2.8 +0.02 (0.72%) 781,615.74M 3.26 2.48 CN¥0.53 5.27
China Mobile 941 81.30* +0.05 (0.06%) 1.63B 91.8 74.9 HK$8.13 9.99
Noble Group N21 1.07 +0.01 (0.95%) 7,070.06M 1.3 0.785 SGD0.05 23.47
China State Construction Engineering 601668 3.25 +0.01 (0.31%) 97,500.00M 4.18 2.9 CN¥0.62 5.28
CNOOC 883 15.46* -0.04 (-0.26%) 690,249.67M 17.38 12.04 HK$1.88 8.23
China Railway Construction 601186 5.04 -0.01 (-0.20%) 62,181.21M 6.49 3.95 CN¥0.81 6.24
China Railway Group 601390 2.81 +0.01 (0.36%) 59,852.72M 3.38 2.3 CN¥0.44 6.41
SAIC Motor 600104 14.69 0.00 (0.00%) 161,965.57M 19 11.83 CN¥2.05 7.16
New China Life Insurance 601336 22.48 +0.20 (0.90%) 70,127.41M 32.36 17.63 CN¥1.46 15.38
Dongfeng Motor 489 11.36* +0.18 (1.61%) 97,879.12M 13.26 9.36 HK$1.37 8.32
Ping An Insurance 601318 36.57 -0.04 (-0.11%) 289,493.31M 53.27 31.69 CN¥3.45 10.6
China Telecom 728 3.98* -0.01 (-0.25%) 322,110.83M 4.54 3.48 HK$0.26 15.52
China Communications Engineering 601800 4.21 +0.07 (1.69%) 68,095.64M 5.79 3.8 CN¥0.81 5.2
Bank of Communications 601328 4.16 +0.01 (0.24%) 308,932.93M 5.68 3.68 CN¥0.84 4.94
Jardine Matheson J36 53.26 0.24 (-0.45%) 16,297.56M 70 51.02 4.59 11.61
Aluminum Corp. of China 601600 4.03 +0.04 (1.00%) 54,503.69M 5.38 3.01 -CN¥0.42

China Stock Watch 6/11/13

A poor day for China’s biggest publicly-traded companies, with sixteen out of twenty closing down. Only Sinopec, China Mobile, Noble Group, and CNOOC emerged unscathed. The biggest loser was SAIC Motor, down 3.29%, while the other major auto manufacturer, Dongfeng Motor, fell 2.78%. Sinopec came out the winner with an increase of 2.16%, thanks to buying more than 6m of its own shares. (With the Communist party leadership meeting shortly, it wants a rising stock market to illustrate its claims of good economic stewardship).

Name Symbol Price Change Mkt cap
52wk high 52wk low EPS P/E
Sinopec 600028 4.72 +0.10 (2.16%) 550,188.10M 6.39 4.05 CN¥0.62 7.67
ICBC 601398 3.81 -0.02 (-0.52%) 1.34B 4.53 3.4 CN¥0.74 5.18
China Construction Bank 601939 4.29 -0.02 (-0.46%) 1.07B 5.19 3.82 CN¥0.85 5.07
Agricultural Bank 601288 2.53 -0.03 (-1.17%) 821,729.11M 3.28 2.38 CN¥0.50 5.04
Bank of China 601988 2.78 -0.03 (-1.07%) 776,032.77M 3.26 2.48 CN¥0.53 5.24
China Mobile 941 81.30* +0.90 (1.12%) 1.63B 91.8 74.9 HK$8.13 10
Noble Group N21 1.05 +0.01 (0.96%) 7,003.68M 1.31 0.785 SGD0.05 23.25
China State Construction 601668 3.25 -0.05 (-1.52%) 97,500.00M 4.18 2.9 CN¥0.62 5.28
CNOOC 883 15.50* +0.06 (0.39%) 692,035.57M 17.38 12.04 HK$1.88 8.25
China Railway Construction 601186 5.05 -0.12 (-2.32%) 62,304.59M 6.49 3.95 CN¥0.81 6.25
China Railway Group 601390 2.81 -0.06 (-2.09%) 59,852.72M 3.38 2.3 CN¥0.44 6.41
SAIC Motor 600104 14.7 -0.50 (-3.29%) 162,075.83M 19 11.83 CN¥2.05 7.17
New China Life Insurance 601336 22.28 -0.29 (-1.28%) 69,503.50M 32.36 17.63 CN¥1.46 15.25
Dongfeng Motor 489 11.20* -0.32 (-2.78%) 96,500.54M 13.26 9.36 HK$1.37 8.2
Ping An Insurance 601318 36.6 -0.14 (-0.38%) 289,730.79M 53.27 31.69 CN¥3.45 10.61
China Telecom 728 3.99* -0.03 (-0.75%) 322,920.15M 4.54 3.48 HK$0.26 15.56
China Communications Construction 601800 4.15 -0.04 (-0.95%) 67,125.15M 5.79 3.8 CN¥0.81 5.13
Bank of Communications… 601328 4.16 -0.03 (-0.72%) 308,932.93M 5.68 3.68 CN¥0.84 4.94
Jardine Matheson J36 53.5 -0.66 (-1.22%) 16,371.00M 70 51.02 4.59 11.66
Aluminum Corp. of China 601600 4 -0.09 (-2.20%) 54,097.95M 5.38 3.01 -CN¥0.42