Noble Group

China Business Briefs 18/4/14

Good to be back in Beijing.

Economy Finance Auto Energy Telecoms Property Tech Agriculture Retail

Economy

Closer Look: Signs China’s Economy Transforming Linger behind Latest GDP Figure – What is worth more attention than the growth rate is a change in the economy that other NBS data reflect. In 2013, the tertiary sector’s contribution to total economic output exceeded that of secondary sector for the first time in modern Chinese history.

The latest results showed that services pulled ahead of production and construction even more, with the former accounting for 49 percent of total economic output in the first quarter. Last year tertiary sector’s share of GDP was 46.1 percent.

Many Chinese firms looking overseas: Poll[1]- Chinadaily.com.cn Approximately 60 percent of leading Chinese companies plan to move research and development centers and/or production overseas in the next five years, a study by Strategy& (formerly Booz &Co) and the World Economic Forum said on Wednesday.

That figure roughly doubles the number of Chinese companies that are currently sending these functions abroad, according to the study.

Anti-Dumping The U.S. Trade Representative (“USTR”) announced last week that China, in a follow-up to its December 3, 2013 request for World Trade Organization (“WTO”) consultations, has asked for a dispute settlement panel concerning certain U.S antidumping methodologies. The USTR requests public comments on the issues identified by China in its panel request.

Beijing must stay the course despite the slowdown | China Economic Review If expectations are low, beating them doesn’t mean much. China’s GDP grew by 7.4% year-on-year in the first quarter of 2014, a notch above the market consensus of 7.3%.

But after three months of mainly gloomy economic data, analysts weren’t betting on a powerful punch in overall growth figures. The stats from March alone give reason to believe that China has yet to rebound from a tough start to the year. As for giving the economy a gentle fiscal nudge, Beijing has likely said all it intends to on that matter with some targeted measures in recent weeks. China Economic Review thinks that’s just fine as long as economic reform keeps abreast.

Internationalizing Your China WFOE | China Briefing News In the rush to get into China over the past decade, many foreign investors established WFOEs – either as trading and services companies, or as manufacturing entities in their own right. For many, this is a policy that has worked very well – the legal and regulatory structures are well defined and understood. Today though, as foreign investors start to eye other markets in Asia, the China WFOE is starting to prove awkward as a base from which to launch into Asia. There are a number of reasons for this:

China Resources Chairman Song Lin Faces Probe After Media Charge – Bloomberg Song Lin, whose company is the parent of five Hong Kong-listed units, is being probed for “suspected disciplinary violations,” the Chinese Communist Party’s Central Commission for Discipline Inspection said in a statement yesterday on its website using language that signals a corruption probe.

His company controls China Resources Power Holdings Co., which was accused last year of paying too much for three coal mines in Shanxi province in 2010. The probe is a signal that the Communist Party is intensifying a campaign to root out the corruption that President Xi Jinping has said threatens its six-decade hold on power. Party leaders have promised to target both “tigers and flies,” or cadres up and down the power ladder, over graft.

Bet the Farm, Or Settle for Table Scraps? In this intriguing essay, Shanghai-based consultant Kaiser suggests that for foreign companies, the glory days are over, and the only two strategies left are to either fight for one of the top two positions in your industry (against what might be brutal competition) or accept that your market in China will be modest, picking up what others cannot.

I really enjoyed the essay, because I like contrarian thinking on business in China. But I have a couple of problems right out of the gate.

McKinsey Greater China – Even Chinese SOEs Are Getting Media Savvy **Their websites still suck though** I recall state-owned insurance company announcements as being completely dire in the past. A large semi-lit room, partly filled. Executives sitting at a desk reading a script they didn’t care about to an audience who didn’t really want to be there other than for the drinks available at the end. And always running late.

The new version involved floor to ceiling LCD screens, which projected what was on the screen of the sales agent’s iPad on the stage as she demonstrated an actual sale in real time during the event. The speeches were concise, on time, and delivered with enthusiasm. The back of the room had further iPads so that the journalists could try (and film themselves doing so) the apps.

Disillusioned office workers: China’s losers | The Economist But Mr Zhu considers himself a loser, not a winner. He earns 4,000 yuan ($650) a month after tax and says he feels like a faceless drone at work. He eats at the office canteen and goes home at night to a rented, 20-square-metre (215-square-foot) room in a shared flat, where he plays online games. He does not have a girlfriend or any prospect of finding one. “Lack of confidence”, he explains when asked why not. Like millions of others, he mockingly calls himself, in evocative modern street slang, a diaosi, the term for a loser that literally translates as “male pubic hair”. Figuratively it is a declaration of powerlessness in an economy where it is getting harder for the regular guy to succeed. Calling himself by this derisive nickname is a way of crying out, “like Gandhi”, says Mr Zhu, only partly in jest. “It is a quiet form of protest.”

Finance

How liquidity evaporates from China | South China Morning Post The difficulty of accurately calculating the mainland’s liquidity results from the unknown size of the shadow banking system in which non-banks borrow, lend and invest like a real bank but at market rates and outside the official regulated system. This market is calculated variously as 70 per cent of the mainland’s GDP, or 20 per cent of all credit.

But in reality, no one knows – except that it is significant. This black market has developed to allow market-based funding of smaller enterprises and individuals. It appears strange to have such a tightly regulated banking environment on the mainland when you can game the system so readily.

HEARD ON THE STREET: China’s Citic and the State Share Shuffle – WSJ.com Citic Group, a sprawling state conglomerate, laid out a more ambitious plan last month, with more details unveiled this week. The company will inject its entire $36 billion of assets—including businesses in finance, steel, publishing and more—into Citic Pacific, a Hong Kong-listed unit.

The listed company will pay mainly by issuing shares to the parent, but at a 6.5% premium to where they were trading before the announcement. The new assets will boost return on equity to 13% from 9%, partly because the old listed unit was weighed down by a struggling Australian iron-ore mine.

China eases M&A rules for insurers | Reuters China’s decision to partially relax mergers and acquisition rules in the insurance industry could see global insurance firms expand their footprint in the $288 billion market.

Beijing would allow insurers, including Chinese-based units of foreign insurance firms, to buy stakes in more than one peer that competes in the same market segment, according to a statement on the China Insurance Regulatory Commission’s (CIRC) website and dated last Friday.

RPT-Fitch Affirms Noble Group’s Guaranteed Bonds at ‘AAA(tha)’ | Reuters Fitch Ratings (Thailand) Limited has  affirmed Noble Group Limited’s (Noble; BBB-/Stable) THB2.85bn guaranteed bonds  due 2016 at National Long-Term ‘AAA(tha)’. The bonds, which are guaranteed by  Credit Guarantee and Investment Facility (CGIF), have a Stable Outlook.

Chinese banks are passing the buck | Business Spectator Outstanding non-performing loans soared 19.5 per cent in 2013 from 390 billion yuan ($67 billion) to 467 billion yuan, according to data disclosed by 12 major listed Chinese banks. During the same period, these 12 Chinese banks either transferred or wrote off 102 billion yuan worth of loans, an increase of 206 per cent compared to the same period last year, according to Caixin.

The outstanding non-performing loans of the big five major Chinese banks — the Industrial and Commercial bank of China, Agricultural Bank of China, Bank of China and the Construction Bank of China and Communication Bank of China — increased 16.1 per cent in 2013.

RPT-Fitch Affirms China Life at IFS ‘A+’; Outlook Stable | Reuters Fitch Ratings has affirmed China Life Insurance Company Limited’s (China Life) Insurer Financial Strength (IFS) Rating at ‘A+’.  The Outlook is Stable.

China to Cut Reserve Ratio for Some Rural Banks -Caijing Chinese Premier Li Keqiang Wednesday said reserve requirements would be relaxed for qualifying rural banks in a sign that more loosening policies are likely on the way.

The People’s Bank of China (PBoC) sets different reserve requirements for banks, depending in part on the size of their loan business. The ratio stands at 20 percent for China’s biggest banks, around 16 percent for smaller, rural banks.

Auto

Jaguar Land Rover to recall vehicles in China – Business – Chinadaily.com.cn Jaguar Land Rover Automotive Trading (Shanghai) will recall 1,923 vehicles mainly due to problems with their warning lights, China’s quality watchdog announced on Thursday.

The recall, from April 17, covers 1,909 imported 2014-edition Range Rover vehicles in the Chinese mainland, which were produced from May 7 to Oct. 10, 2013, said the General Administration of Quality Supervision, Inspection and Quarantine.

5.12 Million China Commercial Vehicle Industry Growth in 2017 Forecasts a Research Report | SYS-CON MEDIA According to China Commercial Vehicle Industry Report, 2014-2017 sales volume of China’s commercial vehicles is estimated to register a CAGR of 6% in 2014-2017, and will reach 5.12 million in 2017. The development of the commercial vehicle industry is closely related to the macro economy. In 2013, the growth rate of China’s GDP fell to 7.7%, while commercial vehicle market experienced slow growth at the same time, with output and sales volume increasing by 7.6% and 6.4%, respectively.

Chinese auto brands limp into Beijing show – SFGate **This is not in the Five-Year Plan!** Facing intense competition from General Motors, Volkswagen and other global rivals, local brands such as Chery, Geely and SUV maker Great Wall have suffered shrinking sales and market share this year while China’s overall auto market has grown. That is a blow to Chinese leaders who have made it a national priority to catch up with neighboring Japan and South Korea by creating globally competitive automakers.

Ford to Start Selling Luxury Lincoln Cars in China Lincoln is a late comer to China’s luxury car market, but Robert Parker, president of Lincoln China, said the brand is being introduced here after thorough research.

At Lincoln dealerships, Chinese customers will be greeted with a waterfall, considered auspicious, and their new Lincoln car will have a custom fragrance pleasing to Chinese noses, Parker said.

Energy

China Shenhua Energy Company Limited (HKG:1088) More Than a Coal Company Morningstar analyst Zhao Hu says investors would be wise not to look at China Shenhua Energy Company Limited (HKG:1088) as only a coal story. Even if coal continues to underperform, Hu says China Shenhua’s other businesses will offset the negative impact.

China Shenhua is a little bit different than the other pure-play coal companies we cover primarily because of its vertical integration strategy,” Hu says. “The company recognized the coal sector’s volatility and was able to expand upward and downward into different sectors that include railway transportation, power generation as well as some shipping and port operations.”

CNOOC Limited Filed 2013 Annual Report on Form 20-F – Yahoo Finance CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) announced today it has filed with the United States Securities and Exchange Commission (“SEC”) its 2013 annual report on Form 20-F (“annual report”) that included audited financial statements for the year ended December 31, 2013.

The annual report is available on the Company’s website at www.cnoocltd.com as well as SEC′s website at www.sec.gov.

Sinopec Wins Dismissal Of $5B False Imprisonment Suit – Law360 A California federal judge on Tuesday tossed a Chinese foreign national’s $5.17 billion suit alleging China Petroleum & Chemical Corp., known as Sinopec Corp., colluded with the Chinese government to falsely imprison him, ruling the court did not have jurisdiction over the claims.
U.S. District Judge Beverley Reid O’Connell granted Sinopec’s motion to dismiss the July suit, which accused Sinopec officials of interrogating, threatening and ultimately having Tiangang Sun imprisoned for five years after he sued the company in China for breaching a pipeline contract

Your Industry News – Three International wind power exhibitions to take place in Shanghai in July 2014 **Would hope there is a major Scottish presence at these events. Wind power getting important there as oil declines** The Offshore Wind China Conference & Exhibition, the Wind Farm O&M China Conference & Exhibition and Distributed Generation China will take place concurrently at Shanghai Mart in Shanghai on 2-4 July 2014.

China Money Network − Yingli, Shanghai Sailing To Jointly Launch $160M Renewable Energy Fund New York Stock Exchange-listed Chinese solar panel producer Yingli Green Energy Holding Company Ltd. says that it has signed an agreement with Shanghai Sailing Capital Management to jointly form a renewable energy fund in Shanghai to invest in downstream solar energy projects in China, according to a company announcement.

The joint fund will have an initial size of approximately RMB1 billion ($160 million). Yingli China will commit around 51% of the total capital in several installments through its wholly owned affiliate in China.

PetroChina to Expand Installation of Honeywell Technologies to 30 Plants | Control Engineering Asia PetroChina Company Limited will expand its use of Honeywell advanced information management and process modeling software tools to 17 additional refining and petrochemical sites across China, to help meet the country’s growing demand for chemicals and transportation fuels. PetroChina currently uses Honeywell’s information solutions at 13 locations.

Telecoms

Alibaba unit to offer mobile phone service in China from June – Livemint The service will include voice and third-generation data packages on network capacity leased from all three state-owned carriers, according to Alizila, a website run by Alibaba. The packages will be sold through Alibaba’s Taobao and Tmall sites and can be paid for with Alipay, the company’s e-payment affiliate.

Alibaba, Tencent take rivalry to mobile network services | South China Morning Post Alibaba, the mainland’s biggest e-commerce service provider, said yesterday that it would launch 3G data and voice services in June through subsidiary HiChina, one of 19 companies licensed to operate as a mobile virtual network operator in the country.

The announcement, made through the Alizila website of Hangzhou-based Alibaba, followed reports earlier this month that online retail platform operator JD.com in which Tencent is a major shareholder, would launch its own mobile virtual network operator service next month.

ZTE Q1 profit grows – BUSINESS – Globaltimes.cn ZTE Corp, China’s second-biggest telecommunications equipment maker, said first-quarter profit matched its estimate after benefiting from the country’s introduction of 4G networks.

Net profit rose 204 percent to 622.2 million yuan ($100.01 million) from January to March, compared with an estimated range of 425 million yuan to 637 million yuan, the Shenzhen-based company said on Thursday.

China Unicom profits rise – BUSINESS – Globaltimes.cn China Unicom (Hong Kong) Ltd, the country’s second-biggest mobile carrier by subscribers, posted a 74 percent rise in first quarter net profits, beating estimates, as an increase in data usage offset a slowdown in subscriber growth.
China Unicom said on Thursday net profit from January to March was 3.3 billion yuan, higher than the 1.9 billion yuan in the same period one year ago.

Yahoo Still Set to Get Value From Alibaba After IPO – Bloomberg That’s because Yahoo, which owns about 24 percent of Alibaba, will still have a sizable chunk of the Chinese e-commerce company after it goes public as soon as this year. The Web portal is set to sell about 40 percent of its Alibaba stake in the initial public offering, leaving it with the majority of its holding. Yahoo can hang onto that piece indefinitely if it chooses.

Investors who had bought into Yahoo as a proxy for privately held Alibaba thus may not be tempted to dump the Web company’s shares — at least not right away. For Chief Executive Officer Marissa Mayer, who has relied on Yahoo’s Alibaba stake to boost the company’s share price, that may buy just enough time to accelerate a nascent sales rebound.

Xiaomi looks to steal thunder from OnePlus with launch of mysterious new gadget on same day, April 23 The mysterious device is set to launch on the same day as the OnePlus One, the new brand’s first ever phone. We doubt Xiaomi’s timing is unintentional as the OnePlus One phone is designed to compete with Xiaomi’s flagship phone, the Mi3.

Coolpad obtains fresh funds for 4G smartphone expansion | South China Morning Post Coolpad Group, the third-biggest smartphone supplier on the mainland, is poised to boost its 4G mobile phone development plans and global expansion with new financing worth as much as US$175 million.

Shenzhen-based Coolpad, formerly known as China Wireless Technologies, obtained yesterday a US$107 million, three-year loan facility through a syndicate of mostly Taiwanese banks, according to the firm’s filing with the Hong Kong stock exchange.

Property

Towers where no lights burn at heart of China’s puzzle – FT.com The main reason for the slowdown is a slump in fixed asset investment, the biggest driver of the Chinese economy.

The slide was largely owing to declining real estate investment, which also experienced its weakest growth in more than a decade. The situation is certain to get worse in the coming months as new housing floor space under construction contracted 27.2 per cent in the first quarter.

Why China Needs to Let More Companies Go Bankrupt – China Real Time Report – WSJ China needs to let more companies go bust.

That was the message from several executives at a real-estate conference in Shanghai on Thursday, as the latest string of loan defaults among real-estate developers and a small construction firm have some people talking about bankruptcy more freely.

Tech

China Money Network − Sina’s Weibo Downsized IPO By 21% To $286M Chinese social networking platform Weibo Corporation has raised $286 million by offering 16.8 million American Depository Shares (ADR) at $17 per share. The size of its IPO is 21% smaller than its initial target of of $380 million, according to an announcement.

Weibo gains 5% in Nasdaq trading debut – MarketWatch **I wouldn’t put money on Weibo** Shares in Weibo Corp were last up 5% on Thursday in their trading debut on the Nasdaq after initially dropping. Late Wednesday, the Chinese social-media company raised $286 million by offering 16.8 million U.S.-listed shares at $17, according to Renaissance Capital. That $17 price was at the low end of an expected range of $17 to $19.

As Weibo launches IPO, here are all the facts and stats you need to know In less than an hour, China’s top Twitter-esque social network, Sina Weibo (NASDAQ:WB), will launch its long-awaited IPO. As that happens, let’s look at all the facts and stats you need to know about Weibo.

Chinese graduates deepen hi-tech inroads | South China Morning Post The Chinese for more than a decade have been potent rivals to American and European manufacturers. Now, China is giving Westerners something new to worry about: a generation of workers able to compete in higher-technology endeavours. The aim is to develop service industries and shift from producing simple exports – often assembled from parts made elsewhere – to making a larger share of more sophisticated products.

Agriculture

China Says Nearly One-Fifth of Its Arable Land Is Polluted – WSJ.com **But doesn’t say what constitutes “polluted” or “highly polluted”** Nearly one-fifth of China’s arable land is polluted, China’s environmental ministry said. The new report confirms the worst fears of environmentalists and researchers about the effects of decades of rapid industrialization on the country’s soil.

The release of the report Wednesday shed unexpected light on the scale of China’s environmental problem. Environmental authorities had previously declined to disclose national soil pollution data, calling it a “state secret.”

Retail

China backs away from price controls on basic drugs | Reuters **Healthcare in China is FUBAR** China has backtracked on its policy of capping retail prices on medicines and will allow pharmaceutical companies to set prices for some drugs, after criticism that controls had caused a drug drought that derailed treatment for millions of patients.

Beijing has been struggling with rising healthcare costs, violent conflicts between patients and doctors and medicine safety issues, and President Xi Jinping has said providing affordable, accessible healthcare is a government priority.

Gap sees China sales tripling to $1b in three years – Business – Chinadaily.com.cn The push comes as Gap Inc tries to become less reliant on North America, where it generates 84 percent of its sales. North American sales have cooled of late at Gap Inc’s three major brands, which also include Banana Republic.

 

Posted from Diigo.

China Business Briefs 16/4/14

There won’t be a posting of the business briefs tomorrow, as I am flying to Beijing (in about three hours) for a two week visit. I will try to keep on posting once there, but visits and reunions may take precedence.

I am looking forward to seeing Iain Shaw and co, former staff of the Beijinger (and former colleagues of mine) who are starting up The Cleaver Quarterly, a magazine on Chinese food around the world. Check out their kickstarter thing here if you’re interested.

Economy Finance Auto Infrastructure Energy Telecoms Property Travel Tech Agriculture Retail Healthcare

Economy

China’s first quarter GDP grows 7.4% – Business – Chinadaily.com.cn China’s economy grew 7.4 percent year on year in the first quarter of 2014, the National Bureau of Statistics (NBS) revealed on Wednesday.

The NBS said that preliminary data showed the nation’s gross domestic product (GDP) reached 12.8213 trillion yuan ($2.08 trillion) in the first quarter.

The figures suggest growth in the world’s second-largest economy in the beginning of year 2014 was stable and that the economy was generally in good health, as Chinese authorities promoted reforms, innovation, restructuring and improvement of people’s well-being, according to the NBS.

Chinese incomes continue surging in Q1 – BUSINESS – Globaltimes.cn The average per capita disposable income rose 11.1 percent year on year to 5,562 yuan (908.82 US dollars) in the first quarter. Deducting inflation, the actual growth was 8.6 percent, according to the NBS.

The income gap between urban and rural residents narrowed with the actual income growth in rural China 2.9 percentage points higher than that in its urban areas in the first quarter, according to the NBS.

China’s Economic Growth Slows to Six-Quarter Low After Credit Reined In – Businessweek China’s expansion moderated to the weakest pace in six quarters and property construction plunged, testing leaders’ commitment to keep reining in credit as risks mount of a deeper slowdown.

Gross domestic product rose 7.4 percent in the January-to-March period from a year earlier, the statistics bureau said today in Beijing, compared with the 7.3 percent median estimate in a Bloomberg News survey of analysts. Industrial production and fixed-asset investment trailed projections.

China’s expansion slows as property construction falls | Money | The Malay Mail Online Gross domestic product rose 7.4 per cent in the January-to- March period from a year earlier, the statistics bureau said today in Beijing, compared with the 7.3 per cent median estimate in a Bloomberg News survey of analysts. Industrial production and fixed-asset investment trailed projections.

The weakest first-quarter property-investment growth since 2009 signals credit is tight and demand is faltering, adding to economic and default dangers as Premier Li Keqiang grapples with risks from shadow banking and local-government debt. A deeper slowdown would put pressure on leaders to expand stimulus or limit the pace of changes intended to give market forces a bigger role in the world’s second-largest economy.

Chinese Police Confront Trust Investors Demanding Repayment – Bloomberg Chinese investors demanding their money back from a troubled 973 million-yuan ($156 million) high-yield product in Shanxi province were confronted by police in front of a China Construction Bank Corp. (939) branch.

People wearing white masks with the words “despicable bank” and “pay back our money” were among at least 30 investors facing special-forces officers in dark uniforms in Taiyuan city, about 521 kilometers (324 miles) southwest of Beijing. The nation’s second-largest bank is the custodian of the Songhuajiang River No. 77 trust, which missed six payments as of last month, according to the Economic Observer.

Electricity, Steel Hint at Economic Uptick in China – China Real Time Report – WSJ Official data shows China’s economy in the first quarter grew at its slowest pace in 18 months, but two proxies point to some resilience.

Electricity output—an indicator favored by Premier Li Keqiang over gross domestic product—and crude steel production grew faster in March than in the preceding two months. In addition, steel output in March hit a record high, the National Bureau of Statistics said.

China’s slowing growth potential minefield for leaders – The Globe and Mail Slowing growth presents a potential minefield for Chinese leadership, whose chief concern is maintaining a rising standard of living for its own people. To that end, officials have sought to discount the value of GDP as a measure of well-being, instead deliberately underscoring other statistics. “Maybe a more important thing to look at is employment and income,” said Mr. Sheng. And those numbers still look good. The first quarter saw 3.74-million urban jobs created, slightly more than the year before. Rural income is up 10.1 per cent, while urban salaries swelled 7.2 per cent. At the same time, consumer price index growth of 2.3 per cent has allowed many of those gains to flow in to consumer pockets, rather than back into groceries.

Slowdown curbs Q1 lending activity – Headlines, features, photo and videos from ecns.cn Money supply growth decelerated further in March amid a reform-induced economic slowdown, according to figures released on Tuesday by the People’s Bank of China.

The central bank said that the expansion of M2, a broad measure of money supply, slowed to 12.1 percent year-on-year from 13.3 percent in February. The market consensus was for an increase of 13 percent.

Slower deposit growth, which limits banks’ ability to lend, was a factor. Yuan deposit growth fell to 11.4 percent year-on-year in March from 12.5 percent in February.

Higher-value exporters survive turmoil in market[1]- Chinadaily.com.cn Higher-value Chinese exporters are more immune than low-cost manufacturers in the face of market turmoil from such things as weak demand, exchange-rate fluctuations and rising costs, said exhibitors at the Canton Fair that opened on Tuesday.

China not Currency Manipulator: US Treasury-Caijing “China’s currency yuan, or renminbi (RMB) appreciated on a trade-weighted basis in 2013 but not as fast or by as much as is needed,” the US Treasury said  in the latest semi-annual Report to Congress on International Economic and  Exchange Rate Policies.

According to the report, the yuan appreciated by 2.9 percent against the US  dollar in 2013, and China’s current account surplus declined to 2.1 percent of  gross domestic product (GDP) in 2013, down from 2.3 percent of GDP in 2012 and  from a peak of over 10 percent in 2007.

Yangtze River Delta becomes epicentre for China credit risk | South China Morning Post Suzhou, an ancient city in Jiangsu province 100 kilometres west of Shanghai, lives in legend as one of China’s most beautiful, famous for its elegant gardens and charming canals.

More recently, it became an industrial powerhouse, sitting at the heart of the Yangtze River Delta region that, along with the Pearl River Delta in Guangdong, drove the mainland’s economic boom.

Now it is ground zero for a painful corporate deleveraging that has tacit government approval. A third of all loan delinquencies come from the region, and credit is getting harder to come by.

Finance

Citic Pacific to Pay $36B for Parent’s China Assets – Bloomberg The steelmaker and property developer will pay 49.9 billion yuan in cash and issue almost 16.6 billion shares at HK$13.48 each, according to a Hong Kong exchange filing today. Citic Group Corp. will hold 75 percent of Citic Pacific following the transaction and a share sale by the Hong Kong company, it said.

The transaction comes as Chinese President Xi Jinping advocates the most sweeping changes since Deng Xiaoping’s liberalization in 1978, including loosening yuan trading and allowing more private investments in state businesses. The deal gives Citic Pacific a stake in China’s largest brokerage, as well as banking, energy and infrastructure assets.

China Money Network − S&P Downgrades Fosun International’s Credit Rating Shanghai-headquartered Chinese privately owned conglomerate Fosun International Ltd. has been downgraded by Standard & Poor’s Ratings Services because of the company’s increasing leverage level as a result of its acquisitions, according to a notice issued by S&P.

Fosun’s long-term corporate credit rating is downgraded to BB from BB+ with stable outlook.

BRIEF-Ping An Insurance’s Jan-Mar premium income totalled 108 bln yuan | Reuters Ping An Insurance Group Co of China Ltd

* Says January-March premium income totalled 108 billion yuan ($17.37 billion)

Source text in Chinese: link.reuters.com/tan58v

BRIEF-China Life Insurance’s Jan-Mar premium income totalled about 132.2 bln yuan | Reuters China Life Insurance Co Ltd

* Says January-March premium income totalled about 132.2 billion yuan ($21.25 billion)

Source text in Chinese: link.reuters.com/tet58v

Auto

Volvo likely to become China’s next official car brand: report|Companies|Business|WantChinaTimes.com **I wonder what % of Audi’s revenues come from China** China’s president Xi Jinping, who visited the Chinese-owned Volvo car plant in Ghent, Belgium on April 1 during his European trip, seems to have become the best spokesman for the automobile brand after a photo of him and the Volvo XC60 model was published. Volvo could likely become the new choice for official cars in China, according to the Guangzhou-based Time Weekly.

Infrastructure

SOE accounting puzzle blurs frugality drive – Headlines, features, photo and videos from ecns.cn **Article repeated from Xinhua – evidently CRCC’s arse is being kicked** Many Chinese state-owned enterprises(SOEs) that were under fire last year for exorbitant “reception” fees hid the item in their latest financial results, renewing public concerns over their sincerity to cut extravagance.

China Railway Construction Corporation Ltd. (CRCC), one of the country’s largest construction companies, spent 837.5 million yuan (135.1 million U.S. dollars) on receptions in 2012. The company was punished following public outrage over the alleged abuse of state assets.

In its 2013 financial report released in late March, CRCC canceled the item called “receptions” in its accounting statement. Meanwhile, the item named “management fees,” which included the sub-item “receptions” in the 2012 report, surged by nearly 2.2 billion yuan last year.

World’s longest plateau rail tunnel completed – People’s Daily Online The Xinguanjiao Tunnel, the world’s longest plateau rail tunnel on the Qinghai-Tibet Railway, was completed on Tuesday, local authorities said.

Spanning 32.645 km, the tunnel was finished on Tuesday afternoon, making it the longest rail tunnel in China, according to Zhi Changying, an official with the China Railway Tunnel Co. Ltd. (CRTC), a partner in the project.

Sierra Leone Sports: Bo stadium handed over to Salone « Awoko Newspaper Renowned Chinese company, Xinjiang Beixin construction and Engineering Group Company Limited on Friday April 11th handed over the four thousand seater stadium to government through the Ministry of Sports.

Before the handing over ceremony, one of the Engineers Tai Xie who also doubles as interpreter told Newday that they started the construction of the Stadium on the 25th of December 2008 and they finished the project on 25th December 2013 spanning over a five year period.

Energy

China Natural Gas Output Rises in March to Highest in Two Years – BloombergNatural gas output in the world’s largest energy consumer rose 7.6 percent to 11 billion cubic meters last month, data from the National Bureau of Statistics in Beijing show today. That’s the highest since March 2012. NBS didn’t release output figures for January 2013 because the data was distorted by the Lunar New Year holiday.

The Chinese government sees expanding gas supply as a way to curb air pollution that has frequently exceeded limits recommended by the World Health Organization. The National Energy Administration said in its work plan in January that gas output is forecast to rise 12 percent from a year earlier to 131 billion cubic meters this year.

China State Grid Considers Dollar Issue Amid State-Giant Sales – Bloomberg State Grid Corp. of China, the nation’s largest power distributor, is considering a dollar-denominated bond offering following sales from other government-backed giants.

The company will meet investors in the U.S. and Asia from April 21, according to a person familiar with the matter, who asked not to be identified because the details are private. China Petrochemical Corp., known as Sinopec Group and parent of Asia’s largest oil refiner, raised $5 billion selling securities April 2 in Asia’s biggest dollar bond offering in a decade.

China builds up nuclear power grid – Business – Chinadaily.com.cn “China will install another 800 gigawatts of capacity for nuclear power, about 70 percent of which will use our technology for steam turbines and other key components,” Chen Chaoming, vice-president of Nuclear China-Alstom Thermal, told reporters in Beijing during the 13th edition of Nuclear Industry China, organized by the Chinese Nuclear Society.

“Despite the post-Fukushima delays,” he said, referring to the Japanese disaster of three years ago, “China’s nuclear market has a huge potential for growth. Basically, it is because China’s nuclear industry is still at a nascent stage. Power generated by nuclear plants accounts for less than 2 percent,” he said.

PetroChina Company Ltd.: Notice of Annual General Meeting for the year 2013 NOTICE IS HEREBY GIVEN that an annual general meeting of PetroChina Company Limited (the “Company”) for the year 2013 (the “Annual General Meeting”) will be held at 9 a.m. on 22 May 2014 at Beijing Oriental Bay International Hotel, 26 Anwai Xibinhe Road, Dongcheng District, Beijing.

PLN teams up with Chinese firms on marine project | The Jakarta Post State owned electricity company PT PLN has teamed up with three Chinese companies — Technology Intern Shijiazhuang Enric Gas Equipment Co. Ltd, Ocean Engineering Design & Research Institute of CIMC and PT Enviromate Technology International Cui Li — to develop marine transportation of compressed natural gas (CNG) in Indonesia.

The marine CNG transportation project, which will transport CNG from Gresik, East Java to Lombok, West Nusa Tenggara, via a CNG vessel, is the first project of its kind in the world.

Telecoms

Huawei world’s top communications equipment supplier in 2013|Companies|Business|WantChinaTimes.com Drawing from China’s huge mobile communications market, Huawei became the world’s largest communications equipment supplier in 2013, overtaking Ericsson, according to the Chinese-language CBN Weekly.

The company raked in net profits of US$3.47 billion on sales of US$39.5 billion in 2013, compared with US$1.9 billion and US$35.3 billion for Ericsson. Cisco was third.

Property

China First-Quarter Home Sales Post Decline on Tight Credit – Bloomberg The value of homes sold fell 7.7 percent to 1.1 trillion yuan ($177 billion) in the three months to March from the same period a year ago, the National Bureau of Statistics said today. The last time home value sales dropped in the first quarter was in 2012. New property construction declined to 291 million square meters (3.1 billion square feet) in the quarter.

Is glut developing in retail building sector?[1]- Chinadaily.com.cn Despite a rapid growth in retail sales, less-experienced developers could soon be learning a hard lesson from a market with a supply glut, says a retail property trend report released by Cushman & Wakefield, the world’s largest privately held real estate services company.

The report forecast that the new supply of commercial properties in 30 cities that it monitors will total 75 million square meters, and a peak of new supply with more than 20 million sq m will flood the market this year.

Hoping for Price Rises? Here’s the Harsh Reality, CCTV Tells Home Buyers – China Real Time Report – WSJ China’s latest message about the property market is simple and aimed at the man on the street: The home you’ve bought isn’t a one-way bet. Deal with it.

That message has been pumped out through China’s state broadcaster as part of Beijing’s efforts to curb people’s enthusiasm for homes as an investment tool. Such appetite for property has driven economic growth, but also led to imbalances in the country’s economy and social tension.

Hebei Hopes to Turn Cities into Satellites by Pushing Them into Beijing’s Orbit – The housing market in Baoding heated up after media reports that provincial officials in Hebei want to develop some cities into satellites of Beijing, and Baoding might host some central government offices.

A Hebei official has said the idea is still just that, and that the central government has not approved anything.

However, the plan shows the province is enthusiastic about developing its economy, and has identified problems in the capital – overcrowding, heavy traffic and terrible air pollution – as problems it could use to its advantage.

Travel

WeChat Adds Air Ticket Booking Service | TechNode WeChat’s m-commerce offerings has added flight booking service that is provided by LV.com (formerly 17u.cn), a Chinese online travel service Tencent has a stake in. Payments, of course, are supported by WeChat Payment.

Firms decline to comment on merger rumors – BUSINESS – Globaltimes.cn Ctrip.com International and Qunar.com Inc, two Chinese NASDAQ-listed online travel service providers, both declined to comment Tuesday on market rumors that they will merge in a deal that would create an online travel service giant with a market capitalization of over $10 billion.

The rumors, as reported by China Business Journal over the weekend, claimed that search engine giant Baidu Inc, the majority shareholder in Qunar, will swap its shares in Qunar for Ctrip shares, resulting in Baidu taking a controlling stake in Ctrip.

Sikorsky Helicopter Receives Chinese Nod – Analyst Blog – NASDAQ.com **UK political buffs may remember Sikorsky from the Westland affair** Sikorsky Aircraft Corp., a unit of  United Technologies Corp. (UTX), declared that its S-76D aircraft has received China’s  certification, jumpstarting its delivery to Chinese customers.

The Civil Aviation Administration of China (CAAC) issued a validation type certificate for the helicopters, which will  support expansion of Sikorsky’s operations in a potentially  profitable market and strengthen its foothold in the Chinese market.

Tech

Alibaba Plans Hong Kong-Style Fee as Carrot for IPO Banks – Businessweek Alibaba Group Holding Ltd. is planning to award about one-third of the fees for its initial public offering in the form of incentive bonuses to coax better performance from underwriters, people with knowledge of the matter said.

China’s largest e-commerce company plans to pay at least 1.1 percent of the total IPO proceeds in fees, two people said, asking not to be identified discussing private information. Estimates of Alibaba’s valuation suggest the company could raise as much as $18 billion in the sale, making the potential fee pool almost $200 million. While the e-commerce giant is preparing for an IPO in New York, performance incentives are common in Hong Kong and have been used by companies including Agricultural Bank of China Ltd.

China’s Alibaba sees profit double ahead of long-awaited IPO As the tech world awaits Alibaba’s US IPO, here are some new financial figures to chew on. The Chinese ecommerce juggernaut pulled in US$3.06 billion in revenue in Q4 2014, which is up 66 percent on the same period a year before. Alibaba’s Q4 net income hit $1.36 billion in net income in Q4, which has more than doubled (up 110 percent) from the previous year.

Alibaba’s Q4 numbers were boosted by the popularity of China’s equivalent of Cyber Monday, which happens every November 11. On that day, Alibaba’s Tmall and Taobao marketplaces saw $5.7 billion spent by shoppers in just 24 hours.

Baidu enters China’s mobile payments war with Baidu Wallet Baidu (NASDAQ:BIDU), the Chinese tech giant best known for its search engine, announced yesterday it will roll out a new mobile wallet app called Baidu Wallet (baidu qianbao), reports Jinghua.cn (via Techweb).

Like its main rivals from Alibaba (Alipay) and Tencent (Tenpay and WeChat Payments), Baidu Wallet serves as a Swiss army knife for the average Chinese consumer’s finance needs. By binding bank cards to the app, users can transfer money to friends’ accounts, top up their SIM cards, pay for virtual goods in video games, purchase movie tickets, and buy goods from any vendor that accepts Baifubao, Baidu’s third-party payment solution.

Agriculture

Noble Group to sell stake in agriculture unit for US$1.5b – Channel NewsAsia China’s largest grain trader COFCO Corp will buy a 51 per cent stake in Singapore-listed Noble Group Ltd’s agriculture business unit for US$1.5 billion, Noble said on Wednesday.

The two companies plan to form a partnership that will link COFCO’s grain processing and distribution business with Noble Agri’s agricultural unit.

Noble Group Limited – Did it sell the agriculture business at right price – which of the brokers is right? – Yahoo Singapore Finance After failing to spin off its agriculture business in 2011 it has now again plans for an IPO after divesting majority stake to COFCO. The question still remains whether this segment deserves better valuations.

Retail

An Overview of China’s Retail Industry | China Briefing News Underpinned by the steady rise of household income, China’s retail market has become one of the most lucrative and rapidly growing in the world. China is currently the world’s second largest retail market, and Asia’s largest. It is expected to surpass the U.S. to become the world’s largest retail market by 2016. After years of accelerated growth and annual expansion rates of 10 percent or more, China’s growth in 2013 slowed down to 7.7 percent – level with the figure for 2012. This slowdown in growth is consistent with China’s effort to carry out a major overhaul aimed at weaning its economy off its decades-long reliance on heavy industry, export-oriented manufacturing, state-driven investment, as well as investment in infrastructure. Meanwhile, to rebalance the nation’s economy, policymakers are attempting to shift towards a more consumption- and service-driven model, hoping to foster and sustain more productive growth over the next decade and beyond.

Reaching for the red | China Economic Review This is a characteristic trait seen in previous emerging markets like Japan that eventually opened up their palates to other varieties, notes Guilllame Delglise, CEO of Vinexpo, a global wines and spirits exhibition, but it will take time for the same to happen in China.

In an interview during a recent visit to Shanghai, Delglise, who was previously Asia Pacific director for Laurent-Perrier, also told China Economic Review that officials in Beijing are not inclined to serve champagne to their guests, and explained why that might be good for marketers of bubbly as they chase affluent urban youngsters at fancy nightclubs.

Healthcare

China Money Network − TPG, Fosun’s Privatization Target Chindex Receives Higher Takeover Proposal NASDAQ-listed Chindex International, Inc., the operator of high-end United Family hospitals in China, says the company has received a superior take-private proposal from an unspecified financial bidder, according to a company release.

The new bidder is willing to pay $23 per share for all outstanding American Depository Shares (ADS), valuing the company at around $414 million.

Posted from Diigo.

China Business Briefs 3/2/14

Still not much news out there. Will be interesting to see how the CNY holiday affects the monthly indicators. Such disruption may eventually help reform these awkward bi-annual calculations.

Economy   Finance   Energy   Property   Tech   Agriculture

Economy

China’s official services PMI falls in January – MarketWatch China official nonmanufacturing Purchasing Managers’ Index fell to 53.4 in January from 54.6 in December, the China Federation of Logistics and Purchasing said on Monday.

The services subindex declined to 51.5 in January from 52.5 in December and construction fell to 61.0 from 62.6, the federation said.

Will China’s Cash Squeeze Pinch the Real Economy? – China Real Time Report – WSJ China’s cash squeeze has pushed up interest rates on the domestic interbank market, raised funding costs for the nation’s banks and left many people wondering if this is putting the real economy into lower gear. So far the evidence is inconclusive.

There is proof of slower economic growth. Gross domestic product growth slipped in the final quarter of last year, dropping to 7.7% from 7.8% in the third quarter, and the trend could be continuing into this year. A gauge of factory-level activity–the HSBC Purchasing Managers’ Index—showed contraction in January from December, falling to its lowest level in six months.

Hong Kong bourse expected to ‘open red’ for Year of the Horse | South China Morning Post It is called “open red” if stocks rise on the first trading day of the Lunar New Year, representing good luck. If shares head the other way, it is known as “open black”. And they are tipping a winning start to build momentum for a positive year when the market ends up “in the black”.

Jeffrey Chan Lap-tak, chairman of the Hong Kong Securities Association, is also among those in the industry who believe the market will open red. “The markets fell quite a bit before the Lunar New Year. After the holiday, buying interest should return,” he said. He expects shares in technology and alternative-energy firms and mainland banks to do well.

Finance

China’s insurers look forward to easing of restrictions on investment of funds | South China Morning Post Despite Beijing’s gradual relaxation of investment caps on various assets for insurance funds, regulatory intervention remains a hindrance to the industry, analysts said.

Nonetheless, they expect regulation to become less heavy-handed and the authorities to grant more liberty for insurers on where to invest the funds they manage.

For instance, Chinese insurers were allowed to invest in real estate but barred from residential projects, because of the government’s concern about speculation in property prices, Man said.

Energy

China’s Got A Big Problem, But It Won’t Stop Demanding Energy Moving forward, even if growth continues to slow, energy demand should stay strong. Indeed, people don’t stop using energy when they get too old to work. And, productivity improvements will keep energy demand from industry high, regardless of the size of the workforce. So, even with a shrinking workforce, energy will remain a growth industry in China.

For example, the Energy Information Administration (EIA) projects oil and natural gas consumption to double by 2040 from 2010 levels. And China is expected to account for 70% of the coal demand growth that the EIA is projecting in Asia.

Chinese oil refiners will have to throttle back expansion as capacity races ahead of demand The decision by state-controlled giant PetroChina to put off two new refineries and delay expansion of another is the latest, most dramatic signal that China’s refined fuels capacity has expanded too fast.

While the country will no doubt continue to build refineries, the pace is likely to slow over the next few years, and new units will have to compete with other projects to secure funding.

Mining’s Dormant $8 Billion of Private Equity Seen Reviving M&A – Bloomberg Davis has so far raised $1 billion from Noble Group, Asia’s largest raw-materials trader, and private-equity fund TPG. X2 is targeting mines already in operation or close to producing, said the people, asking not to be identified because the plans aren’t public. A spokesman for X2 declined to comment.

China buys up Russia’s backyard – BUSINESS NEW EUROPE In what must have come as a shock to the Kremlin, during his last stop in Turkmenistan Xi signed off on a $60bn energy investment deal that includes $10bn to develop the massive Galkynysh gasfield which has gas reserves of some 1.3 trillion cubic metres – enough to meet China’s needs for several years. The Turkmen deal makes Gazprom’s deal largely superfluous.

China is clearly on an aggressive westward expansion and trying to spend their accumulated treasure of dollars before anything untoward happens to the currency. Chinese overseas investment rose to $80.2bn in the first 11 months of 2013, the latest data available – more than the $77.2bn that was invested in all of 2012. And outbound investment calculated on the basis of deals closed was up 28.3% in January-November.

Property

Chinese investor buys assets worth $1.9b from Dubai developer Property developer Dubai Pearl sold property assets valued at US$1.9 billion (S$2.4 billion) to a Hong Kong investor, in a sign of increasing Chinese investments to Dubai’s booming property market.

The transaction, which brings to an end a two-year delay in the development of the Pearl project, includes the sale of high-end residences and serviced apartments and two five-star hotels, the company said in an e-mailed statement.

Tech

Lenovo’s ambitious smartphone, server deals fraught with challenges | South China Morning Post Lenovo, the world’s largest supplier of personal computers, announced last Thursday it had agreed to acquire Motorola Mobility from Google for US$2.91 billion, which followed the company’s deal to buy IBM’s commodity server business for US$2.3 billion on January 23.

Despite the optimism expressed by Lenovo’s senior management about simultaneously absorbing two major operations, analysts see the road to integration being fraught with tough challenges.

WeChat got 10 million texts in 60 seconds on Chinese New Year Noting that activity in mainland China peaked from 10PM to to 12AM, WeChat states that it processed 10 million messages in one minute.

That figure dwarfs the one released by Sina Weibo, which stated that it processed 863,000 tweets within a single minute on the same day.

Why Robots Won’t Save China’s Factories – Silicon Hutong The future of Chinese manufacturing, then, lies not in producing consumer products for the world, but in producing consumer products for itself, and, I expect, building the machines that make local, personal production possible.

This will not happen right away: China’s mass-production manufacturers still have a long runway ahead as the world retools. It is also likely that the economies of mass production will continue to be essential for low-cost products for sale to developing nations.

Agriculture

Will China Continue to Drag Down Yum! Brands’ Earnings? (YUM) With KFC a big part of Yum!’s strategy in China, consumer distrust of poultry has the potential to hit Yum!’s China results hard. This couldn’t have come at a worse time for Yum!, with the Chinese New Year holiday, typically a busy period for KFC, beginning on Jan. 31.

2014 may end up being a repeat of 2013 for KFC China, where the chain saw same-store sales decline in the double digits for much of the year. This would destroy the big recovery that analysts are expecting in 2014, and it puts Yum!’s long-term earnings growth goal in jeopardy. Without a stable, safe poultry supply in China, it’s hard to imagine KFC China being successful in the long run.

 

Posted from Diigo.

China Stock Watch 29/1/14

Another day of mostly moderate rises on the back of relief after the non-default – or, more precisely, that default that was paid up for by various institutions, governmental and otherwise. Only two stocks fell on the day: PetroChina fell 0.13% to RMB7.55, while Noble Group lost 0.52% to SG$0.965. China Telecom did best on the day, rising 1.97% to HK$3.63. Close behind was ICBC, up 1.47% to RMB3.44 (as investors breathed a sigh of relief).

The aversion of a default, of course, does not solve any of the problems surrounding the shadow banking industry and the subsequent likely defaults ahead. It speaks of a particular, and deserved, nervousness around the quality of the financial infrastructure in China. The unwillingness to allow, or come to terms with, zombie loans and zombie institutions, to embrace “creative destruction”, is all too reminiscent of the Japanese bubble experience. The relief of the markets may be genuine, but it is also artificially-induced, delaying the reckoning at risk of further infection.

The Shanghai Composite rose to 2,049.91, gaining 11.40 points (+0.56%)

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.5 +0.01 (0.22%) 524,543.91M 7.03 4.05 CN¥0.62 7.32
PetroChina 7.55 -0.01 (-0.13%) 1.38B 9.5 7.08 CN¥0.68 11.17
ICBC 3.44 +0.05 (1.47%) 1.21B 4.53 3.33 CN¥0.74 4.68
China Construction Bank 3.96 +0.03 (0.76%) 990,043.48M 5.19 3.8 CN¥0.85 4.68
Agricultural Bank 2.4 +0.03 (1.27%) 779,505.91M 3.28 2.35 CN¥0.50 4.78
Bank of China 2.52 +0.03 (1.20%) 703,998.67M 3.26 2.45 CN¥0.53 4.75
China Mobile 74.35* 0.00 (0.00%) 1.49B 89.2 74.25 HK$8.21 9.05
Noble Group 0.965 -0.005 (-0.52%) 6,395.13M 1.27 0.785 SGD0.04 26.39
China State Construction 3.04 +0.01 (0.33%) 91,200.00M 4.18 2.9 CN¥0.62 4.94
CNOOC 12.24* +0.08 (0.66%) 546,484.85M 16.52 12.04 HK$1.90 6.45
China Railway Construction 4.16 +0.02 (0.48%) 51,324.17M 6.25 3.95 CN¥0.84 4.94
China Railway Group 2.45 +0.01 (0.41%) 52,184.76M 3.36 2.3 CN¥0.44 5.59
SAIC Motor 13.09 0.00 (0.00%) 144,324.67M 19 11.83 CN¥2.05 6.38
China Life Insurance 13.89 +0.07 (0.51%) 392,596.76M 22 12.88 CN¥0.97 14.37
Dongfeng Motor 11.76* +0.06 (0.51%) 101,325.57M 13.28 9.48 HK$1.38 8.53
China Shenhua 14.06 +0.03 (0.21%) 279,648.07M 25.28 13.97 CN¥2.25 6.25
Ping An Insurance 39.27 +0.11 (0.28%) 310,866.90M 53.27 31.69 CN¥3.45 11.39
China Telecom 3.63* +0.07 (1.97%) 293,784.51M 4.32 3.48 HK$0.26 14.02
China Communications Construction 3.85 +0.02 (0.52%) 62,272.73M 5.79 3.74 CN¥0.81 4.76
Bank of Communications 3.8 0.00 (0.00%) 282,198.36M 5.68 3.65 CN¥0.84 4.51

China Business Briefs 29/1/14

I will be travelling over the next two days and might be unable to blog during that time. My visit to Beijing has generally been very pleasant. Will be back in three months.

ECONOMY

China’s retail investors are leading grassroots financial reform | China Economic Review Grassroots movements bring to mind angry petitioners on the streets or the little man fighting against the big, ugly institution. It doesn’t conjure images of investors handing over their cash to bankers, who then pile that money into real estate or coal projects.

But in China, a grassroots financial movement fomenting off the balance sheet involves just that. And in some ways, it too is the story of a marginalized group of people, depositors, pushing back against an almighty, unmovable force, the People’s Bank of China (PBOC).

Micro-credit firms lent RMB227bn last year: People’s Bank|WantChinaTimes.com China had 7,839 micro-credit firms by the end of last year, which made 227 billion yuan (US$37 billion) in new loans, according to the People’s Bank of China, the country’s central bank.

The total loan balance reached 819.1 billion yuan (US$135.4 billion), according to central bank figures.

China trust deal raises thorny questions – FT.com The last-minute rescue raises a thorny question for the future of the Chinese economy. Has the deal confirmed the widespread belief that the government will do whatever it can to stave off trouble, hence fuelling more risk-taking? Or has the near-default taught investors that high yields come with high risks?

China’s Rescue of Troubled Trust May Stoke Risk-Taking – Bloomberg China’s eleventh-hour rescue of wealthy investors in a high-yield trust threatens to drive more money into the nation’s $6 trillion shadow-banking industry, undermining regulators’ efforts to deter excessive risk-taking.

Industrial & Commercial Bank of China Ltd., the nation’s largest lender, yesterday told customers who had invested in the 3 billion-yuan ($496 million) trust product that they can sell their rights to unidentified buyers to recoup the principal. Some clients plan to visit ICBC branches to demand more interest ahead of tomorrow’s 5 p.m. deadline for accepting the offer, according to Du Ronghai, a Guangzhou-based investor.

China Industrial Profit Growth Further Declines in December: NBS-Caijing Total profits of China’s industrial companies rose 6 percent year-on-year to  CNY942.53 in December, compared with a growth of 9.7 percent a month ago and 17.3 percent a year earlier.

For the full year of 2013, industrial profit rose 12.2 percent year-on-year  to CNY 6.28 trillion, compared with a growth of 5.3 percent in the previous  year.

China’s ‘invisible man’ quits forex role – FT.com Zhu Changhong had been the chief investment officer for the State Administration of Foreign Exchange, the agency that manages China’s $3.8tn mountain of foreign exchange reserves. He left a starring role at Pimco, the world’s largest bond house, to join SAFE in late 2009 and is now expected to return to the private sector, according to two people familiar with his decision.

Trained as a physicist, Mr Zhu earned the “invisible” moniker for his extreme reluctance to make public appearances. He has never given any media interviews, and the only photos of him online are a grainy picture from his student days and an unidentified shot from the time of his return to China.

China yuan weakens to 6.1073 against USD Wednesday – Xinhua | English.news.cn The Chinese currency Renminbi, or the yuan, weakens 20 basis points to 6.1073 against the U.S. dollar on Wednesday, according to the China Foreign Exchange Trading System.

China Further Eases Foreign Exchange Control over Capital Accounts | China Briefing News The State Administration of Foreign Exchange (SAFE) of China promulgated a circular on January 24 to improve and further ease the administrative control over capital account foreign exchange items (Huifa [2014] No.2, hereinafter referred to as “Circular 2”). Circular 2 will enter in to effect on February 10.

The approval procedure for profit repatriation will be simplified and banks will no longer review any transaction documents if the remittance amount is under US$50,000. For remittance of profit over US$50,000, banks in principle do not need to review the audit report and capital verification report; however, they will still check the board resolution on profit distribution and the original tax record-filing documents to verify the authenticity of the transaction.

The Misfortunes of the Big Four in China Overall, the judge’s 112-page ruling on the audit work of the Big Four in China makes for interesting, and at times damning, reading. You can click here to access it.The judge’s decision should probably be required reading for anyone working in Chinese private equity and capital markets transactions with Chinese companies. Investments in Chinese companies worth many tens of billions of dollars rely, at least to some extent, on the accuracy and reliability of Big Four audits. That audit bedrock looks shakier now than it did a week ago.

H7N9 bird flu: Chinese provinces halt live poultry trade | World news | theguardian.com Authorities in eastern China have banned live poultry sales after an increase in the number of people infected with the H7N9 strain of bird flu, state media has reported as the busy Chinese new year travel period gets under way.

So far this year H7N9 has killed 19 people in China and infected 96, according to the official Xinhua news agency, which cited the Chinese Centre for Disease Control and Prevention.

Chinese firms dominate Arab Health Congress 2014|WantChinaTimes.com Chinese companies are the biggest participant in the ongoing Arab Health Congress 2014, the largest health fair in the Middle East and North Africa that started in Dubai on Monday.

Among the 3,900 companies participating in the four-day congress, 510 are from mainland China, 29 are from Hong Kong, while 107 are from Taiwan.

China ends 2013 with a total of 417 million 3G subscribers China’s grand total on 3G at the end of 2013 is a whopping 417.3 million, up from 233.5 million in December 2012; that’s a 78.7 percent rise. Check out the growth from 2010 to the most recent number:

Beijing Urges Steelmakers to Pursue Overseas Iron-Ore Assets – WSJ.com China is urging its steel companies to buy more iron-ore assets abroad amid signs that many have been losing their appetite for such investments.

The National Development and Reform Commission this week said Chinese steelmakers should keep building up stakes in global iron-ore assets in the interests of China’s strategic security and “speaking rights,” or influence, in global trade. China’s ore imports rose 10% last year to a record 819 million metric tons, according to customs data.

Chart Of The Day: How China’s Stunning $15 Trillion In New Liquidity Blew Bernanke’s QE Out Of The Water | Zero Hedge You read that right: in the past five years the total assets on US bank books have risen by a paltry $2.1 trillion while over the same period, Chinese bank assets have exploded by an unprecedented $15.4 trillion hitting a gargantuan CNY147 trillion or an epic $24 trillion – some two and a half times the GDP of China!

UK embraces Chinese investment Chinese interest appears to lie in the future of high speed rail in the UK. China currently has the world’s largest and fastest growing high speed rail network of its own, boasting nearly 6000 miles of track, and may now be turning its attention to the UK’s own aging and oversubscribed railway network. Although Chinese investors will not be placing any direct financing into the construction phase of the new £50bn ‘HS2’ line, Chinese bidding for the concession to operate the new railway or invest in schemes around the route and its stations seems likely. Chinese Premier Li Keqiang noted, following talks with Mr Cameron, that “The two sides have agreed to push for a breakthrough and progress in co-operation in the areas of nuclear power and high speed railway.”

Norway’s sovereign fund halves coal exposure | Reuters Norway’s $817 billion sovereign wealth fund, the world’s largest, has halved its exposure to coal producers, with most of its remaining interest in the sector in Chinese companies, its chief executive said on Tuesday.

COMPANIES

Citic Group Unit May Invest in Trust Product, Morning Post Says – Bloomberg A unit of Citic Group Corp., a Chinese state-backed conglomerate, may take part in bailing out investors in a troubled 3 billion-yuan ($496 million) trust product, Oriental Morning Post reported.

The transaction is under way, the newspaper reported yesterday, citing a person close to Industrial & Commercial Bank of China Ltd. (601398) The person declined to give the name of the unit or the amount it plans to invest, according to the report.

China’s Tencent WeChat App Launches Electronic Hongbao – China Real Time Report – WSJ When China celebrates the Lunar New Year on Friday, millions of red envelopes stuffed with cash are expected to change hands among families, friends and colleagues. But this year, there’s a new spin on this old tradition, with the gift-giving happening right on people’s smartphones.

On Tuesday, Wechat, the social networking and messaging app from Chinese Internet giant Tencent Holdings, launched a new feature that allows users to send these envelopes of money to each other electronically. Givers must first link the app to their bank accounts, then they can send specified amounts of money to their Wechat contacts through a personal message or to put the cash up for grabs in chat rooms full of friends. Receivers can transfer the funds back into their own bank accounts. (This reporter successfully grabbed three this morning.)

Alibaba Posts Profit on Demand Ahead of Potential IPO – Bloomberg Net income attributable to ordinary shareholders was $792 million in the three months ended September, up from a loss of $246 million a year earlier, according to a presentation from Yahoo! Inc. (YHOO), which owns a 24 percent stake in China’s largest e-commerce company. Revenue rose 51 percent to $1.78 billion.

Weibo’s value shrinks by US$500m after market report|WantChinaTimes.com The stock price of Sina Weibo, China’s equivalent of Twitter, fell by 11.32% from US$84.60 on Jan. 15 to US$75.02 on Jan. 17, which was a result of a recent Chinese report, according to Beijing’s Economic Observer.

The China Internet Network Information Center (CNNIC) released a report on Jan. 16 in which it said that the number of Weibo users had dropped by 9.2%, or 27.83 million last year. The market misinterpreted the Weibo or microblog users mentioned in the report as Sina Weibo users, as a result of which Sina Weibo’s market value shrunk by US$500 billion after the report’s release.

PetroChina: Discounted Growth Play With Significant Upside – Seeking Alpha PetroChina (PTR), China’s only super major, has a history of strong financial growth and is well positioned to take advantage of China’s growing demand for diversified energy sources. Currently trading at only 9.3x earnings, the PTR stock looks like the rare gem that offers growth at a value price.

Wal-Mart to upgrade China vendor compliance after state TV criticism | Reuters U.S. retailer Wal-Mart Stores Inc (WMT.N) said on Wednesday it will upgrade its vendor compliance process in China, requiring more documentation and making use of a computer-based system to help suppliers manage associated paperwork.

The announcement came after state-owned China Central Television (CCTV) criticized the world’s No. 1 retailer for circumventing its quality control process and fast-tracking some products with higher profit margins.

Shipping lines shed assets to offset poor performance – Business – Chinadaily.com.cn China Shipping Container Lines Co, a main subsidiary of State-owned China Shipping (Group) Co, has forecast a net loss of 2.63 billion yuan ($435 million) for 2013, as the company underwent a shrinking global shipping market, aggravated by the challenges of overcapacity and international competition.

To avoid financial loss, CSCL began to sell its quality assets in the second half of 2013. However, the company only managed to complete a 49 percent share sales of Lianyungang New Oriental International Container Wharf with Singapore’s port operator PSA International Pte Ltd within the year, gaining 260 million yuan in sales profit.

Huawei, Lenovo poised to close gap with smartphone leaders | South China Morning Post Huawei Technologies and Lenovo are expected to intensify competition in the global smartphone market after both companies recorded strong unit shipment growth last year.

Data released yesterday by technology research firm IDC showed the two Chinese technology giants captured a combined 9.4 per cent market share last year, when total industry shipments topped 1 billion units for the first time.

Why Baidu Acquired Renren’s Group-Buying Site By acquiring the remaining shares in Nuomi, Baidu actually does something rare, as the company is well-known for buying only controlling stakes. At the same time, by selling all of its stake in Nuomi, Renren –which has been largely overtaken by Sina‘s Weibo and Tencent‘s WeChat in the past two years– may be trying to make its portfolio of services more compact. The social network company may focus more on improving user and monetization metrics of its promising game business, rather than releasing new services.

Hong Kong Property Tycoons Settle Family Feud – China Real Time Report – WSJ A yearslong feud involving the family behind one of the world’s biggest property empires appears to have come to a happy ending, with a deal reached to equally divide family-owned shares in Sun Hung Kai Properties Ltd. to the three Kwok brothers and their families.

The agreement in essence restores eldest brother Walter Kwok as a beneficiary of the family trust that controls the property company, commanding a market capitalization of 260 billion Hong Kong dollars (US$33.5 billion).

CICC, Qianhai Financial Plan $3.3B Joint Cross-Border Fund Beijing-based China International Capital Corporation (CICC) has signed a memorandum of understanding with Qianhai Financial Holdings, a wholly-owned subsidiary of the Administrative Bureau of Qianhai Economic Zone in Shenzhen, to establish a joint development fund, according to an announcement.

The CICC Qianhai Development Fund will target to raise a total of RMB20 billion ($3.3 billion). It plans to complete first closing of RMB5 billion ($833 million) before June 30 this year.

Toyota Supplier Sees China Sales Doubling on Orders From VW, GM – Bloomberg Tsubakimoto Chain Co. (6371), a Toyota Motor Corp. (7203) supplier, forecasts China auto parts sales to more than double in four years as carmakers including Volkswagen AG and General Motors Co. raise orders to diversify supply chains.

The maker of transmission chains and gears expects sales to jump to more than 12 billion yen ($117 million) by March 2018, Toru Fujiwara, managing executive officer, said in a Jan. 27 interview. The board has approved plans for a new plant in China as early as this year, he said.

China Money Network − KPCB-Backed Chinese Group-Buying Site ManZuo.com Sold To Suning Nanjing based Chinese home appliance retailer Suning Commerce Group Co. says it has acquired Chinese group-buying site ManZuo.com for around $10 million, according to media reports.

Kingsoft to Take Security Software Business KIS and List it on U.S. Market Kingsoft Corporation (SEHK: 3888), a leading applications and entertainment software developer in China, announced today that it planned to spin off security software business and list the sector on NASDAQ or New York stock exchange. Kingsoft has filed to Hong Kong Stock Exchange for the spin-off.

Kingsoft’s security software business is operated by Kingsoft Internet Software Holdings Limited (KIS), also known as Kingsoft Network in China. The company is principally engaged in development and operation of security software and web browser Liebao, as well as cross-platform value-added services and online advertising.

Noble Group Limited (via noodls) / NOTIFICATION ON SUBSIDIARY Noble Group Limited (the “Company”) wishes to announce that on 23 January 2014, the Company’s wholly-owned subsidiary, Noble Clean Fuels Limited (“NCFL”), has subscribed for a 51% shareholding interest in Watt Power Limited (“WPL”), a company incorporated in the United Kingdom.

Moody’s assigns A1 to China Shipping Overseas Finance 2013 Limited’s bonds Moody’s Investors Service has assigned a definitive A1 rating to the credit enhanced bonds issued by China Shipping Overseas Finance 2013 Limited (unrated).

The bonds are supported by an irrevocable standby letter of credit from  the Bank of China Limited (BOC, A1/P-1/D, stable),  Macau Branch.

RPT-UPDATE 2-Shaanxi Coal debut hit by volatility in China’s reopened IPO market | Reuters Shares of Shaanxi Coal Industry Co Ltd jumped in their Shanghai debut but came off earlier stratospheric highs in a roller coaster day as China’s newly reopened initial public offering market drew out aggressive punters.

Shaanxi Coal, which raised $660 million in the biggest mainland China listing since 2012, had soared by its daily limit of 44 percent in early trade. That triggered a suspension until five minutes before the market’s close and prompted an announcement from the exchange that it had taken measures against two retail investors who had driven the price up aggressively.

KWM advises Agricultural Development Bank of China on RMB bonds issuance | Firm News | The Lawyer King & Wood Mallesons (KWM) has advised the Agricultural Development Bank of China (ADBC) on the successful issuance of RMB bonds worth ¥3bn (£300m) and getting listed on the Hong Kong Stock Exchange.

The bonds are issued to institutional investors with terms of two years and three years respectively at the interest rate of 3.08 per cent and 3.28 per cent per annum.

Posted from Diigo.

China Business Briefs 26/1/14

Not much happening today with the imminent Chinese New Year.

ECONOMY

Fear grips markets as investors worry about China’s growth and US profits | South China Morning Post Fear is back in the market. Investors are worried about slower economic growth in China, a gloomier outlook for US corporate profits and an end to easy-money policies in the United States and Europe. They’re also fretting over country-specific troubles around the world – from economic mismanagement in Argentina to political instability in Turkey.

MOC calms talk of more FTZ pilots – Xinhua | English.news.cn China is still reviewing the applications of prospective new free trade zone (FTZ) pilots and hasn’t green-lit the establishment of any yet, a commercial official said on Friday.

“We are still studying other places’ FTZ applications and the State Council hasn’t approved any new set-up,” said an official of the Ministry of Commerce’s International Trade and Economic Relations Department.

re: The Auditors » Blog Archive » One Way Or Another: The SEC Versus The Chinese Big Four Firms Let’s break down the companies affected by the judge’s decision. I am assuming it will eventually be implemented in some form.

The PCAOB site lists 151 companies with mainland China auditors. That compares with 132 companies with audits signed by Hong Kong firms. (Numbers are skewed for KPMG which reports all issuer audits on one form, filed by Hong Kong, but PCAOB attributes all KPMG China issuer audits to mainland China.) The mix is different. PwC dominates on the mainland but an independent firm, Albert Wong & Co, has the most audits of Chinese issuers in Hong Kong.

I agree with Professor Paul Gillis that the ban will not affect US-listed companies audited by Hong Kong firms immediately, unless or until those companies start requiring SEC fraud investigations, too. In that case, the SEC and PCAOB will run into the same problem they have on the mainland. The PCAOB is prohibited from inspecting its registered firms auditing US issuers in Hong Kong. The SEC will run into the same “Chinese secrecy law” when trying to get audit work papers out of Hong Kong to investigate frauds as it has out of Shanghai or Beijing.

Reforms will result in fairer competition in China – Business – Chinadaily.com.cn Ongoing reforms in China will result in fairer competition in the country, the vice president of a leading business school said Friday.

Consumers in China will be better off thanks to tougher competition on the market, Hellmut Schuette, vice president and dean at China Europe International Business School told Xinhua in an interview on the sidelines of the World Economic Forum.

Major bank headquarters maintain deposit interest rate – Xinhua | English.news.cn China’s five major state-owned banks said Friday that their headquarters still maintain the deposit interest rate and surges reported on Thursday were individual cases by some branches for special clients or businesses.

The People’s Bank of China (PBOC), the central bank, announced on June 7, 2012 that the upper limit of the floating band of deposit rates would be adjusted to 1.1 times the benchmark, or up 10 percent at most. Local commercial banks began lifting the deposit interest rate after the announcement.

China Seeks to Attract Skilled Foreign Workers-Caijing China will speed up the exploration of immigration policies this year to  attract skilled foreign workers, a senior official said on Thursday.

However, Zhang Jianguo, head of the State Administration of Foreign Experts  Affairs, did not give details on when the policies will be  introduced.

Hangzhou closes live poultry markets to combat bird flu[1]- Chinadaily.com.cn Hangzhou, the capital of eastern China’s Zhejiang province, has suspended the trading of live poultry in order to halt the spread of the H7N9 bird flu virus.

The city banned the trading in its main urban areas on Friday, according to local health and industrial and commercial departments.

Solar industry bouncing back on mainland China after prolonged downturn | South China Morning Post The mainland’s solar panel industry is showing signs of booming again after a prolonged downturn – raising fears of another bust when the splurge of public money that is driving a spike in demand dries up.

But industry officials worry fast-growing generation capacity will increase fiscal pressures on China and Japan and force them to cut subsidies, which will then hit demand, just as happened with previous big solar users Germany, Spain and Italy.

COMPANIES

China’s Fosun Wants To Surpass Ping An Insurance In 2014 – Forbes For Guo Guangchang, chairman of China’s largest privately owned conglomerate Fosun Group, the ultimate goal is to be like Warren Buffett. To transform Fosun into a long-term strategic investment company much like Bershire Hathaway, the goal in 2014 would be to beat Ping An Insurance, the mainland’s second largest insurer that also provides financial and banking services, Guo said.

SOHO to increase Beijing holdings to 50% – Business – Chinadaily.com.cn SOHO China, a Hong Kong-listed property developer that specializes in commercial property, intends to hold half its property in Shanghai and half in Beijing, the company’s chairman said on Thursday.

Pan Shiyi made this comment when explaining that SOHO had sold out three projects in Shanghai last year.

“As we found that our holding property had reached 75 percent in Shanghai and only 25 percent in Beijing, we decided to restructure our portfolio to achieve a 50-50 split in both Beijing and Shanghai,” said Pan.

Spring Airlines bucks industry trend with 10% profit growthWantChinaTimes.com At a time when most airlines have seen profit declines due to restricted business flight demand, Spring Airlines, China’s only budget airline, reversed the downtrend to see profit growth of around 10% last year, Shanghai-based China Business News reports.

In 2013, total profits in China’s airline industry reached 27.3 billion yuan (US$4.5 billion), down 7.7% from 29.6 billion yuan (US$4.9 billion) a year earlier, while Spring Airlines, which owns 40 aircraft, enjoyed a profit growth of about 10%.

Tesla China chief unveils aggressive growth plan for China | Reuters U.S. electric carmaker Tesla Motors Inc (TSLA.O) expects its China sales to contribute one third of global sales growth this year, a senior executive said, adding that a trademark issue stalling full-entry into China had been resolved.

Veronica Wu, vice president of Tesla’s China operations, told Reuters the Palo Alto, California-based company planned to open stores in 10-12 Chinese cities by the end of 2014, including its flagship store in Beijing that opened late last year.

Tesla Announces Lower-than-Expected Price of $121k for Model S in China Tesla Motors, the electronic car startup co-founded by PayPal billionaire Elon Musk, announced that Model S will be sold for 734,000 yuan (US$121,280), lower than over 1 million yuan as previously speculated by the public.

Tesla claimed this is a fair price, although it is still about 40% more expensive as compared with $81,070 in the U.S. According to Tesla, the extra amount is generated from taxes, customs duties, and transportation costs. The company also breaks down the amount to $3,600 for shipping and handling, $19,000 for customs duties and taxes, and $17,700 for VAT.

America is in an Energy Renaissance; Don’t Get Too Excited About Cheap(er) Oil One reason for a potential surge in price is a major uptick in Chinese demand. 2013 was the slowest oil demand growth for China in decades, but next year, PetroChina (NYSE: PTR) estimates it will more than double last year’s growth. This could put a higher premium on international oil prices for the year, and further down the road as China becomes more and more reliant on oil imports.

25-year corporate tax holiday for US$ 1.3 billion offshore Colombo Port City | The Sundaytimes Sri Lanka The move to build Colombo Port City follows an unsolicited tender from China Communications Co. Ltd (CCC). The project is more expensive than the Mattala Rajapaksa International Airport (US$ 210 million), Phase 1 of the Hambantota Port (US$ 361 million) or the Colombo-Katunayake Expressway (US$ 350 Million) put together.

Noble’s macro trading head in Asia quits to make hedge fund comeback | Reuters Noble Group Ltd’s  head of macro trading in Asia, Allan Bedwick, has quit and is preparing to make a comeback in the hedge fund industry, sources said on Friday.

Bedwick managed his macro hedge fund firm, Sequence Asset Management, until 2012 and had moved to Noble Group last year.

Posted from Diigo.

China Stock Watch 24/1/14

Stock performance was mixed today, after the sharp ups and downs of the past week. Ten rose on the day, with Dongfeng Motor easily the best of them, up 2.98% to HK$11.74, on news of approval of a joint venture with Volvo; none of the other nine put on more than 1%, though SAIC Motor came closest, appreciating by 0.92% to RMB13.92.

Declines were led by Noble Group, down 2.55% to SG$0.955, helping make it the second worst performer over the week (see below), and Ping An Insurance, down 1.12% to RMB40.54.

The stories of the tax haven accounts does not seem to have particularly disturbed Chinese stocks, despite revelations concerning Sinopec and PetroChina, for example. The dump of 37,000 documents pertaining to offshore accounts from China, Hong Kong and Taiwan will take time to comb through, and one should be prepared from more stories blowing up over the coming weeks (if the Guardian and co are doing their job properly). Yet I somehow wonder how much of a problem this will be for the biggest Chinese stocks. If their biggest shareholders are institutional investors, such as state pension funds etc, then the expectation of a “shareholder revolt” can be forgotten. It would simply be too embarrassing for the party. This is not to say that executives won’t be punished, but a full-frontal assault bringing up awkward details is not the party’s style.

The Shanghai Composite closed at 2,054.39, gaining 12.21 points (+0.60%).

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.6 +0.02 (0.44%) 536,200.43M 7.03 4.05 CN¥0.62 7.48
PetroChina 7.62 0.00 (0.00%) 1.39B 9.5 7.08 CN¥0.68 11.28
ICBC 3.4 0.00 (0.00%) 1.19B 4.53 3.38 CN¥0.74 4.62
China Construction Bank 3.92 0.00 (0.00%) 980,043.05M 5.19 0 CN¥0.85 4.63
Agricultural Bank 2.37 +0.01 (0.42%) 769,762.02M 3.28 2.35 CN¥0.50 4.72
Bank of China 2.5 +0.02 (0.81%) 698,411.38M 3.26 2.45 CN¥0.53 4.71
China Mobile 76.40* -0.60 (-0.78%) 1.54B 89.2 74.9 HK$8.20 9.31
Noble Group 0.955 -0.025 (-2.55%) 6,328.86M 1.27 0.785 SGD0.04 26.13
China State Construction 3.04 +0.02 (0.66%) 91,200.00M 4.18 2.9 CN¥0.62 4.94
CNOOC 12.72* -0.02 (-0.16%) 567,915.65M 16.52 12.04 HK$1.89 6.71
China Railway Construction 4.24 +0.01 (0.24%) 52,311.17M 6.25 3.95 CN¥0.84 5.04
China Railway Group 2.46 +0.01 (0.41%) 52,397.75M 3.36 2.3 CN¥0.44 5.61
SAIC Motor 13.19 +0.12 (0.92%) 145,427.22M 19 11.83 CN¥2.05 6.43
China Life Insurance 14.36 -0.15 (-1.03%) 405,881.15M 22 12.88 CN¥0.97 14.86
Dongfeng Motor 11.74* +0.34 (2.98%) 101,153.25M 13.28 9.48 HK$1.38 8.52
China Shenhua 14.37 +0.12 (0.84%) 285,813.84M 25.28 13.97 CN¥2.25 6.38
Ping An Insurance 40.54 -0.46 (-1.12%) 320,920.41M 53.27 31.69 CN¥3.45 11.75
China Telecom 3.68* +0.02 (0.55%) 297,831.12M 4.4 3.48 HK$0.26 14.23
China Communications Construction 3.86 0.00 (0.00%) 62,434.48M 5.79 3.74 CN¥0.81 4.77
Bank of Communications 3.74 0.00 (0.00%) 277,742.60M 5.68 3.65 CN¥0.84 4.44

Week’s Movers

For a change, more stocks rose over the week (twelve) than fell (five). Transport and infrastructure stocks did best – with SAIC Motor gaining 5.69%, China Railway Group 3.36% and China Railway Construction 3.16%, while China State Construction put on 2.36%. As we’ve consistently seen in the business briefs, Chinese companies are busy constructing roads, harbours and rail throughout Africa, central Asia and increasingly in Europe, too.

CNOOC led the fallers, precipitated by missing annual production targets, and for the third year in a row, losing 8.88% over the week.

risers

fallers