Oversea-Chinese Banking Corp

China Business Briefs 13/1/14

ECONOMY

Yuan Reaches 1993-High on Record Fixing as Taper Concern Eases – Bloomberg The currency advanced by the most in a month as the People’s Bank of China strengthened the daily fixing by 0.1 percent today to 6.0950 per dollar, the highest since a peg to the greenback was scrapped in July 2005. U.S. employers added 74,000 workers in December, the least since January 2011, the Labor Department said on Jan. 10. China had a trade surplus of $25.6 billion in December, according to official figures released Jan. 10.

China Moving Closer to Bank Failure: Xinhua-Caijing China is moving closer to allowing its banks actually fail, the official Xinhua reported, citing Yan Qingmin, deputy chairman of China Banking Regulatory Commission.

The market will have the final say in future, Yan told the forum, which means banks would have to stay out of the market if they end up insolvent. Such a remark from the regulator has signaled the state’s exit from its support to deposits in commercial banks and the government will for the first time allow its banks to go bankrupt, Xinhua said.

China’s 2013 exports rise 7.9%, imports up 7.3% – Business – Chinadaily.com.cn China’s exports rose 7.9 percent year on year to $2.21 trillion in 2013, while imports increased 7.3 percent to $1.95 trillion, customs data revealed on Friday.

The foreign trade surplus widened to $259.75 billion in 2013, an increase of 12.8 percent from a year earlier, said Zheng Yuesheng, spokesman for the General Administration of Customs.

Nation’s salary growth strong: Report – Business – Chinadaily.com.cn According to the 2014 Hays Asia Salary Guide, which was released on Thursday and polled about 2,600 employers across the region, 67 percent of the surveyed Chinese employers said they will increase employees’ salaries above 6 percent, compared with 66 percent last year.

US scrutinises Chinese investments most over national security: law firm | South China Morning Post The Committee of Foreign Investment in the United States (CFIUS) reviewed 23 transactions proposed by Chinese companies in 2012, followed by 17 for Britain, traditionally top of the list for scrutiny, and 13 for Canada, US law firm Kaye Scholer said in a report.

Investors still not sold on rail sector – BUSINESS – Globaltimes.cn Some see these losses as a sign that China’s rail assets are undervalued, despite a recent industry overhaul. In actuality though, investors have good reason to be bearish on the rail sector.

Chinese Developers Set to Increase Investment In Foreign Real Estate – Forbes Chinese developers have been purchasing big real estate projects in the world’s most important cities in the past year. They will continue the shopping spree this year, with other Chinese groups to follow the trend soon, according to real estate analysts.

New property bureau to be set up – BUSINESS – Globaltimes.cn China will establish a new bureau specifically designed for property registration this year in a push to facilitate property management reform, the Ministry of Land and Resources (MLR), the country’s top land regulator, said over the weekend, according to the Xinhua News Agency.

On top of the establishment of the new bureau, relevant regulations that will lay the ground for a unified regi­stration system will be released this year, Xu Deming, vice minister of land and resources, said Saturday at a two-day annual work conference.

China Believes that it Can Duplicate Our Success Given our recent success in producing oil and natural gas, it shouldn’t shock anyone that other countries believe they can follow suit. China now has hopes of doubling its oil production by 2030. Because it will be relying heavily on unconventional production methods, the help of current experts in these areas will be needed. Equipment & service providers Halliburton (NYSE: HAL) and Schlumberger (NYSE: SLB) have already begun successfully setting up shop in China. They will be helping producers like CNOOC (NYSE: CEO) and Royal Dutch Shell (NYSE: RDS-A  ) tap these vast resources. For more, tune in to the clip below.

Why China Wants to Kill Off Bitcoin The press releases may seem mundane, but the reality is, China has a big incentive to keep Bitcoin out of the hands of its citizens. China maintains very tight capital controls, limiting the amount of cash citizens can move outside the country.

Bitcoin effectively circumvents any and all capital controls. Prior to a widespread ban, Chinese citizens could buy Bitcoin to sell for another currency, or even buy homes in foreign lands. Yes, homes. Several homes have been listed with prices in Bitcoin.

COLUMN-Record China crude oil imports flatter to deceive: Clyde Russell | Reuters Taken together, net crude and fuel imports last year were 5.83 million bpd, up about 160,000 bpd, or 2.8 percent, from 2012’s 5.67 million bpd.

This figure is a truer reflection of the overall state of Chinese import demand.

Closer Look: Same Game, Different Names – The end of a listing freeze on mainland stock exchanges has reinvigorated investor appetites for new shares. This comes along with the intention of many company founders to cash out of newly-listed companies. When such demands intersect, sparks are bound to fly.

RMB appreciation unappreciated as inflation dampens affordability|WantChinaTimes.com The 35.7% appreciation in the value of the yuan during this eight-year period has been a positive development for Chinese exchange students studying overseas, but locals who have remained in the country are complaining that their money is becoming less valuable given that the consumer price index, the main measure of inflation, has averaged around 3.1% per year.

Milk, Games and Movies: China Stocks to Watch in 2014 – China Real Time Report – WSJ One area to watch: dairy products. The government’s relaxation of its one-child policy and antitrust measures targeting international competitors are both good news for the domestic milk industry, Bank of Communications Schroder Fund Management Co. said in a recent research report. Retail prices of China’s dairy products rose 5.7% in 2013 on-year, up from an increase of 3.2% in 2012, data from the National Bureau of Statistics showed—faster than inflation, which clocked in for the year at 2.6%.

China can avoid Japan-style property bubble: official | Reuters China’s policy fine-tuning and ongoing urbanization can help it to avoid a Japan-style property bubble, a senior housing official said, amid fears a housing market crash could lead to a hard landing for the world’s second-largest economy.

Beijing has allowed local governments to take differentiated property tightening measures, rather than a one-size-fits-all bid to cool the market, Vice Housing Minister Qiu Baoxing said in remarks published in the Southern Metropolis Daily.

Luxury cars drive UK exports to China – Telegraph British exports to China are rising at a blistering pace and are poised to overtake those of France for the first time in the modern era, driven by sales of Range Rovers and other luxury cars to the country’s new rich.

Fresh data released by China’s authorities show that imports from Britain rose 14pc to $19.1bn (£11.6bn) last year, with more than 40pc of total sales coming from vehicles and transport goods.

Closer Look: Why Overpriced IPOs are not a Reason for Intervention – All of them have one thing in common: the price-to-earnings (PE) ratio of their proposed offering price was much higher than the average PE ratio of comparable companies in the secondary market.

Five companies scheduled to start their online road shows for an initial public offering on January 13 postponed their issuance on the previous day, putting the number of companies to halt their stock issuance last minute at six.

China ‘equity return’ is a misnomer – Craig Stephen’s This Week in China – MarketWatch The lack of correlation between China’s growth and stock-market performance has frustrated money managers for years and spawned a variety of theories to try to explain this misnomer. Some look more useful than others, but they are worth reviewing as new explanations arrive.

Little consensus on renminbi appreciation this year | China Economic Review The bank’s Deputy Governor Yi Gang went a bit further last week, saying that China’s currency was close to equilibrium and would not require more intervention.

If that’s true, and China intends to stop buying US treasuries on a regular basis, the value of the yuan should appreciate considerably this year and in the years to come as China’s trade surplus is set to rise too. The IMF says the country’s current accounts surplus will double between 2013 and 2017.

COMPANIES

Death blast hits Sinopec for $963m – The Standard China Petroleum & Chemical Corporation (0386) announced yesterday it had suffered a direct loss of 751.72 million yuan (HK$963.69 million) from a deadly accident in Qingdao last November for which chairman Fu Chengyu has received disciplinary penalties.

Fu was given a demerit on administration, while vice chairman Wang Tianpu, president Li Chunguang, chief safety officer Wang Yongjian and supervisor and director of general production Yu Renming were given “serous demerit on administration,” the firm said.

Chinese app store Wandoujia seals $120 million in funding Wandoujia, one of China’s top Android app stores, has secured a massive $120 million in funding, the Beijing-based startup revealed today.

The investment is led by SoftBank (TYO:9984), the Japanese mobile telco, with some funds also coming from DCM and Kaifu Lee’s Innovation Works Development Fund (IWDF). It’s the second major cash boost for Wandoujia, coming long after its $8 million in series A funding in 2011, which was led by DCM and Innovation Works.

Billionaire Li’s PCCW, Pacific Century Premium Suspend Trading – Bloomberg PCCW Ltd. (8), controlled by billionaire Richard Li, and its property unit Pacific Century Premium Developments Ltd. (432) halted their shares from trading in Hong Kong.

Pacific Century Premium plans to release a statement relating to “inside information and unusual price and trading volume movements,” the company said in a filing today. Shares of the Hong Kong-based property developer surged 15 percent to HK$3.07 before the trading halt.

WeChat brings in over 100,000 taxi rides in 9 days It’s been about a week and a half since WeChat, the messaging app that’s dominating smartphones in China, added taxi booking and payments to its range of services. The maker of WeChat, Chinese web giant Tencent, added support for the Didi Dache service after investing nearly $100 million into it. Today the fine folks at 36kr say that the total number of completed transactions – meaning taxis hailed and paid for inside of WeChat – have surpassed 100,000.

KFC Crisis in China Tests Ingenuity of Brand Builder – WSJ.com More than a year into the crisis, Yum is still struggling. Now Mr. Su and Chief Executive David Novak say the Louisville, Ky., company can turn things around in 2014, vowing that new menu items and digital-media initiatives will revive the brand in China. “I fully expect a strong comeback year,” Mr. Su said in a rare interview last month.

Some investors are getting restless. Yum’s shares—which had been propelled for years by its China growth—are up only 12% since late November 2012, when Chinese state media started reporting on food-safety concerns surrounding KFC suppliers. The Dow Jones Industrial Average rose 26% in that period.

President Death Leaves Heir Overdue Rail Payments: China Credit – Bloomberg Shares in China’s second-biggest builder of railways have fallen 4.9 percent in Hong Kong since the company said Jan. 5 that President Bai Zhongren had died in an accident and that Chairman Li Changjin will take over his job before a successor is chosen. The yield on 2023 dollar-denominated debt of a company unit reached an eight-week high of 5.03 percent on Jan. 9, up from 3.88 percent when they were sold last January.

The Beijing-based company had 531.6 billion yuan ($87.9 billion) of liabilities on Sept. 30, data compiled by Bloomberg show. Its long-term debt to equity ratio of 129 percent would put it in the worst 3 percent on the Hang Seng Index, while its ability to cover interest payments with earnings would be in the worst 1 percent.

Li & Fung to Launch Factory-Safety Business – WSJ.com Li & Fung Ltd. , the buying agent for retailers including Wal-Mart Stores Inc. and Target Corp., said it is setting up the unit to provide factories with consulting services on safety, compliance and efficiency, as well as access to financing and insurance.

Dogfight on the cards | South China Morning Post A dogfight is looming in the horizon as more budget carriers come on stream, bringing them head-to-head with the likes of Cathay Pacific Airways, China Southern Airlines and Air China.

There are about 60 budget airlines operating nearly 1,000 aircraft in the Asia-Pacific but only four in Greater China – encompassing the mainland, Hong Kong, Macau and Taiwan – deploying fewer than 80 aircraft.

OCBC Said in Talks for All-Debt Financing for Wing Hang Deal – Bloomberg Oversea-Chinese Banking Corp. (OCBC) is in talks with lenders including Bank of America Corp. and HSBC Holdings Plc about an all-debt financing for its acquisition of Hong Kong’s Wing Hang Bank Ltd. (302), according to two people with knowledge of the matter.

Singapore-based OCBC plans to sell stock later to help repay the short-term loan, said the people, who asked not to be identified because the discussions are private. Talks between the companies are centering around a valuation of almost 1.9 times Wing Hang’s book value, though no terms have been finalized, one person said.

Service firms pay 67% of tax revenue – Xinhua | English.news.cn The service industry paid nearly two-thirds of Shanghai’s tax revenue last year and financial firms took the lead as they made up 40 percent of the 100 top service taxpayers, underlining the city’s goal to be a global financial center.

The Bank of Communications Ltd was the top service taxpayer with 16.2 billion yuan, followed by Shanghai Pudong Development Bank with 10.4 billion yuan, and Shanghai GM Sales Co Ltd with 8.4 billion yuan.

Onecard, China’s version of Coin, is your digital credit card As well as storing your credit cards and being swipe-able in China’s point-of-sale devices in stores, OneCard will go a couple of steps further than Coin in also storing prepaid cards and membership/loyalty cards. Even better, it promises to support the tap-to-pay function on Beijing’s and Shanghai’s public transport systems. It also incorporates NFC, but that’s of limited usage pretty much anywhere.

Moody’s assigns A1 to BOC Hong Kong Branch’s MTN program drawdown Moody’s Investors Service has assigned an A1 rating to the benchmark-size  senior unsecured notes to be issued by Bank of China Limited (BOC) Hong  Kong Branch.

ASIA CREDIT CLOSE: New issues feel impact of competition | Reuters Bank of China, meanwhile, also announced a two-tranche offering, which took the shine away from BoCom’s 3-year bonds printed last week, which were, therefore, last quoted at 186bp/184bp over the 2-year US Treasury, or 3bp wider.

Sinohydro Group Ltd : 32 Years After, No Power At Mambilla Hydro-Power Project | 4-Traders According to the report, the project was contracted at the sum of $3.2 billion (equivalent N508 billion) to the China Gezhouba Group Company Limited (CGGC) and another Chinese consortium, Sinohydro, with the proposed structure of the contract stipulating that Sinohydro cover 70 per cent of the project while CGGC would execute the remaining 30 percent.

Hong Kong Electric Eyes up to $3.6 Billion From IPO | 4-Traders HK Electric Investments, which owns power plants and electricity-distribution networks in the city, is selling 4.43 billion units in an indicative price range of HK$5.45-HK$6.30 each, it said in a statement late on Sunday. At the US$3.6 billion size, it will be the region’s top deal since Suntory Beverage & Food Ltd raised US$4 billion from an IPO in Japan in June, according to Dealogic.

£24bn rival to Panama Canal to break ground this year – Telegraph Its construction is essential to deal with a surge in global trade and the rise of colossal supertankers, many of which are too large for the ageing   Panama Canal, more than 500 miles to the south.

The project’s funding is being led by the Chinese telecoms billionaire Wang Jing, whose HKND Group won a licence for the development last year.

Chinese Startup Hopes to Capture Apple’s Magic – China Real Time Report – WSJ The Chinese company, which is planning to expand abroad, paid Apple co-founder Steve Wozniak to appear on Sunday in front of reporters at its headquarters in Beijing. Mr. Wozniak showed up at the event–labeled as the “Lei Jun & Woz Tech Talk”–with Xiaomi’s founder and chairman, Lei Jun, and told reporters that Xiaomi’s products were “excellent” and “good enough to crack the American market.”

What U.S. Coffee Chain Could China’s Goubuli Be Looking to Buy? – China Real Time Report – WSJ Zhang Yansen, chairman of closely held Chinese bun maker Goubuli, has been in the Chinese press this week saying he is in the final stages of negotiations to acquire a well-known American coffee chain, without disclosing the name. He gave some hints though: It has hundreds of shops in 40 countries spanning the U.S., Europe and Asia.

China Life Insurance Co. Ltd. (LFC): New Analyst Report from Zacks Equity Research – Zacks Equity Research Report – NASDAQ.com We maintain our Neutral recommendation on China Life as strong market position, growth in premiums and investment income is expected to outweigh the headwinds like higher expenses and declining cash flow.

Posted from Diigo.

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China Business Briefs 12/1/14

Sorry about there being no blogpost yesterday. Enjoy today’s bumper issue.

ECONOMY

Beijing Tests Tools to Tackle Bad Debt – WSJ.com China’s government is gearing up for a spike in nonperforming loans, endorsing a range of options to clean up the banks and experimenting with ways for lenders to squeeze value from debts gone bad.

Write-offs have multiplied in recent months. Over-the-counter asset exchanges have sprung up as a way for banks to find buyers for collateral seized from defaulting borrowers and for bad loans they want to spin off. Provinces have started setting up their own “bad banks,” state-owned institutions that can take over nonperforming loans that threaten banks’ ability to continue lending.

Caixin Explains: What the Central Gov’t Thinks of Shadow Banking – Problems regarding shadow banking have long concerned the central bank and the China Banking Regulatory Commission (CBRC), but it was not until a meeting in July that the State Council made a priority of addressing the problem. A lot more attention was paid to the CBRC’s research on the matter, which constituted the basis of the document that was circulating.

The CBRC had argued that trust companies and some off-balance-sheet operations of commercial banks were not shadow banking, considering that they were not highly leveraged. Also, the Ministry of Commerce had long opposed treating pawn shops and financial leasing companies as shadow bankers.

China uncovers thousands of disaster risks in oil and gas sector | Asia-Pacific | BDlive China has uncovered about 20,000 disaster risks in its oil and gas sector during a nationwide safety probe following a pipeline blast that killed 62 people last year, the country’s safety watchdog said on Thursday.

People’s Bank of China keeps pressure on money markets – FT.com Last week, hours before 2013 came to an end, the People’s Bank of China delivered an unwelcome surprise to some of the country’s biggest banks. Despite frazzled nerves after a liquidity squeeze just one week earlier, the central bank told them it wanted to conduct a bond repurchase operation, a move that would take cash out of their hands for a few days.

“Everyone said it was like a new year’s message from the PBoC. They were telling us that money is going to stay tight,” says a senior credit trader with a European bank in Shanghai.

China Keeps Dancing With a Lehman Moment – Chovanec – MoneyBeat – WSJ China’s year-end cash crunch, the one that the government didn’t want journalists to call a cash crunch, is a very serious situation, Patrick Chovanec, chief strategist at Silvercrest Asset Management, said this morning on the MoneyBeat show.

Oilweek – The big chill China is an oil-producing superpower. Last year the country’s state-owned oil companies spent $35 billion buying foreign assets. One result: the country’s state-owned enterprises (SOEs) now produce almost as much oil outside the country as such OPEC kingpins as Kuwait and the United Arab Emirates. These overseas acquisitions are being operated as commercial investments, in the sense that oil from far-flung businesses is mostly being used to supply traditional markets. Add those volumes to China’s position as the world’s fifth-largest producer from domestic fields and the end result is a network of SOEs that is global in scope.

Women Add To Their Lead On Forbes China’s New List Of 50 Top Financial Planners – Forbes Women added to their majority on the new list, taking up 31 spots, compared with 28 last year. Their success, according to Forbes China managing editor Bridge Kang, comes in part from a convention in Chinese households that “men earn the money and women manage it.” That in turn helps female professional financial planners and advisers build good relationships among industry executives and customers, Kang said.

China Exports to Face Tough 2014 as Yuan Climbs – China Real Time Report – WSJ China’s export growth was disappointing in the final month of 2013due to lackluster demand from developed markets, data released Friday showed.

But there could be more problems in store for China’s exporters in 2014 as the yuan currency’s continued appreciation against the U.S. dollar makes the country’s goods more expensive in world markets.

Maturing of municipal bonds puts pressure on Chinese citiesWantChinaTimes.com Municipal bonds worth 285 billion yuan (US$47.1 billion) will be due in 2014 and bonds worth 140.6 billion yuan (US$23.2 billion) will be due in 2015, according to Shanghai-based China Business News. The total outstanding amount of municipal bonds in the nation is estimated in a range of 2.7-3.3 trillion yuan (US$447-546 billion), the paper reported.

China Auto Industry News | China Ends Microgrowth Myth With 13.9% Growth | China Car Times – China Auto News 2011 and 2012 ushered in the era of ‘micro -growth‘ for the Chinese auto market where auto sales slipped from the 30-40% range as seen in the previous decade to to 2.5% and 4.3%, respectively. It was widely thought, and accepted, that micro growth would be the norm rather than the exception for the Chinese automotive market. However, 2013 saw a strong rebound to 13.9% sales growth where sales grew to just under 22 million units over the course of the year with an exceptionally strong December where sales rose 17.9% year-on-year to 2.13 million units according to China Association of Automobile Manufacturers (CAAM)

Fitch’s China shadow banking guru quits – FT.com Charlene Chu, who as a senior director of Fitch Ratings was among the first to flag the growth of China’s massive shadow banking sector, is leaving the credit rating agency. Her departure ends an eight-year spell as a thorn in the side of the Chinese banking industry.

Ms Chu was one of the first to highlight the dangers of both shadow banking and China’s mammoth stimulus plan, rolled out in early 2009 in response to a collapse in global trade.

China iron ore imports grow 10% in 2013 – FT.com The strength of Chinese iron ore demand confounded analysts last year, with 2013 imports rising 10 per cent year-on-year to 820m tonnes, as steel mills defied expectations with an 8 per cent rise in output, according to estimates by the state-backed industry association.

Reversal of fortune in China’s peer-to-peer lending boom – FT.com Dozens of the P2P lending websites that sprang up in recent years have shut down. The biggest companies are unscathed so far, but the rapid collapse of smaller rivals highlights the mounting difficulties in the Chinese micro-lending industry as economic growth slows and monetary conditions tighten.

It is a dramatic reversal of fortune for China’s peer-to-peer websites, which, for a small service fee, connect people wanting to invest money with those looking to borrow small amounts.

Dubai property market attracting more Chinese investors|Markets|Business|WantChinaTimes.com The bubble created in Dubai’s real estate market burst in 2008, but the sector is now making a comeback, attracting global investors including those from China, reports Shanghai’s China Business News.

Housing prices in Dubai have surged by nearly 30% over the past year, with Dubai-based real estate developers, such as Nakheel Properties, recruiting salespeople that can speak Chinese to attract Chinese investors entering the market.

China central bank guides yuan slightly lower, downside seen limited – Economic Times China’s yuan edged down against the dollar on Thursday after the central bank fixed a slightly weaker midpoint but traders said the potential for any sharp correction was limited as Beijing appeared to want to keep the yuan largely stable for now.

Spot yuan was trading at 6.0546 per dollar at midday, falling 0.06 percent from 6.0512 at Wednesday’s close, after the People’s Bank of China (PBOC) set its midpoint at 6.1109, down 0.05 percent from Wednesday’s 6.1079. “Thursday’s midpoint guides the yuan to weaken slightly,” said a trader at a Chinese state-owned bank in Shangh

Chinese banks rush to float bonds abroad|Economy|News|WantChinaTimes.com McKinsey predicted that Chinese banks will raise 2 trillion yuan (US$330 billion) in funds from overseas markets, via issuance of stocks and bonds, in the next five years.

The trend will be fueled by the increasing difficulty of Chinese banks in raising funds on the domestic market due to rising bad debts, a sluggish stock market, rising funding costs, and the deleveraging process.

China mulls national pollution permit trading system | Reuters China will look into establishing a nation-wide trading system for pollution permits as part of efforts to use market mechanisms to help clean up its environment, the country’s top environment official said.

In remarks published on the website of the Ministry of Environmental Protection (www.mep.gov.cn) on Friday, minister Zhou Shengxian said China was working on new regulations for pollution permits and would also publish proposals for new pilot trading projects as soon as possible.

Private capital to play bigger role in China’s healthcare services|Policy|Business|WantChinaTimes.com Investors from Hong Kong, Macao and Taiwan can now run their own hospitals in every city at prefecture level or above, while it was previously stipulated that they could do so only in municipalities and provincial capital cities, according to a circular publicized by the National Health and Family Planning Commission on Thursday.

Investors from foreign countries can also set up wholly foreign-funded medical institutions in the newly established Shanghai Free Trade Zone and in certain other regions, according to the circular, which was jointly signed by the commission and the State Administration of Traditional Chinese Medicine, although it did not specify the other regions.

Half of China’s coastal outfalls over-discharging sewage – Xinhua | English.news.cn Half of China’s 156 coastal outfalls are discharging excessive sewage into the ocean, according to the State Oceanic Administration.

According to a survey conducted by the administration in November, 78 ocean outfalls are discharging excessive sewage, with municipal drainage being the biggest contributor.

Survey results showed that South China’s Guangxi is the most serious among six coastal provincial regions in over-discharging. Fourteen of its 15 ocean outfalls discharged excessive sewage.

China to expand cross-border use of RMB: PBOC – Xinhua | English.news.cn China will continue to expand the cross-border use of the Chinese currency, the Renminbi or yuan, this year, China’s central bank said Friday.

The Chinese yuan’s cross-border settlement reached 3.64 trillion yuan(596.6 billion U.S.dollars) in the first eleven months of 2013, which was 350 times the amount in 2009, the People’s Bank of China (PBOC) said at a work-planning meeting.

China fires back at U.S. for criticism on fishing curbs | Reuters China defended on Friday its new fishing restrictions in disputed waters in the South China Sea against criticism from the United States, saying the rules were in accordance with international law.

Beijing claims almost the entire oil- and gas-rich South China Sea and rejects rival claims to parts of it from the Philippines, Taiwan, Malaysia, Brunei and Vietnam.

Washington called the fishing rules “provocative and potentially dangerous”, prompting a rebuttal from China’s foreign ministry on Friday.

Securities regulator shares audit data with US counterparts – Business – Chinadaily.com.cn The China Securities Regulatory Commission has shared the audit details of four Chinese companies listed abroad with overseas regulators, in a further move to crack down on illegal activities and protect the interests of investors, the watchdog said on Friday.

Cabinet approves new zones – Business – Chinadaily.com.cn China’s cabinet on Friday approved the establishment of new zones in Northwest China’s Shaanxi and Guizhou provinces in the southwest, the latest move to open up inland regions.

Shaanxi’s Xi’an-Xianyang New Area and Guizhou’s Guiyang-Anshun New Area got the nod from the State Council, adding to a string of “new areas”.

Some previous new areas are the Chongqing Liangjiang New Area (approved in 2010) and the Lanzhou New Area (2012). But while the Chongqing and Lanzhou areas were designated as State-level development areas, along with four other such areas, the two latest areas approved didn’t achieve that top position.

Proposed pension reform divides opinion – Business – Chinadaily.com.cn The public is critical that government officials do not need to input into the country’s pension pool but will enjoy higher annuities after retirement than their peers from enterprises and farming due to different plans.

China adopts different pension plans for enterprise employees, rural residents, urban dwellers and workers with government and government-sponsored institutions. This has caused a gap in pension payments, Zheng Gongcheng, a professor with Renmin University of China, told the People’s Daily, flagship newspaper of the Communist Party of China (CPC).

China’s Liquidity Paradox-Caijing Consider this: Despite China’s swelling foreign-exchange reserves – the result of persistent current-account surpluses – market and interbank short-term interest rates are soaring. How did this happen, and what should policymakers do about it?

China December Exports up 4.3Pct, Trade Surplus $25.6B-Caijing China’s exports grew 7.9 percent in 2013 while imports expanded 7.3 percent from a year ago, resulting in a trade surplus growth of 12.8 percent, government data showed.

Trade surplus in the year hit 1.61 trillion yuan ($259.8 billion), with exports at 13.72 trillion yuan ($2.21 trillion) and imports 12.11 trillion ($1.95 trillion), according to data released by the General Administration of Customs today in Beijing.

COMPANIES

China Disciplines 48 For Pipeline Explosions In Qingdao – WSJ.com Two Sinopec executives in charge of the pipeline and a safety director were removed from their positions, Xinhua said. Three local officials in charge of an economic development zone in the Huangdao district of Qingdao—where the blasts occurred—also were dismissed, according to Xinhua.

In 2011, the State Council issued similar disciplinary warnings to 64 people responsible for four accidents at state-owned China National Petroleum Corp., the country’s largest energy company. Jiang Jiemin, CNPC’s former chairman, was among those disciplined for the accidents, which included a pipeline explosion in the port city of Dalian that didn’t result in casualties. Mr. Jiang was promoted two years later to head a government commission that oversees state-owned companies.

China Petroleum and Chemical Rating Increased to Buy at TheStreet (SNP) | Ticker Report China Petroleum and Chemical (NYSE:SNP) was upgraded by investment analysts at TheStreet to a “buy” rating in a note issued to investors on Wednesday, Stock Ratings Network reports.

China Petroleum & Chemical Corporation (Sinopec) (SNP): New Analyst Report from Zacks Equity Research – Zacks Equity Research Report – NASDAQ.com We are downgrading our recommendation on Sinopec to Underperform from Neutral, ahead of fourth quarter results.

China Railway tops charts for proper monetary insulation|WantChinaTimes.com China Railway Group, the nation’s largest construction company, came in on top for accounts receivable, tight cash flows and provisions for bad debt among China’s 36 listed firms related to the high speed rail sector, National Business Daily reports.

China Railway issued a statement on Jan. 6 to clarify that its high level of debt is related to the nature of the industry and not dissimilar from others in the sector. Its liability-asset ratio of 84.84% remains normal and the risk controllable. What should be noticed its high debt ratio has remained for years, the report said.

China’s State Grid buys biggest chunk of HK Electric’s IPO: sources | Reuters Government-owned State Grid Corp of China is coming in as the biggest cornerstone investor in a Hong Kong initial public offering (IPO) worth up to $5.7 billion by Li Ka-shing-backed HK Electric Investments, people familiar with the matter told Reuters.

Li’s Power Assets Holdings Ltd is planning to list its Hong Kong electricity business, HK Electric Investments, as it seeks funds for overseas expansion. The IPO is set to be launched on Monday, they added.

The first Chinese game console: Huawei’s Tron Tron is a small, cylindrical console that runs Android 4.2.3 and connects to TVs via HDMI (it is capable of 1080p output). All told, it’s about the size of a coffee mug. Huawei says the device will sell for $120 or less and come with 16 or 32 GB of storage. Internally, it’s using Nvidia’s Tegra 4 processor, and the Tron also has wi-fi and bluetooth connectivity and even a USB 3.0 port. Here’s a video of the thing in action via Huawei News:

Fosun buys Portuguese insurer for $1.4b – Chinadaily.com.cn Fosun International’s chairman Guo Guangchang said in statement on Thursday that the Hong Kong-listed company outbid US investment fund Apollo Global Management LLC to acquire an 80 percent stake in state-owned Caixa Seguros e Saude SGPS SA, Portugal’s largest insurance group, which is owned by state bank Caixa Geral de Depositos SA.

Shui On Land CEO Resigns as Billionaire Lo Takes Active Role – Bloomberg Shui On Land Ltd. (272), the Chinese developer that’s been selling assets to cut debt, said Chief Executive Officer Freddy Lee quit after less than three years and billionaire Chairman Vincent Lo will resume a more active role.

Shui On has been selling assets as it seeks to pay down debt and improve its cash position. The developer announced last month that it will sell a project in Shanghai to China Life Insurance Group Co. for 3.32 billion yuan ($549 million). New York-based Brookfield Property Partners in November invested $500 million into Xintiandi, which operates the popular entertainment complex in Shanghai.

U.S. Market Still Out of Reach for Chinese Car Makers – WSJ.com GAC Motor isn’t the only Chinese auto company shunning this year’s U.S. show. For the first time since Chinese auto maker Geely Automobile Holdings Ltd. debuted at the show in 2006, no Chinese car company will hold an exhibit this year.

Five years ago, many Chinese auto makers were hatching ambitious plans for going global. While some have been stepping up efforts to build their presence in emerging markets, for the most part they have fallen silent on their ambitions tapping demand in developed economies.

Kuga recall leaves buyers bruised – BUSINESS – Globaltimes.cn Chang’an Ford will recall 80,857 Ford Kuga SUVs produced between September 21, 2012 and November 13, 2013 from February 21, 2014 because of substandard steering knuckles, Chang’an Ford announced on December 27, 2013 on its website.

Goubuli prepares to put big dough into expansion[1]- Chinadaily.com.cn An eatery giant known for its steamed stuffed buns, and with an ambitious expansion plan to buy a United States coffee chain, is joining a growing number of Chinese enterprises in going global.

Goubuli Group, a renowned Chinese food corporation based in North China’s Tianjin, announced on Thursday that it plans to buy a US cafe chain company in the first half of the year.

Greenland Group Plans for A-share Listing-Caijing China’s state-owned property developer Greenland Holding Group Co. said today it aims to float shares in the domestic stock market.

The company plans to submit materials for an A-share listing to China’s securities regulator as soon as next month, said Greenland chairman Zhang Yuliag today.

Observer-Reporter | Chinese coal giant enters Greene Co. natural gas joint venture Officials with Energy Corporation of America and China Shenhua Energy Co. subsidiary Shenhua America Holdings Corp. announced a 50/50 joint venture to develop 25 natural gas wells in Greene County over the next 18 months.

China Tops Rolls-Royce’s Largest Market in 2013-Caijing China has toppled the US to become the largest market for Rolls-Royce Motor  Cars in 2013 with the country’s growing class of crass new riches.

The British-headquartered luxury carmaker sold 3, 630 cars around the world  last year, up from 3, 575 a year ago. 2013 also marked its fourth consecutive  year to report record sales.

Infiniti China Sales Surge – WSJ.com Infiniti, the premium car division of Nissan Motor Co., said its auto sales in China surged 54% in 2013 and the brand expects to maintain its growth momentum this year in the world’s largest auto market.

The company sold 17,108 Infiniti-brand cars in China last year, Johan de Nysschen, senior vice president of Japanese auto maker Nissan Motor and president of Infiniti, said Saturday. Infiniti posted a 16% decline in sales in 2012 amid a territorial dispute between Japan and China over uninhabited islands in the East China Sea.

Tencent’s Personal Cloud Storage Service Micro Cloud Releases 2.0 Version Chinese Internet giant Tencent recently released version 2.0 for its personal cloud storage Micro Cloud (Weiyun in Chinese) with a number of features that aims to turn the product into an integration service from a storage service. The new 2.0 version is expected to hit market on January 15 (source in Chinese).

WeChat’s Rank Rocketed up in the U.S. during Recent Holiday Season, but Dropped down soon AppAnnie has added new features to its free Store Stats tool that you can track apps’ performance on Google Play, iOS, Amazon, and Mac App Store apps in up to 10 countries at once.

For instance, you can see the rank history of WeChat on iOS Store in multiply countries as below. What immediately drew my attention is a peak during the past holiday season. The graph in orange is WeChat’s performance on the U.S. iOS Store. It’s unknown what marketing efforts by Tencent, WeChat’s parent company, helped it.

Steve Wozniak drops into Xiaomi Beijing HQ According to former Google and Android VP turned Xiaomi executive Hugo Barra, who just posted a photo and some details to his Google+ page, Woz is a new convert to their phones. Woz declared that it’s “very emotional for me to be a part of Xiaomi now” – a reference to him using a Xiaomi Mi3 (not working for the ambitious phone-maker).

A tale of two China stocks: NQ Mobile vs. Baidu – The Cody Word – MarketWatch Put simply, I know how hard it is to stay on top of and believe in the numbers that U.S.-based companies publish. To think that I could successfully do so in most any foreign-based company is rather insane. On the other hand, when I see someone like Muddy Waters’s Carson Block target a company like NQ Mobile out of China, it piques my interest, because I do think there’s money to be made finding companies who are pushing the envelope overseas.

Sam’s Club Has Potential in China Because China has the largest population in the world (1.35 billion people), you would think that this move should automatically lead to exceptional results. However, if you look at retailers that have attempted to make names for themselves in China in recent years, their moves haven’t gone so well, and this group includes Wal-Mart. Sam’s Club differs from Wal-Mart’s namesake stores, and this might be a positive for the potential of Sam’s Club in China going forward.

Warren Buffett’s Chinese Cars Are Coming to the U.S. (BRK-B, GM) BYD has done some intriguing work with hybrids and electric cars. But BYD has a long history of optimistic predictions, and the company has had a rough time staying competitive even in its home market. But the Berkshire Hathaway investment has given the company some global cred. Is it time to take them seriously?

Ford and Tencent Work Together To Bring Tencent’s QQ Music To Cars | China Car Times – China Auto News Ford have teamed up with Tencent’s QQ, China’s largest chat and social platform, to introduce QQ Music into all Ford SYNC systems. QQ Music features China’s leading online music streaming platform, and is the most popular music app among Chinese smartphone users, with more than 200 million monthly users and 40 million daily users.

Tencent, Alibaba Have their Eyes on Mobile Payment Prize – The transactions are part of what is sometimes referred to as online-to-offline, or O2O, business, an arena where Alibaba and Tencent are busy battling for supremacy. Late last year, Tencent, which is listed in New York, invested in Didi Dache. Before that, Alibaba put cash into promoting a similar app, called Kuaidi Dache.

And the rivalry is not limited to taxi-hailing apps. The two firms are expanding their offline frontiers to shopping malls, movie theaters, convenience stores and restaurants. Both are beefing up their mobile payment systems – the key to connecting online and offline services – to compete head to head with credit cards and cash payments.

BoCom HK rides wave of bond issuance – Debt – Deals – News – FinanceAsia.com Bank of Communications (BoCom) Hong Kong branch raised a $700 million three-year senior unsecured note on Wednesday, smartly riding the wave of other bond issuance that has hit the debt markets in the first week of the new year.

The bank’s debut Reg S-registered paper had an initial guidance of 170bp over Treasuries and ended up pricing 25bp tighter at 145bp over Treasuries, according to a term sheet.

Surprising hedge fund plays include Bitcoin and China stocks (ACGBY)-ACGBY-PNGAY-Stockhouse news Two examples that come to mind are Ping An Insurance Group Co. (OTO: PNGAY, Stock Forum) and the U.S. listed version of Agricultural Bank of China (OTO: ACGBY, Stock Forum), both of which are known to be heavily owned by hedge funds.  To this day, despite China stocks being in a bear market, PNGAY has not only seen increased liquidity due to hedge fund presence, but the stock recently experienced a run-up that can only be attributed to hedge fund-created momentum.

China Railway Group Ltd : China : CHINA Railway Group to FUND the UK s £50bn high-speed RAIL LINE | 4-Traders China Railway Group has approached Downing Street to fund the UK s £50bn high-speed rail line. This comes a month after Chinese premier Li Keqiang expressed China s interest in the infrastructure project to Cameron.

See how Noble Group earnings could rebound in 2014 | Singapore Business Review The earnings outlook for Noble Group is looking brighter as prices and crush margins may soon see a resurgence, according to Barclays Research.

Noble Group may see its agricultural business margins recover as well as revive its volume growth, which will help the company post better earnings this year.

Chinese Tycoon’s Vanishing Seen Linked to Probe of State-Firm Officials – WSJ.com Hua Bangsong, one of China’s richest men, controls a vast engineering-services empire, Wison Group, which develops chemical plants for the nation’s major oil companies and international giants like Germany’s  BASF SE. But the 48-year-old hasn’t been seen by colleagues since August, when he was detained by Chinese investigators.

Bank of China London Branch successfully issues 2.5 billion RMB Bonds | 4-Traders On 9th January 2014, the book building of the first London offshore RMB bonds issued by Bank of China London Branch was successfully completed? making it the highest value single issue of RMB bonds in London and providing UK and European investors with an additional high quality RMB product.

Fears OCBC may overpay for Wing Hang | Macau Business Daily Oversea-Chinese Banking Corp, Southeast Asia’s second-biggest lender, fell to an almost four-week low in early Singapore stock trading yesterday amid concern it may pay too much to take over Hong Kong’s Wing Hang Bank Ltd.

MVP Group pushes JV talks with CNOOC for Recto Bank | ABS-CBN News The group of business titan Manuel V. Pangilinan is aiming to reach a commercial agreement with state-owned China National Offshore Oil Co. Ltd. (CNOOC) to finally pave the way for exploratory works at the disputed Recto Bank in the West Philippine Sea, its spokesperson yesterday said.

World’s largest bank opens branch in Calgary Industrial and Commercial Bank of China, the largest bank in the world in total assets, officially opened a Calgary branch Wednesday.

The move marks the first foray into Alberta for the bank’s Canadian subsidiary, known as ICBK. There are already five branches in Toronto and two in Vancouver.

Industrial and Commercial Bank of China : Pak-Sino to constitute Experts Working Group | 4-Traders Pakistan and China have decided to constitute an ”Experts Working Group” on setting up energy and development projects in Pakistan with focus on their financing.

This was decided at a meeting between Water and Power Minister Khawaja Asif and Industrial and Commercial Bank of China (ICBC) Chairman Jiang Jianqing in Beijing.

Construction of the Yaoundé-Nsimalen highway takes shape – Business in Cameroon The roadwork initially scheduled for early 2013 will now be completed in thirty-six months by the Chinese company, China Communications Construction Company Ltd for 36.7 billion FCfa.

Posted from Diigo.