Business China back to homepage

China Will Expand Cross-Border Yuan China Will Expand Cross-Border Yuan(0)

The government will push for further opening of its financial markets to increase channels for overseas investors to obtain and use the Chinese currency, the People?s Bank of China said in a report. It will also look at setting up exchange-rate mechanisms between the yuan and some ?minor? currencies on China?s interbank market, the report said.
Since 1993, China?s central bank has signed agreements with Vietnam, Mongolia, Russia, Kyrgyzstan, Laos, North Korea, Nepal and Kazakhstan about using local currencies in bilateral trade, according to the report. The PBOC has also permitted six local lenders to finance overseas projects in yuan since November, it said.
China started to allow businesses to use yuan in cross-border trade in July 2009. In the past two months, China has started yuan spot trading versus Malaysia?s ringgit, allowed offshore trading of the currency in Hong Kong and announced the opening of its bond market to foreign banks.

Source : Konaxis

Bain Converts Gome Electrical Bonds Bain Converts Gome Electrical Bonds(0)

Shareholders will vote this month at a meeting, called by Gome?s imprisoned billionaire founder Huang Guangyu, on whether the three directors representing Bain will remain.
Huang is seeking to regain control of the company from prison. At the Sept. 28 meeting, shareholders will also vote on removing Chairman Chen Xiao and Director Sun Yi Ding, replacing them with Huang?s sister Huang Yan Hong and his lawyer Zou Xiaochun.
Two unidentified shareholders with a 31.6 percent stake in the company voted against three Bain-nominated directors at an annual shareholders meeting on May 11. Gome reappointed the three directors to avoid a penalty payment to Bain.
In a separate statement Wednesday, Gome said it received a letter from the lawyers of shareholder Shinning Crown Holdings Inc., owned by Huang, expressing concerns about the convertible-bond issue in 2009, and seeking 21 days notice of any future intention by the board to issue new shares under its standing authorization.
In response, Gome said the bond issue was in the best interests of the company, and that Shinning Crown?s request for advance notice was ?unreasonable? and would breach Hong Kong stock-exchange disclosure rules.

Source : Konaxis

Limits on Foreign Investment Limits on Foreign Investment(0)

Liu Yajun, director-general of the Commerce Ministry?s Foreign Investment Department, told a conference in Shanghai that the revised catalogue would decrease the number of sectors that were restricted or off limits for foreign investors.
Liu is the latest Chinese official to reassure overseas investors in recent weeks amid rising complaints by foreign politicians and executives that China is not opening its market as promised when it joined the World Trade Organisation in 2001.
Beijing publishes a catalogue that details the sectors in which foreign investment is either encouraged, permitted, restricted or forbidden. It revises that list occasionally.

Source : Konaxis

Tourism Booming in China and Hong Kong Tourism Booming in China and Hong Kong(0)

That will come as good news for the city, whose tourism industry is powered by the millions of visitors who cross the border each year.
China’s top online travel service and Hong Kong beauty products retailer Bonjour, have joined hands to promote tourism on the mainland and in Hong Kong.
The two firms are launching a joint VIP card with special deals for cardholders travelling around China, Hong Kong and Macau. expects to see a 50 per cent jump this year in mainland customers travelling to Hong Kong.
In the first half of this year, more than 10 million mainland tourists visited Hong Kong, an increase of 23 per cent compared to a year ago.

Source : Konaxis

Schwarzenegger High-speed Rail Schwarzenegger High-speed Rail(0)

His own state budget $19 billion in the red, Schwarzenegger says he is hoping for some “creative financing” from Asia to help lower costs and get California’s proposed high-speed rail lines up and running.
Industry experts say cash-rich China may be best placed to help with funding, and less risk averse than others whose banks are still recovering from the financial crisis. That could prove a key competitive advantage as it goes head-to-head against better established high-speed rail rivals in Asia and Europe.
The U.S. is the world leader in freight railway technology but has almost no high-speed rail expertise. It will have to import the technology for the 13 regional projects that have won $8.5 billion in initial federal funding, with $2.5 billion more to come this year and hundreds of billions needed before lines are up and running.
China already has the world’s longest high-speed rail network, about 4,300 miles (6,920 kilometers) of routes, including nearly 1,250 miles (2,000 kilometers) that can run at top speeds of 220 miles per hour (350 kph). It aims to develop 9,900 miles (16,000 kilometers) of such routes by 2020.

Source : Konaxis

Beijing Auto Listing Beijing Auto Listing(0)

China’s fifth-biggest automaker said a new company will be set up this month to facilitate the listing plan.
BAIC said in August it would take over smaller rival Guangzhou Baolong, securing a foothold in the competitive southern China market.

Source : Konaxis

Foreign Investors Equal Treatment Foreign Investors Equal Treatment(0)

Foreign business groups complain that China’s efforts to promote “indigenous innovation” by favoring domestic companies violates the spirit of its World Trade Organization market-opening commitments.
The vice president, Xi Jinping, said Beijing would alter the procurement rules that prompted an outcry from foreign companies by giving preference to Chinese-developed technology in multibillion-dollar annual
government purchases of computers and other goods. He repeated promises that foreign-owned companies in China would be eligible to apply to be treated as domestic suppliers.

Source : Konaxis

200 Million Vehicles by 2020 200 Million Vehicles by 2020(0)

China must make it a top priority to develop fuel-efficient and alternative energy cars, the China Securities Journal said, citing Wang Fuchang, vice minister of the Ministry of Industry and Information Technology.
As of the end of 2009, there were 76.2 million vehicles in the country, according to government figures.
China’s auto sales have slowed in recent months, partially due to seasonal factors, but August saw a surprising 55.7 per cent year on year jump, boosted by Beijing’s new subsidies for energy-saving vehicles.
The surging car use has brought mounting concerns over pollution, soaring energy demand, and traffic gridlock.
A top official with the country’s environment minister, Liu Ziquan, was quoted on Monday as saying vehicle exhausts had overtaken other major sources as the top cause of air pollution in cities.

Source : Konaxis

Vodafone Sells China Mobile Vodafone Sells China Mobile(0)

The sale, announced late Tuesday, is the first in what is expected to be a series of sell-offs of Vodafone’s minority holdings as it seeks to focus on core markets in a bid to improve its share price.
Around 70 per cent of the net proceeds of the China Mobile sale, after tax and transaction costs, will be returned to shareholders through a share buyback, said Vodafone. The remainder will be used to reduce the group’s debt.
Vodafone, the world’s biggest mobile operator by revenue, initially bought a 2.18 per cent stake in China Mobile in 2000 and increased its holding to 3.2 per cent in 2002.
The group insisted that despite the sell-off it would continue cooperating with China Mobile.

Source : Konaxis

China Sky One Medical China Sky One Medical(0)

The company said several major private distributors chose to end their relationships with the company because they learned that China Sky One is required to disclose information about their business in filings with the Securities and Exchange Commission. According to China Sky One, the distributors said the disclosures led to greater scrutiny of their businesses by Chinese government regulators.
China Sky One Medical said it can replace the relationships with distributors over time, but it will have lower profit and revenue in 2010 because of the termination of the agreements. It will also have greater selling and marketing costs in the second half of 2010 as it develops new relationships with distributors.
The Harbin, China, company now expects annual net income of $26 million to $31 million, down from a prior estimate of $40 million to $41 million. China Sky One cut its revenue forecast to a range of $128 million to $136 million. It previously expected $160 million to $164 million.

Source : Konaxis

Contacts and information

Social networks

Most popular categories

Real Time Analytics