Business China back to homepage

China Doubles Korea Bond Holdings China Doubles Korea Bond Holdings(0)

Korean Treasury bonds held by Chinese investors rose 111 percent to 3.99 trillion won ($3.4 billion) in the first half of the year, data from the Seoul-based Financial Supervisory Service show.

China?s holdings of Treasuries fell 6 percent in the first half to $843.7 billion, Department of Treasury data released this week show, making it harder for President Barack Obama to finance record debt sales to sustain the U.S. economic expansion. Societe Generale SA predicts Chinese KTB purchases, which accounted for 19 percent of foreign inflows in the first half compared with 10 percent last year, will spur further gains.

China?s holdings of South Korean notes account for little more than 0.1 percent of its $2.45 trillion reserves. The increase in the first six months compares with $20.1 billion pumped into Japanese debt.
KTBs have handed investors a 5.6 percent return this year in dollar terms, delivering a profit every month, according to an index compiled by HSBC Holdings Plc. The advance marks the best winning streak since March 2007.

The value of KTBs owned by China totaled 1.87 trillion won on Dec. 31, up from 79.6 billion at the end of 2008, FSS data show. Foreigners? total holdings increased by 18.6 trillion won in 2009 and climbed 11.3 trillion to 67.8 trillion in the first half. That?s equivalent to 6.3 percent of South Korea?s outstanding government debt.

Source : Konaxis

China Southern Airlines Profit RMB 2.07 Bln China Southern Airlines Profit RMB 2.07 Bln(0)

The Guangzhou-based carrier said its net profit for the six months ended June 30 was CNY2.07 billion, according to international accounting standards, up from a net profit of CNY25 million a year earlier.

Revenue rose 40% to CNY33.94 billion from CNY24.27 billion a year earlier. Like last year, the carrier didn’t recommend a first-half dividend.

The company completed the disposal of its equity interest in MTU Maintenance Zhuhai Co. in the first quarter and booked a CNY1.08 billion gain in the first half, the statement said.

The firm added that in the second half of 2010, there remains “sound momentum for rapid growth,” though it also noted risks from a faltering global economy as well as challenges from the operation of high speed railways.

China Southern Airlines carried 36.2 million passengers in January-June period, or 17.1% more than a year earlier. Its passenger load factor, or the proportion of seats filled on each flight, rose 4.1 percentage points to 77.9% during the same period. Cargo throughput was up 37.6% to 512,000 metric tons, from 372,000 tons a year earlier.

Source : Konaxis

Tsingtao Brewery First-Half Net Rises Tsingtao Brewery First-Half Net Rises(0)

Net income rose to 830 million yuan ($122 million), or 0.61 yuan per share, from 639.8 million yuan, or 0.49 yuan, a year earlier, China?s second-biggest beer company said in a Hong Kong stock exchange filing Friday. Sales rose 9.4 percent to 9.81 billion yuan.

Tsingtao and rival China Resources Enterprise Ltd. are expanding production and adding variety to increase market share as Chinese demand rises. Per capita beer consumption in China was 30 liters (7.9 gallons) last year, exceeding the global average of 27 liters, according to Seema International Ltd.
Sales volume growth rose 2.9 percent in the first half, Tsingtao said Friday. Sales of its Tsingtao-brand beer rose 17 percent, it said.

Tsingtao Brewery will increase production capacity in the second half, the statement said. The company also will ?actively seek? opportunities for mergers and acquisitions to increase market share.

Source : Konaxis

China Industrial Growth Slows China Industrial Growth Slows(0)

Growth in spending on factories, real estate and other fixed assets in the first seven months of the year fell to 24.9 percent, down from 25.5 percent for the first half, the National Bureau of Statistics reported.

Retail sales rose 17.9 percent, down from 18.2 percent growth for the first half of the year.

The consumer price index, or CPI, rose 3.3 percent over a year earlier, its fastest rate this year as summer flooding wrecked crops and disrupted shipping.
The jump was driven by a 6.8 percent surge in food costs. But analysts expect inflation to fade quickly.

A statistics bureau spokesman said the declines in economic indicators for July were “not big” and could be positive for official efforts to improve China’s economic efficiency. He gave no sign the government plans to change policy.

The central bank reported Wednesday that total lending by China’s banks fell to 532.8 billion yuan ($78.7 billion), down nearly 12 percent from June’s 603.4 billion.

Also in July, growth in exports fell to 38.1 percent from June’s 43.9 percent. Australian miners and other companies that have enjoyed a windfall from Chinese demand have warned that their sales growth will slow.

Source : Konaxis

China Car Demand Eases China Car Demand Eases(0)

After last year’s breakneck growth in sales, consumers are holding back as China slows down and massive government stimulus measures including car-buying incentives are scaled back, they say.

But foreign automakers are still confident in the Chinese market, with some boosting production capacity as they bank on increased long term demand from the nation’s expanding middle class.

Auto sales totalled 9.02 million units in the first half, up 48 percent from a year ago, according to the China Association of Automobile Manufacturers.

Sales have slowed since the start of the year, from a 124 percent on-year increase in January to just a 17.2 percent jump in July, but 2010 sales are still forecast to top 15 million units — about a 20 percent on-year increase.

Chinese automaker BYD Co. — backed by US billionaire Warren Buffett — nevertheless cut its 2010 sales target by 25 percent to 600,000 after achieving only 36 percent of its original target of 800,000 units in the first half.

US auto giant Ford — which just sold struggling Swedish brand Volvo Cars to China’s Geely Group — in July posted a 6.3 percent drop in passenger car sales in China, but remains optimistic.

General Motors, which has a greater presence in China than Ford, said its sales had grown 22.2 percent year-on-year in July, after selling more than 1.2 million units in the first half of 2010, up 48.5 percent from a year earlier.

Honda Motor, which aims to boost annual production in China by nearly 30 percent to 830,000 vehicles by 2012, said Friday its July auto sales in China rose 12 percent from a year earlier to 56,688 units.

Source : Konaxis

Gome Planning Legal Action Gome Planning Legal Action(0)

Gome filed a writ of summons in the High Court of Hong Kong against Huang for a claim for damages, the company said in a statement to Hong Kong?s stock exchange Thursday.
Huang, also known as Wong Kwong Yu, was in May sentenced by a Beijing court to 14 years in prison after being found guilty of bribery and insider trading. The SFC accused Huang and his wife of stock-market fraud in August last year.

The arrest and conviction “caused a great deal of uncertainty for the company,” Gome said. This “has had, and to some extent continues to have, a significant adverse effect on activities, and in particular the ability to access capital.”

Huang and wife Lisa Du Juan, are being investigated by Hong Kong?s Securities and Futures Commission for allegedly having Gome buy back shares in 2008 to help them repay a HK$2.4 billion ($309 million) personal loan. Huang still owns 34 percent of Gome, according to data compiled by Bloomberg.

Source : Konaxis

Acer Second-Largest Asian PC Maker Acer Second-Largest Asian PC Maker(0)

Acer will operate Founder?s planning, marketing and supply chain management, with the Beijing-based PC maker operating Acer?s after-sales service, it said in a statement on its website. The companies will jointly develop products aimed at the China market, it said.

Acquisitions in the U.S. and Europe failed to boost Acer?s share in Asia where it trails Lenovo Group Ltd. and Hewlett- Packard Co. Joining with Founder will also help achieve Acer?s goal to be No. 3 in China, Acer said.

Acer was sixth in China with a 3.9 percent share in the first quarter, trailing Lenovo in the top spot, while Founder was fourth at 7.6 percent, according to data from IDC.

Combined China revenue will climb to $2.5 billion next year, Acer said in the statement. China accounted for 5 percent of revenue last year, Stella Chou, a public relations spokeswoman said.

Acer had 13 percent of the global computer market in the second quarter, trailing Hewlett-Packard Co. on 17.4 percent, according to Gartner Inc. Acer?s rank in Asia Pacific will climb to No. 2 with 12.3 percent as a result of the Founder cooperation.

Source : Konaxis

Huayi 50 Movie Theater in China Huayi 50 Movie Theater in China(0)

The company, which opened its first two cinemas in the past two months, aims to add about 50 theaters within three years and may spin off the business, Wang, 40, said in an interview this week. The Beijing-based studio has also held talks to collaborate with Alibaba Group Holding Ltd., founded by Huayi Vice Chairman Jack Ma, he said.

The producer of the country?s highest-grossing film aims to ease the shortage of theaters that Wang says is hampering growth in the nation?s movie industry. While China has quadruple the U.S. population, it has almost 20 percent fewer theaters and box-office receipts were less than a 10th the estimated $10.6 billion generated in the U.S. and Canada last year.

Huayi may open an additional five theaters this year alone, Wang said.

Wang said Huayi may seek to market its film merchandise online and has consistently been in talks to collaborate with Hangzhou-based Alibaba. He declined to comment on specifics.

Source : Konaxis

Unused Plots in China Unused Plots in China(0)

The banking regulator will use the list to conduct a risk assessment, the Beijing-based newspaper reported. About 80 percent of the unused plots may be repossessed by the government, according to the report.

The provinces of Hainan, Jiangsu and the cities of Beijing and Guangzhou have the most unused land, accounting for almost a fourth of all the unused plots, the newspaper reported.

Source : Konaxis

China Property Policies China Property Policies(0)

China should stabilize market expectations by keeping its policies consistent, strengthen property curbs in some cities and increase housing supply during the second half of this year, Wang Yulin, a researcher at the Ministry of Housing and Urban-Rural Development, was cited by the newspaper as saying.

China introduced tougher measures this year, including higher mortgage rates, lending curbs, and bans on third homes in an effort to rein in the country’s robust property market.

The Shanghai Securities News reported in a separate article on Monday that government real estate curbs have strained developers’ cash flow, forcing some smaller firms to sell stakes for liquidity.

Source : Konaxis

Contacts and information

Social networks

Most popular categories

Real Time Analytics