IN BRIEF (Page 18)

Banking

Bank declares war on 'zombie' financing

The People's Bank of China has reiterated its resolve to root out "zombie" local government financing vehicles this year and ensure that urbanization funding moves through standard market channels.

The central bank said in a statement that it will "exhaustively clean up" local government financing vehicles that "have poor credit, ambiguous functions and unsustainable financial conditions".

These vehicles are separate agencies created by local governments to finance massive spending on highways, stadiums or public works. Their creation followed the 2008 stimulus program that helped China rebound quickly from the global financial crisis and subsequent economic downturn.

Finance

Renminbi transactions take off in London

Rapidly rising renminbi transaction volumes are supporting London's ambition of becoming the Western world's offshore yuan center, according to figures issued by the City of London Corp.

Trade finance transactions using the Chinese currency totaled 27.94 billion yuan ($4.61 billion) in the first half of 2013, up from 13.8 billion yuan a year earlier.

Daily average trading volume of renminbi-related foreign exchange products rose to $22.3 billion, up from $11.6 billion.

Auto

Dongfeng drives bargain with Peugeot Citroen

French automaker PSA Peugeot Citroen agreed at a board meeting that the struggling company will "in principle" accept capital investment from the French government and Chinese partner Dongfeng Motor Corp.

The two investors will put a combined 3 billion euros ($4.11 billion) equally into PSA under terms yet to be defined, Agence France-Presse cited unnamed sources close to the deal as saying on Jan 19.

French newspaper Journal du Dimanche reported that the investment would give the French government and Dongfeng Motor a 15 percent stake in PSA, making them major stakeholders.

The company's largest shareholder, the Peugeot family, will also add a 100 million euro investment to maintain its holding in the company.

Luxurious 'self-rewards' are on a roll

Luxury carmaker Rolls-Royce Motor Cars, a unit of Germany's BMW Group, said it sold 3,630 cars last year, its fourth consecutive record-breaking year. The carmaker is considered to be the epitome of luxury in the car industry as its models are priced above $250,000.

While many markets experienced impressive sales growth in 2013, including the UK and the Middle East, up by 7 percent and 17 percent respectively, it is China that has become the No 1 global market for the company. Sales in China grew 11 percent in 2013 and accounted for 28 percent of overall sales, up from 25 percent in 2012.

Technology

First official iPhone 5S sold in China

Apple Inc Chief Executive Officer Tim Cook on Jan 17 drummed up iPhone 5S sales in Beijing by shaking hands and giving out signatures to customers at an outlet of China Mobile Ltd, his new Chinese partner.

Yet whether Cook's common touch will turn into sales growth remains a question after research firms warned the country's increasing desire for smart devices would start subsiding this year.

The CEO wrapped up his third China trip in 12 months after celebrating the first contract iPhone sold by China Mobile, the world's largest telecom carrier by subscriber numbers.

IPO

Two Wanda units may be listed this year

Dalian Wanda Group Corp, one of China's largest property conglomerates, plans to take two subsidiaries public this year, according to founder and Chairman Wang Jianlin. Analysts said the two companies most likely to be listed this year are Wanda's movie theater chain businesses and its commercial property arm, although Wang didn't disclose details. Wanda Cinema Line, China's largest movie theater chain by box office revenue, has been approved by regulators and is currently in line for an IPO, while the group's commercial property company is still in the middle of preliminary examinations.

Telecoms

ZTE aims to sell 60m smartphones in 2014

ZTE Corp, China's second-largest telecom equipment maker, said it aims to sell more than 60 million smartphones this year and to become the world's third-largest smartphone vendor by 2016.

Zeng Xuezhong, ZTE's executive vice-president, said the company sold more than 40 million smartphones last year and that it expects a significant increase in sales this year.

Policy

Govt to boost lending to labor-intensive sectors

China will take steps to boost bank lending and subsidies to small and medium-sized businesses in labor-intensive industries, many of which are facing a tougher business environment. A joint statement issued by nine government departments outlined broadly how smaller firms would be assisted, but did not give details on what kind of lending help will be extended. Among the bodies issuing the statement were the China Banking Regulatory Commission and the Ministry of Industry and Information Technology.

Energy

CNOOC optimism on output goals

CNOOC Ltd, China's biggest offshore oil and gas developer has said that it plans to produce 422 to 435 million barrels of oil equivalent this year.

"We are confident of meeting our production target of 6 to 10 percent annual growth from 2011 to 2015," said Li Fanrong, chief executive officer, at a news conference in Hong Kong.

According to the company, about 69 million BOE of the output target in 2014 will come from Nexen Inc. The acquisition of Nexen raised CNOOC's output after the smooth integration of operations in the past year.

CNOOC's net 2013 production is estimated at 412 million BOE, including 61 million BOE from Nexen.

Trade

Trade zone negative list to shrink by June

An updated negative list businesses that are either off-limits to foreign investment or that require advance approval may be ready before June, giving the green light to investors to pursue more opportunities in the China (Shanghai) Pilot Free Trade Zone, an official of the area said recently. The current list is expected to become smaller. Jian Danian, deputy-director of the FTZ's administration, said during the Shanghai People's Congress that a new version of the list will be released within the next few months and that changes in customs and the legal system are also being devised to encourage more foreign investment.

Shenyang imports, exports expand 12.4%

Shenyang Customs said the total import and export value of Shenyang, the capital of Liaoning province, reached $14.33 billion in 2013, a year-on-year increase of 12.4 percent. Export volume totaled $7 billion, up 17.3 percent, and import volume was $7.33 billion, up 8.1 percent. The capital's foreign trade deficit was $330 million. According to Shenyang Customs, Shenyang's foreign trade growth was 2.6 percentage points higher than that of Liaoning province.

China Daily-Agencies

(China Daily Africa Weekly 01/24/2014 page18)