Business briefs

Data

PMI rebound indicates more business growth

The official Purchasing Managers' Index (PMI) increased to 53.4 in March from 52.2 in February.

The official increase was shadowed by a PMI report from HSBC released on April 1, which rose slightly to 51.8 in March.

The figures indicate that the world's second-largest economy may continue to expand at a rapid pace this year, and avoid the risk of a "hard landing", analysts said.

The official PMI rebounded from February's six-month low, according to the China Federation of Logistics and Purchasing.

The March figure is the first gain after three consecutive months of decline since December.

A PMI reading above 50 indicates expansion, while one below 50 suggests contraction.

Real estate

Property sales fall as tightening policies bite

China's key cities experienced a big fall in property sales last month over the same period in 2010, showing that tightening real estate policies are beginning to bite, China Index Academy said in a report on April 5.

Among the 30 large- and medium-sized cities the academy monitors, nearly 80 percent saw a year-on-year drop in property sales, with Beijing leading the trend with a fall of 48 percent.

However, on a monthly basis, these cities still reported a robust growth in property sales, led by second-tier cities, including Baotou in the Inner Mongolia autonomous region and Dalian in Liaoning province, which reported growth of more than 100 percent.

Property prices in major cities dipped in March, with those in Shanghai declining 7.57 percent month-on-month to 13,806 yuan (1,480 euros) per square meter. Prices in Guangzhou also dropped by 5.65 percent and Shenzhen fell by 3.07 percent.

Energy

Suntech Power, Peak win UN contract

Suntech Power Holdings Co Ltd, China's largest solar panel maker, and Peak International Trade (Tianjin) Co Ltd, have won a $81 million (57 million euros) contract to provide portable solar power systems to United Nations (UN) peacekeeping missions.

The deal is the largest single UN contract to have been won by Chinese companies.

Solar products procured by the UN are portable solar-power systems, which will be delivered to the International Peacekeeping Force and its subordinate entities globally. The contract may be extended by two years, or even longer if the operation is successful in the coming three years.

"It is currently a framework agreement because the final purchasing list has not been decided upon yet. Suntech will provide products in accordance with the UN's detailed requirements," said Zhang Jianmin, a senior press manager with Suntech.

An employee checks solar power panels. China's largest solar panel maker Suntech Power Holdings Co Ltd and a Tianjin-based trading company Peak International have won a 57 million euro contract from the United Nations. Jerome Favre / Bloomberg

Finance

Trading of offshore yuan products rises

The trading volume of yuan-denominated products outside China will jump threefold this year, driven by expectations the currency will strengthen, according to Barclays Capital.

The average daily volume of offshore yuan products may reach $1.5 billion (1.05 billion euros) by the end of 2011 from $500 million at the end of last year, said Patrick Law, the Hong Kong-based head of emerging-market rates trading for Greater China at Barclays.

Auto

King Long to deliver better results overseas

Xiamen King Long United Automotive Industry Co Ltd, China's largest bus maker by shipments, is aiming to achieve overseas sales of 5 billion yuan (535 million euros) in five years and is looking at mature markets as a growth engine, company officials said.

Zhu Guoqiang, vice-president of King Long, said that last year the company sold 6,600 buses to overseas customers for $170 million (119 million euros). The growth of Chinese bus exports to Europe has been momentous, he said.

In 2010, the country exported buses and coaches to 12 European countries including France, Germany and Britain. Chinese-made buses hold the No 2 spot in the market in Italy with 200 buses sold to the country every year.

Valeo aims to double turnover by 2015

The French automotive components and systems supplier Valeo Group aims to double its turnover in China by 2015, by increasing investment and strengthening its research and development capability.

"We expect to double our sales revenue by 2015, based on 2010 sales of $1 billion (700 million euros) in the Chinese market, by bringing investment of between 400 million euros and 500 million euros to our Chinese operations over the next five years," said Jacques Aschenbroich, Valeo's chief executive officer, on April 1.

During the past five years, Valeo has expanded in China with the rate of sales growth registering an average 30 percent annually.

Trade

Poultry imports banned from Netherlands

China has banned the imports

of poultry products from the Zeeland province of the Netherlands where an outbreak of H7N1 bird

flu virus was reported on March 22, China's quarantine watchdog said.

Any poultry and poultry products by mail or carried by tourists from the Netherlands will be returned or destroyed, officials from China's General Administration of Quality Supervision, Inspection and Quarantine and the Ministry of Agriculture said in a statement on April 3.

The imports ban came into effect on April 2.

Machinery

Milling machine maker looking for profit

Nicolas Correa SA, Spain's biggest maker of milling machines by sales volume, expects to post profits in the next few years on rising sales of machine tools in China, chairman Jose Ignacio Nicolas-Correa said.

"We expect to turn profitable in the second half of this year and continue reporting net income for the next few years," Nicolas-Correa said. "The environment remains challenging but the worst is over."

The company, based in Burgos, northern Spain, forecasts its first full-year profit in three years, as demand for milling equipment, used to shape metals and other solids into components, benefits from stronger sales of machine tools in countries including China.

Global consumption of machine tools is expected to climb 27 percent in 2011 from a year earlier

and reach 78 billion euros in 2014 compared with 42 billion euros in 2010, the 62-year-old executive said.

The company plans to at least double last year's sales of 31.1 million euros, the chairman said.

Aviation

Airbus targets corporate market

Airbus plans to sell five new Airbus Corporate Jetliners (ACJ) in China each year during the next five years, the company said in Shanghai on April 6.

To boost sales in the Chinese market, the company adjusted

the cabin design to reflect traditional Chinese culture, the company said.

These jets, called "Phoenix", are worth over $100 million (70 million euros) each and cater to the color and furniture preferences of Asian customers.

Airbus also specially created

the red wine-colored interior for the Chinese market, the company said.

China has become the world's fastest growing market for corporate jets, holding 25 percent of ACJ's total world sales, according to the company.

China Daily-Agencies