Business briefs

Banking

New yuan lending declines in July

China's new yuan lending fell to its lowest this year in July to 492.6 billion yuan (53.6 billion euros), due to the monetary tightening measures.

The People's Bank of China, the central bank, said in a report on Aug 12 that while policies would remain "prudent", there should be a targeted increase of lending in sectors such as agriculture and affordable housing.

New yuan lending in July was 141.3 billion yuan lower than in the previous month, and 25.2 billion yuan lower than in July 2010, the central bank said in a statement on its website. Loans failed to reach the general market estimate of around 550 billion yuan.

The broad money supply (M2) rose 14.7 percent year-on-year to 77.29 trillion yuan by the end of July, but the rate of increase, the lowest in six years, was 2.9 percentage points lower than the same period in 2010. The nation has set the whole-year target for M2 growth at 16 percent.

Telecom

Nokia, China Mobile plan Windows phones

Nokia Corp plans to introduce phones using Microsoft Corp's Windows operating system, based on China Mobile Ltd's self-developed third generation (3G) mobile networks in the near future, said the company's executive vice-president Colin Giles.

Giles made the remarks at a news briefing in Beijing on Aug 12, when China Mobile, the world's biggest telecom carrier by users, officially launched the commercial version of Mobile Market-Nokia store, a joint-brand mobile application outlet, for Chinese TD-SCDMA mobile phone users.

But Giles did not reveal further details of Nokia's TD-SCDMA Windows phones and the launch date.

Huawei to enter UK phone market

Network equipment maker Huawei Technologies Co plans to sell its first own-brand mobile phone in the United Kingdom, taking on manufacturers using Google Inc's Android software in one of Europe's most competitive handset markets.

Having initially focused on making handsets for carriers, China's largest phone-equipment supplier will introduce the "Blaze" device as early as next month. Huawei is targeting a market share of 4 percent to 5 percent within 12 months, said Mark Mitchinson, the company's UK executive vice-president.

Huawei's push into the UK, following its first mobile network deal in the country in May, marks the company's biggest step into devices in western Europe. Sales outside China accounted for 65 percent of Huawei's 2010 revenue. Sales abroad grew three times faster than in its home market.

Energy

Gas imports double in July as usage peaks

Natural gas imports more than doubled year-on-year to 2.7 billion cubic meters (cu m) in July, boosted by increasing demand for the fuel to cut emissions.

The July imports included 1.2 billion cu m of natural gas transported from Central Asia by pipeline and 1.5 billion cu m of liquefied natural gas (LNG), the National Development and Reform Commission (NDRC) said in a statement on Aug 15.

The surge in July helped imports for the first seven months double to 16.8 billion cu m. The rise in imports signaled the country's rapid growing appetite for natural gas. China's apparent demand for the fuel, which includes domestic production plus net imports, rose 24.5 percent year-on-year in July to 10.3 billion cu m, the highest in five months.

Apparent demand reached 73.4 billion cu m from January to July.

Agriculture

Tunhe, Unilever seek sustainable growth

China Oil & Foodstuffs Corp (COFCO) Tunhe Co Ltd said it is working with Unilever (China) Co Ltd to improve irrigation systems in its tomato fields in the Xinjiang Uygur autonomous region, a major Chinese agricultural base.

It said it has invested 168 million yuan (18.3 million euros) in water-saving irrigation systems in the region.

For its part, Unilever has sent scientists to train farmers in the efficient use of fertilizers, which has helped increase crop output, said Liang Xia, a field manager at the Changji Tomato Production Co Ltd.

The next step for Unilever and COFCO Tunhe is to expand sustainable farming into more fields to improve food quality and safety and provide the ability to trace 100 percent of the food products.

Pharmaceuticals

Shanghai Pharma eyes overseas deals

Drug maker Shanghai Pharmaceuticals Holding Co, which has almost $2.5 billion (1.7 billion euros) in cash may make its first acquisition outside China by the end of the year, spurred by a plunge in pharmaceutical stocks and a stronger yuan.

Targets may include mid-sized drug makers in the United States or Europe that would help the Shanghai-based company, China's second-largest drug distributor, expand its portfolio of medicines, Chairman Lu Mingfang told reporters during a conference call on Aug 15. He didn't identify any candidates.

Overseas purchases are becoming cheaper after shares of healthcare companies slumped in Europe as the region's sovereign debt crisis deepened and as investors in the US speculated the economy will contract.

Since 2010, Shanghai Pharma has bought, or agreed to make, at least nine acquisitions to expand its distribution business.

Finance

More investment options for yuan

The nation will soon allow foreign investors to use yuan to buy up to 20 billion yuan (2.18 billion euros) worth of mainland securities, Chinese Vice-Premier Li Keqiang said Aug 17, one of a string of moves aimed at boosting the currency's international role.

Speaking in Hong Kong, where he was joined by central bank governor Zhou Xiaochuan and other officials for the launch of China's biggest-ever offshore yuan bond, Li also announced plans to further expand yuan bond sales in the territory and to bolster its position as the only offshore yuan trading center.

Trade

Anti-subsidy probe on EU potato starch

China will prolong its anti-subsidy probe by one month on potato starch imported from the European Union, the Ministry of Commerce said on Aug 15.

The investigation will be completed before Sept 30, 2011, one month after the previous deadline, since the case was "special" and "complicated," according to a statement posted on the ministry's website.

China launched an anti-subsidy investigation on imports of EU-made potato starch on Aug 30, 2010 at the request of the China Starch Industry Association.

It is China's first-ever anti-subsidy probe into imports from the EU.

China Daily-Agencies