IN BRIEF

Finance

RQFII, QFII investment quotas hiked

China has expanded its renminbi-denominated Qualified Foreign Institutional Investors (RQFII) pilot program by increasing the investment quota by 50 billion yuan ($8 billion, 6 billion euros) from the previous 20 billion yuan, the China Securities Regulatory Commission said on April 3.

The RQFII mechanism, which was launched in December to facilitate the back flow of the yuan, allows qualified investors to invest yuan-based funds raised in Hong Kong in the mainland securities markets within a permitted quota.

The CSRC said in a statement on its website that it has also expanded the investment quota of Qualified Foreign Institutional Investors (QFII) from $30 billion (23 billion euros) to $80 billion.

Rules to improve IPO mechanism published

The China Securities Regulatory Commission (CSRC) on April 1 published draft rules aimed at increasing the liquidity of newly listed shares and monitoring pricings for initial public offerings in an attempt to curb speculative trading and regain investor confidence.

CSRC plans to scrap the three-month lock-in period for institutional investors in domestic IPOs and increase the scrutiny of IPOs that are priced at more than 25 percent above the comparable value of industry peers.

The new rules are aimed at "letting new shares reflect the actual value of companies, fostering balanced and healthy development of both the primary and the secondary markets as well as protecting investors' interests", the CSRC said on its website.

Technology

Apple, Foxconn revamp working conditions

In a landmark development for the way Western companies do business in China, Apple Inc said it had agreed to work with partner Foxconn Technology Group to tackle wage and working condition violations at the factories that produce its popular products.

Foxconn, which makes Apple devices from the iPhone to the iPad, will hire tens of thousands of new workers, clamp down on illegal overtime, improve safety protocols and upgrade worker housing and other amenities.

The moves come in response to one of the largest investigations ever conducted of a US company's operations abroad. Apple had agreed to the probe by the independent Fair Labor Association in response to a crescendo of criticism that its products were built on the backs of mistreated Chinese workers.

Auto

SAIC Q4 net up 67% on robust demand

Top Chinese automaker SAIC Motor Corp reported a 67 percent surge in quarterly earnings, citing solid demand for German and US cars made at its Shanghai ventures as well as a $4.4 billion asset purchase from its state parent.

SAIC and its partners, General Motors Co and Volkswagen AG, will continue to outpace their rivals in China as they roll out more quality new products in the coming months, industry observers say.

BYD Daimler launches new electric car brand

BYD Daimler New Technology Co, the 50-50 joint venture between German automaker Daimler AG and Chinese battery and car producer BYD Co, released a new brand for its battery-electric vehicles on March 30, joining the fierce competition in China's rising new energy vehicle sector.

The first show car under the new brand DENZA, will debut at the upcoming Beijing auto show in April, said the two companies.

They also said that DENZA electric cars, due to launch in 2013, are expected to be a leader in the new energy vehicle sector in China.

Beverages

Starbucks wide awake to market prospects

Starbucks Corp expects China to become its second-biggest retail market measured by the number of its stores by 2014, following just behind the United States, said a company executive.

John Culver, president of Starbucks China and Asia-Pacific, said the coffee chain is planning to move faster into smaller cities in the second-largest economy in the world.

China now is the fifth-largest market for the Seattle-based Starbucks, following the US, Canada, the United Kingdom and Japan.

Machinery

Caterpillar eyes huge growth in China

Caterpillar Inc, the world's largest construction machinery manufacturer, plans to double its 11,000-strong workforce in China by 2015, in a sign of its continued confidence in the sector.

Besides, Caterpillar's dealers in China are expected to significantly add to their workforce in the next four to five years due to China's growing economic clout, said Richard P. Lavin, Caterpillar's Group president.

Kevin Thieneman, chairman of Caterpillar (China) Investment Co Ltd, revealed that the company has nine more factories under construction in China, most of which will be completed this year.

Telecom

Nokia tries to dial up market share

Nokia Corp introduced its first phone that runs on Microsoft Inc's Windows Phone operating system to China in the Finnish mobile phone maker's latest bid to maintain its position in the country.

The new phone, the Lumia 800C, will operate on China Telecommunications Corp's code division multiple access network, a type of third-generation network, becoming the first Windows Phone device to use that system.

The Lumia 800C is a variant of the Lumia 800, which was released in October and is the flagship of Nokia's fleet of Windows Phone devices.

China Daily-Agencies