IN BRIEF (Page 18)

Economy

China world's largest electronics market

China became the world's largest market for consumer electronics last year, surpassing North America, said Steve Koenig, senior analyst at the Consumer Electronics Association, based in the US. "North America will have to settle for second place," he said. "The rapid pace of change, and how fast China has become a global force, is more of the surprise." This trend has been visible for years, but last year was the turning point when consumer electronics sales in Asian emerging countries exceeded those in North America, reported tech website venturebeat.com.

Technology

Technology project in urbanization push

Beijing, Shanghai, Guangzhou and Chongqing are among 68 cities and areas taking part in a pilot project set up to spur the development of e-commerce, 4G telecom networks and cloud-based services, the Ministry of Industry and Information Technology says. Smaller cities in 25 provinces and autonomous regions were tapped for the project as the government looks for ways to speed up urbanization. Along with developed coastal areas, less-developed inland cities, such as Xi'ning in Qinghai and Karamay in the Xinjiang Uygur autonomous region, were included.

Finance

Rules adopted on shadow banking

The State Council has approved new rules to strengthen regulation of the shadow bank lending that has helped fuel an explosion in debt since 2008, in the latest effort to deal with growing financial risks, sources told Reuters on Jan 6. The wide-ranging rules say that shadow banking is a "beneficial" and "inevitable" consequence of financial development and provide an official definition of the term. The regulations include new restrictions on banks' cooperation with trust companies, securities brokerages and other intermediaries that banks work with to carry out off-balance-sheet business.

Currency tax being considered: agency

China's top foreign exchange regulator has vowed to consider new measures, including a transaction tax, to curb currency speculation, after hot money inflows intensified last year.

Yi Gang, head of the State Administration of Foreign Exchange, made the comments in an article in the Communist Party journal Qiushi.

Yi wrote that a Tobin tax, a tax on all spot foreign currency transactions that is named after Nobel economist James Tobin, should be "studied in depth".

It is believed to be the first time that a Chinese regulator has commented publicly on the tax, which Tobin first suggested in 1972.

Currency

Bank of China issuesrenminbi bonds in London

Bank of China's London branch has announced it is issuing renminbi-denominated bonds, which it says gives European investors an additional high-quality renminbi product.

The renminbi bonds, put on the market on Jan 8, are the first issued in London by the UK branch of a Chinese bank, and are being listed on the London Stock Exchange. Funds raised will all be retained in London to support the further development of the London offshore renminbi market as well as UK-China bilateral trade and investment, the bank says. Bank of China is the global coordinator, and HSBC, UBS and Bank of America Merrill Lynch have been appointed as the joint lead managers for the issue.

Regulation

Free trade zone rules streamlined

The central government has modified a series of regulations for the China (Shanghai) Pilot Free Trade Zone, in an effort to allow greater involvement of foreign investors in formerly restricted areas such as telecommunications.

The application of 32 legal clauses from various free trade zone laws and regulations was suspended in the 28.78 sq km zone, which is a test field for future economic reforms, a statement on the website of the State Council said.

Among them, 24 clauses, most of which are requirements for investment approval, will be replaced by the free trade zone's negative list, which covers areas that are off-limits to foreign investors.

Foreign companies are allowed to invest in any of the sectors that are not on the negative list.

China Daily-Agencies

(China Daily European Weekly 01/10/2014 page18)