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Auto

Geely given green light to supply cars to APEC

Diplomatic gatherings and international events are giving domestic vehicle producers a chance to raise their global profiles.

Zhejiang Geely Holding Group Co Ltd, which made its name in the global market with the successful acquisition of Swedish luxury car brand Volvo in 2010, became the first domestic company to be designated an official car supplier for Asia-Pacific Cooperation meetings being held in China this year.

Geely will supply vehicles for the first senior officials' meeting from Feb 15 to 28 in Ningbo, Zhejiang province.

Retail

Lunar New Year shinesfor luxury outlets

Western luxury stores and brands have conjured up a range of activities to cater to high-spending Chinese shoppers during the Lunar New Year holiday.

For the first time in its 306-year history, one of London's most famous and traditional stores, Fortnum & Mason, on Feb 4 hosted a celebration for the Lunar New Year and the Year of the Horse.

Harrods increased its exposure in China in September when it became the first British retailer to launch a WeChat social media account.

Company

Trading put on holdamid Dongfeng talks

Dongfeng Motor Group Co halted trading of its stock in Hong Kong pending an announcement on its negotiations to buy a stake in PSA Peugeot Citroen. Trading was halted at 10:04 am on Feb 10, according to the Wuhan-based company's statement to the Hong Kong exchange. A spokeswoman declined to comment. Peugeot, Europe's second-biggest carmaker, said last month that it was in talks to sell stakes to Chinese partner Dongfeng and France's government in an initial step of a 3 billion euro ($4.1 billion) capital increase to fund a reorganization.

Finance

National capital account swings to surplus

China recorded a $242.7 billion surplus in its capital and financial account and a $188.6 billion surplus in its current account in 2013, according to preliminary data issued by the State Administration of Foreign Exchange.

This was a marked change from the $16.8 billion deficit in the capital and financial account in 2012. The country had a $193.1 billion surplus in its current account that year.

SAFE said that in the fourth quarter, China had an $81 billion surplus on its capital and financial account, including a 362.1 billion yuan ($59 billion) net inflow of direct investment.

Sweeping measures to maintain stability

China's central bank announced that it "will take comprehensive measures to maintain financial stability and hold the bottom line to prevent systemic and regional financial risks".

"We will strengthen our efforts in monitoring local government debt and solvency and explore the use of market mechanisms to solve problems in local government debt," said the People's Bank of China in a quarterly monetary policy report issued on Feb 8.

The major financing model for construction led by local governments in recent years stabilized GDP growth, but it also increased economic operational risks, according to the central bank.

China Daily - Agencies

(China Daily European Weekly 02/14/2014 page18)