What's news

Finance

Sino-French fund targets mature exporters

Sino-French equity investment fund Cathay Capital is seeking innovative and export-led enterprises in both countries as its newest fund prepares to invest in a Chinese food company, its president told China Daily.

"We choose to invest in mature and innovative enterprises with development potential, which are also export-led and international," said Cai Mingpo, president of Cathay Capital. According to Cai, Cathay's Sino-French Midcap Fund is planning to invest in a Chinese food company and help it expand in Europe and the United States. The average investment of the fund will be between 25 million euros ($31.7 million) and 50 million euros.

UK taps lenders for RMB bond issue

The UK government has selected three lenders to sell its first yuan-denominated bonds as it seeks to develop Europe's offshore trading center for the currency. Bank of China Ltd, HSBC Holdings Plc and Standard Chartered Plc will organize the benchmark-sized sale of securities, the UK Treasury said.

Proceeds from the offering, the world's first non-Chinese sovereign bond in yuan, will be used to finance the UK's foreign-exchange reserves.

Resources

Coal tariffs introduced amid falling prices

China, the world's biggest coal consumer and producer, reintroduced import tariffs on the fuel as domestic mining companies face challenging times. The Finance Ministry imposed a levy of 6 percent on coal, including 3 percent on anthracite and coking coal, on Oct 15, according to a statement published on its website.

Similar tariffs were suspended in 2007, while a tax on brown (low quality) coal was resumed in August 2013.

Variable coal tax to be based on sales

A resource tax on coal, based on sales rather than production, will be introduced from Dec 1. The rate will be between 2 and 10 percent, tax authorities said. The Ministry of Finance and the State Administration of Taxation said in a joint statement that the tax rate will be decided by provincial governments.

In addition, "resource compensation fees" will be scrapped, also from Dec 1, to reduce the financial burden on domestic coal miners amid falling prices.

Trade

Steel exports surge as demand wanes

Steel exports hit a record high last month as mills in the world's leading producer country turned to overseas markets to make up for falling domestic demand. Exports of 8.52 million metric tons were up 73 percent from a year earlier and 9.8 percent from August, according to the customs authorities. Outbound shipments in the first nine months of 2014 rose to 65.3 million tons, up 39 percent on the year.

Prices in China, which produces almost half of the world's steel, fell more than 15 percent this year due to overcapacity and falling demand at home.

energy

Areva hopeful of early nuclear deal

Areva SA Chief Executive Officer Luc Oursel said talks on selling a nuclear-fuel recycling plant to China may take a long time as the French manufacturer begins commercial negotiations after setting technical terms. "When these type of talks start, you never know when they will be completed," Oursel said on Oct 15 in an interview at the World Nuclear Exhibition in the Paris suburb of Le Bourget. Construction of two nuclear reactors in Taishan, China, is going well, and Areva is working on winning a contract next year or in 2016 to supply two more for that project, he said. The French atomic-energy plant builder is cutting spending and paring investments to restore profit following cost overruns at projects in Europe.

Entertainment

Universal theme park set for Beijing

The government has approved a Universal Studios theme park in Beijing. The overall investment in the Universal Beijing theme park will be more than 20 billion yuan ($3.2 billion, 2.57 billion euros). It will be jointly owned by Beijing Shouhuan Cultural Tourism Investment Co Ltd, a consortium of four state-owned companies, and Universal Parks & Resorts, a business unit of Comcast NBC Universal.

The park and support facilities will occupy a 120-hectare site located northwest of the intersection of the Beijing-Harbin Expressway and the East Sixth Ring Road in Tongzhou.

Investment

Foreign investment moves gather speed

China has outlined plans to allow citizens to invest in overseas stocks and property as well as let the nation's companies sell yuan-denominated shares abroad, boosting efforts to internationalize the currency. Citizens will be able to buy equities and real estate via a Qualified Domestic Retail Investor program, Wang Dan, a deputy director-general at the central bank, said on Oct 9 at a conference in Beijing.

Efforts are also underway to give citizens access to yuan capital markets in Singapore and London, she said, though no timeframe was given.

Company

Gingko Tree eyes Munich office park

Gingko Tree Investment Ltd, a unit of the agency that manages China's foreign currency reserves, is in talks to buy a Munich office park that's valued at as much as 500 million euros, according to two people with knowledge of the plan. Gingko Tree is negotiating with property owners HIH Hamburgische Immobilien Handlung GmbH, based in the German city of Hamburg, and New York-based RFR Group, said the people, who asked not to be named because talks are ongoing. The property is rented to Siemens AG.

Anta enters alliance with NBA China

ANTA Sports Products Ltd announced in Beijing that it is the official marketing partner of NBA China and licensee of the NBA.

This allows the company to use the NBA logo as well as logos of the 30 NBA teams, legendary teams from the past and NBA events on its basketball shoes and accessories. This is the first time the NBA has launch co-branded products with a Chinese sportswear brand. "ANTA-NBA" co-branded basketball shoes for leading teams like the Rockets, Spurs, Bulls and Lakers are available and co-branded basketball shoes and accessories are on sale at more than 2,000 ANTA stores in China.

JooMoo to be global partner of Expo Milano

Expo Milano announced that the JooMoo Group will be its global ticket and creative arts partner. The deal will make the group the largest ticket seller for the event outside of Italy. The group will also have an Amazing Asia Pavilion at the expo and organize a series of road shows in China and Asia.

Expo Milano 2015 will focus on nutrition and our planet's resources. With this in mind, the JooMoo Amazing Asia Pavilion has decided to use water as its symbol which it hopes will boost public awareness about the importance of the resource.

Anbang eying Woori Bank stake

Chinese Anbang Insurance, the new owner of the iconic Waldorf Astoria New York, is in talks with South Korea's Woori Bank concerning its controlling stake, Chinese media reported. Anbang Insurance is looking to take over more than 30 percent of Woori Bank's stake, Chinese media quoted Korea Economic Daily as saying.

Both Anbang Insurance and Woori Bank were not available for comment. The South Korea government said earlier this year that it hopes to sell its 57 percent stake in Woori Bank by the first half of 2015.

China Daily - Agencies

(China Daily European Weekly 10/17/2014 page18)