IN BRIEF (Page 18)

McDonald's to shutter 220 outlets in China, US

McDonald's Corp, the world's largest fast-food chain, is to close 350 outlets globally, including 220 in China and the United States.

The company said the move is in reaction to an 8.3 percent slump in first-quarter comparable sales in the Asia Pacific, the Middle East and Africa, which it blamed on the impact of what it called prolonged, broad-based consumer perception issues in Japan, and negative but improving performance in China.

Global comparable sales dropped 2.3 percent, reflecting negative customer traffic in all major segments, resulting in a 28 percent slide in the company's overall consolidated operating income.

Li finalizes purchase of UK train firm for $3.8b

Hong Kong billionaire Li Ka-shing's Cheung Kong Infrastructure announced on April 28 that it had finalized the acquisition of the United Kingdom-based Eversholt Rail Group for 5 billion pounds ($6.9 billion), as the tycoon's business empire continued to expand offshore. The purchase of one of UK's three main railway rolling stock companies follows an agreement last month that allowed Li to purchase UK telecom giant O2 for $15.2 billion.

Art buyers becoming more prudent

Art sales in the Chinese mainland accounted for 22 percent of the 51 billion euro ($55.62 billion) global market last year, a report from the European Fine Art Foundation said.

China's share of the auction business last year stood at the equivalent of 7.56 billion euros, or 30.7 percent of the world total, the report said. The top two auction houses in China are Poly International Auction Co Ltd, whose sales totaled 908 million euros, and China Guardian Auctions Co Ltd, with 621 million euros.

A substantial proportion of the activity in China is a result of the global reach of Sotheby's and Christie's, the report said.

Market insiders said that Chinese collectors are becoming more prudent and the prices they pay are getting more reasonable, signs that the market is maturing.

Beibu Bay trade zone to be expanded

The Guangxi Zhuang autonomous region is expected to extend its planned Beibu Bay Free Trade Zone to 100 square kilometers from 80 sq km to further reinforce its connections with Southeast Asia. The expansion plan is likely to get government approval by June, the Shanghai Securities News said on April 27. Beibu Bay FTZ is designed as an important platform for China to connect with the Association of Southeast Asian Nations, especially for trade, industry and finance.

Chinese factory gauge drops to new low

A Chinese manufacturing gauge fell to a 12-month low in April, suggesting government efforts to cushion a slowdown are yet to revive the nation's factories.

The preliminary Purchasing Managers Index from HSBC Holdings Plc and Markit Economics was at 49.2, missing the median estimate of 49.6 in a Bloomberg survey, which was also March's final reading. Numbers below 50 indicate contraction.

The first reading of the economy's health in April may deepen concern over a slowdown after first-quarter data showed the weakest economic expansion since 2009. Policymakers have stepped up efforts to halt the slide, cutting banks' reserve requirement ratio by 1 percentage point.

(China Daily European Weekly 05/01/2015 page18)