IN BRIEF (Page 18)

China Eastern given nod to provide inflight Wi-Fi

China Eastern Airlines has become the first Chinese carrier to provide Wi-Fi services on both domestic and international flights.

The airline received approval from the Ministry of Industry and Information Technology to use AsiaSat-6 satellite for Wi-Fi services on aircraft from May 29. The service is expected to be launched in a month because the airline still needs to complete some formalities.

Portuguese bank to be Chinese-owned

Novo Banco SA of Portugal is set to fall into Chinese hands, with either Anbang Insurance Group Co or Fosun International Ltd most likely to clinch the deal worth more than 4 billion euros, Portugal's central bank said

It had received five non-binding offers for Novo Banco, with offers due to close by June 30.

Merger a done deal, train makers say

The train makers CSR Corp Ltd and China CNR have announced the completion of a merger and named Cui Dianguo, the former chairman of CNR, as the new entity's chairman. The two companies halted trading on May 7 to proceed with creating the world's biggest rail conglomerate in terms of sales through a share swap merger.

Investors invited to join water projects

The National Development and Reform Commission and the Ministry of Finance say private investors will be invited to join 12 large water projects, the first effort of its kind, the Shanghai Securities News reported on June 1. The pilot projects, comprising Fendou reservoir in Heilongjiang province and 11 other water projects, are expected to form a mature public-private-partnership model in the next two years through absorbing social capital.

Financial bodies to pay 6 percent VAT

The Ministry of Finance plans to introduce a 6 percent value-added tax for financial institutions, replacing the current 5 percent corporate tax on the sector, sources with direct knowledge of the matter said. The sources said the ministry is consulting banks, having notified them that the change will take place on Oct 1. The ministry did not answer calls requesting comment. The sources said the VAT is likely to raise the net tax burden of Chinese financial firms.

Construction starts for natural gas pipeline

China started pipeline construction to receive Russian gas from the Power of Siberia pipeline, Russian state gas company Gazprom said on June 2. Russia and China signed a gas deal worth $400 billion (360 billion euros) last year, which requires construction of the pipeline. It requires $55 billion in investment for the Russian part only, including bringing new gas fields online.

Manufacturing activity points to rebound

China's manufacturing business activity expanded slightly last month, indicated by a Purchasing Managers Index reading of 50.2, compared with 50.1 in April, the National Bureau of Statistics says.

The reading has remained above 50, the separation between contraction and expansion, for three consecutive months and suggests a slow rebound of the real economy, the bureau said.

COFCO commits to Belt and Road Initiative

The head of China National Cereals, Oils and Foodstuffs Corp, the country's largest food trader, has committed to deploying resources and manpower along the Belt and Road Initiative routes over the next five years to help guarantee China's food supply at home and to its key markets overseas.

The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives were put forward by President Xi Jinping in 2013, with the purpose of rejuvenating the two ancient trading routes and further opening up the markets.

Ning Gaoning, chairman of COFCO, said even though the initiative is still in its early stages of development, it has strong implications for many nations along the routes that count on agriculture and international agribusiness cooperation.

Ning said many countries along the routes are key global grain producers, and that COFCO will continue to seek investment and cooperation opportunities with them over the next five years.

Citibank has wealth builders in its sights

Citibank (China) Co Ltd is banking on its growing global presence and experience to provide holistic wealth management services for new wealth builders in China.

New wealth builders, or households with financial assets of $100,000 to $2 million, comprise the world's fastest-growing wealth segment when measured by growth trends in 32 countries, The Economist Intelligence Unit Ltd, the research and analysis division of the Economist Group, said in a report.

New wealth builders have $88 trillion in global assets, and the value is expected to reach $145 trillion by 2020 at a compound annual growth rate of 7.1 percent, the report said.

Securities accords signed with two more countries

China Securities Regulatory Commission said on May 29 that it signed memorandums of understanding with the National Bank of Kazakhstan and Azerbaijan's securities regulator to promote collaboration and exchanges in the capital markets. A commission spokesman said the two accords marked another milestone in the country's international collaboration with foreign regulators and financial players. The commission says it has now signed 62 such agreements with 58 countries and regions.

Iron ore derivatives trading jumps in May

Trading of iron ore derivatives on the Dalian Commodity Exchange climbed to a record last month as prices increased. Volume jumped 33 percent in May from a month earlier to 24.86 million contracts, or 2.49 billion metric tons, according to bourse data. The previous record was set in April. Compared with a year earlier, the volume more than tripled. Iron ore prices advanced in May as port stockpiles in China contracted.

Trade with China 'created 3 million jobs'

About 3 million Europeans have jobs because of exports from the European Union to China, the Joint Research Centre and the Directorate General for Trade of the European Commission say.

The share of employment supported by EU exports rose from 9.3 percent in 1995 to 13.6 percent in 2011, said a study the two bodies conducted on the impact of extra-EU trade on income and jobs.

In total, more than 31 million jobs in the EU depend on exports.

Citing the data from the World Input-Output Database, the study found that 10 percent of EU export-related employment was driven by the sales of goods and services to China in 2011, or 3 million jobs were given to Europeans in all EU member states due to trade with China in that year.

(China Daily European Weekly 06/05/2015 page18)