IN BRIEF (Page 18)

Realty prices continue recovery

New home prices in Chinese cities rose month-on-month in July for the third straight month, a survey shows, reinforcing the upward trajectory since the second quarter.

Despite being a traditionally slack season, the average home price in 100 cities rose by 0.54 percent to 10,685 yuan ($1,717; 1,566 euros) per square meter, slightly slower than the 0.56 percent gain in June, according to a report by the China Index Academy, a research unit of SouFun Holdings Ltd.

The data show new home prices strengthened from June in 46 of the 100 cities monitored, down from 53 a month earlier, while the number of cities that saw a decline rose to 53 from 46.

Audi trims forecast amid market volatility

Audi AG has trimmed its global annual sales forecast, as the world's second-biggest luxury car manufacturer faces volatile markets in China and elsewhere. Audi will deliver more cars this year than last, the Germany-based carmaker said in a statement. The company had previously forecast it would sell "significantly more" cars.

More banks to issue deposit certificates

The government will allow 102 banks to issue large-scale certificates of deposit, up from only nine previously, according to Market Interest Pricing Self-Discipline Mechanisms, an industry association.

The expansion is aimed at letting more banks participate in the pricing of China's financial products and promoting the country's interest rate reforms, the association said.

Government orders surge to $278 billion

Government procurement reached 1.73 trillion yuan ($278 billion; 253 billion euros) in China last year, up 5.6 percent year-on-year, with the growth rate dropping 11.6 percentage points, according to statistics from the Ministry of Finance. Annual growth in the nation's government procurement slowed and the structure was optimized, the ministry said.

Fund to boost urban rail traffic

A fund has been set up by China Communications Construction Co Ltd and China Potevio Co Ltd, both state-owned companies, to finance urban rail networks.

The money will support sustainable growth of rail traffic, and will play an active role in the 13th Five-Year Plan (2016-20) and the Belt and Road Initiative, said Xing Wei, president of China Potevio. The fund will target subway construction in Harbin, Heilongjiang province, and Shandong province's Qingdao.

Siemens confident despite slump

German trains-to-turbines group Siemens said its third-quarter sales dropped 8 percent in China, while Chinese new orders fell 2 percent. Orders fell by 4 percent in Europe, the Commonwealth of Independent States, Africa and the Middle East, including a 14-percent drop in Germany. Sales fell 5 percent in Europe but rose 4 percent in Germany. Siemens earlier said it was sticking to its full-year outlook despite a softening market environment.

Airline starts flights to Denmark

Beijing Capital Airlines, a subsidiary of China's fourth-largest carrier, Hainan Airlines, will launch direct charter flights from Beijing and Hangzhou to Copenhagen in Denmark. The Beijing route is expected to start on Sept 6, while the first Hangzhou flight to Copenhagen is penciled in for Sept 3.

Private capital to build, operate railways

China will fully open its railway sector to private investment as part of the government's efforts to boost the slowing economy, the National Development and Reform Commission, has announced.

Private capital will be encouraged in the construction and operation of railways through joint ventures and sole ownership, with a focus on intercity railways, suburban corridors and feeder lines, the country's top economic planner said in a statement.

It also said private investors will be allowed to operate the transportation services of the freight network and the "going global" projects of railway networks to ease bottlenecks in the sector.

Carlyle invests in vending machine firm

Private equity company Carlyle Group has invested 530 million yuan ($85.2 million; 77.6 million euros) in Beijing Ubox Technology & Trade Co Ltd, a Chinese vending machine operator. The company announced it had made the investment through Carlyle Beijing Partners Fund, a renminbi fund it established with the support of the Beijing government.

Fresh guarantee fund being created

The State Council has said it will set up a state-owned credit guarantee fund to lower risks in the financing guarantee sector. It also said it would increase fiscal support for credit-guarantee firms and offer tax breaks.

Online red envelopes come under tax net

The State Administration of Taxation issued a notice on July 28 to collect a 20-percent tax from online "red envelopes", Beijing Times reported.

According to the new regulation, individuals should pay a personal income tax for online "red envelopes" they receive from enterprises as contingent income, and the tax, of which the threshold is still unknown, will be withheld by the enterprises that provide the "red envelopes".

E-commerce trade tops $2.63 trillion

Despite an anemic economy, China's e-commerce trade soared last year thanks to improved Internet infrastructure and an increase in cellphone users. The transaction volume of Chinese e-commerce platforms totaled 16.39 trillion yuan ($2.63 trillion; 2.4 trillion euros) in 2014, up 59.4 percent year-on-year, according to the National Bureau of Statistics.

Regulator: IPO freeze to stem rout

China's securities regulator has said the halt in new share offerings is a necessary measure to stem the ongoing stock market rout, and assured that the direction of the country's long-term, market-driven reform of the capital market has not changed.

The regulator dismissed market concerns that the recent swings may delay the much-anticipated launch of the registration-based program for initial public offerings.

The new IPO system is widely expected after amendments are made by the top legislature to the Securities Law, which is to have a final review in October.

NDRC outlines industry priorities

China will step up efforts to build more regional growth centers in the second half of this year as well as promote international cooperation in areas such as the Pearl River Delta and the Pan-Bohai Sea, the National Development and Reform Commission, has said. There is likely to be more economic support for underdeveloped regions, it said.

(China Daily European Weekly 08/07/2015 page18)