IN BRIEF (Page 24)

Bank suspends cash injections into market

The People's Bank of China, the country's central bank, suspended cash injections into the market on May 31, as interbank liquidity remained stable. The bank conducted 210 billion yuan ($30.6 billion; 27.8 billion euros; ￡23.9 billion) of reverse repos, which was offset by the same amount of maturing reverse repos, resulting in no cash being pumped into or drained from the market. The operations included 180 billion yuan of seven-day reverse repos priced to yield 2.45 percent, and 30 billion yuan of 14-day contracts with a yield of 2.6 percent, according to a bank statement. Lending costs in the interbank market remained low. The benchmark overnight Shanghai Interbank Offered Rate, the cost at which Chinese banks lend to one another, rose 3.55 basis points to 2.6365 percent on May 31.

Deutsche Bank eyes Belt and Road bonanza

Deutsche Bank AG, Germany's largest lender, said on May 31 that it plans to finance $3 billion worth of projects in partnership with the China Development Bank in the countries and regions involved in the Belt and Road Initiative. The two banks agreed to work together over the next five years to support the projects. The move will make Deutsche Bank one of the first global lenders to participate in the initiative. The two parties also agreed to establish a joint team to cooperate on projects promoting the initiative, including joint lending and project financing that are beneficial to the clients of both lenders.

Shanghai to promote real economic growth

Shanghai authorities have vowed to encourage real economic growth by supporting innovation, entrepreneurship and effective market-oriented business conditions.

The incremental growth of strategic emerging sectors will account for 20 percent of the city's GDP and output of strategic emerging sectors will account for 35 percent of gross industrial output value in Shanghai, according to Chen Mingbo, director of the Shanghai Commission of Economy and Information. "There used to be a debate over whether Shanghai, a metropolitan and a financial center, needs an industrial sector and manufacturing. The answer, we can say now, is yes-Shanghai needs manufacturing and industrial enterprises, and we are making them innovation-driven, high value-added ones," said Chen.

Cruise ship due for delivery in 2023

China's first domestically manufactured cruise liner will be delivered in 2023, followed by a delivery rate of one vessel per year between 2024 and 2028, according to a senior executive from one of the companies involved in the China-built cruise ship project. The first China-made cruise liner, 323.6 meters long, will be delivered in six years, according to the Shanghai Observer, citing Wu Qiang, general-manager of China State Shipbuilding Corp. To cash in on the nation's booming cruise market, a ￡2.6 billion ($3.33 billion; 3 billion euros) agreement was signed in October 2015 between CSSC, China Investment Corp and Carnival Corp. The three parties agreed to set up a joint-venture cruise operation based in Hong Kong.

Haier's Russian unit churns out refrigerators

Chinese home appliance maker Haier announced that its refrigerator factory in Russia had rolled out its 100,000th product, one year after the plant was launched. Haier opened the 24,000-square-meter plant in Tatarstan in April 2016 with an investment of $50 million. The factory mainly produces air-cooled, frost-free refrigerators, and has 500 staff members. The group adapted the design of its fridges to meet local demand, including energy-efficient and high-capacity units about 2 meters tall. The plant has also reduced shipping time and costs to central Asian countries. Previously, it would take a month to transport products from China to Uzbekistan. Currently, it takes about a week to send the products from the Russian plant.

New direct flight to link Xi'an, Aswan

A new direct flight linking Xi'an, Shaanxi province, with Aswan, Egypt, will be launched on July 13. The direct flight will depart from Xi'an every Thursday with a travel time of 10 hours. Xu Mingzheng, a Shaanxi tourism official, said the flight will be operated by Egypt's Air Leisure airline and will use an Airbus A330-200. The new route connects Xi'an, the starting point of the ancient Silk Road, with Aswan, a popular tourist city in Egypt. The Shaanxi official said the flights will help strengthen exchanges between the two cities and boost their economic development.

NDRC grants new oil import quotas

China has granted two private oil refiners a final crude import quota, the National Development and Reform Commission said on June 1. The NDRC said it granted Shaanxi Yanchang Petroleum Group a final crude import quota of 3.6 million metric tons per year and Jinao Science and Technology Hubei Chemical a quota of 2.3 million tons per year.

China revises rules on soybean futures

China revised contract rules of No 2 soybean futures on May 31, the Dalian Futures Exchange said. The step will help investors hedge their risks in soybean imports and provide a domestic pricing benchmark for soybean. The Dalian Futures Exchange did not provide details about how the rules will be changed. The move came as China's soybean imports were set to climb in May and August as buyers book larger cargoes, according to several analysts' forecasts. China, the world's largest soy buyer, imported a record amount of soybeans in April, driven by increasing demand for protein.

CIC leads the race for unit of Blackstone

China Investment Corp is the frontrunner in the race to acquire Blackstone Group LP's European logistics business Logicor for 12 billion euros ($13.4 billion; ￡10.4 billion). Temasek Holdings and Mapletree Investments Ltd are also still in the bidding process, according to a person familiar with the situation. The news was first reported by Estates Gazette, a property magazine in the United Kingdom. Blackstone, which created Logicor in 2012, is cashing out as demand for European logistics properties from investors and tenants grows.

Ethiopia set to host China Trade Week

Ethiopia is to host China Trade Week from July 4 to 6, with the expected participation of dozens of Chinese companies from various sectors. This event is the first of its kind for Chinese firms in Ethiopia, with so far 65 companies confirming their attendance to the trade week, said a statement on May 31 by Nebiyu Lemma, managing director of Prana Promotion, one of the event organizers. They will come from sectors including arts and crafts, toys and gifts, energy, lighting, home electronics, construction materials, machinery, food and beverage and textiles. Prana expects more than 4,000 visitors and exhibitors to attend the event, although it said a lack of exhibition space could limit the final list of exhibitor companies.

(China Daily Africa Weekly 06/02/2017 page24)