IN BRIEF (Page 24)

China Unicom gets 78b yuan investment boost

China United Network Communications Group Co Ltd, the country's second-largest mobile carrier by subscribers, has agreed to raise a total of 78 billion yuan ($11.7 billion; 9.93 billion euros; ￡9.07 billion) from strategic investors, as part of the Chinese government's push to rejuvenate State-owned enterprises with private capital. The investors include Chinese tech heavyweights Tencent Holdings, Baidu Inc, JD.com Inc, Alibaba Group Holdings Ltd, Didi Chuxing, Suning Commerce Group, as well as Chinese rail car manufacturer CRRC Corp and financial insurance enterprise China Life Insurance Co Ltd. Other tech companies such as Yongyou Software Co and Wangsu Science& Technology, and domestic industrial funds also participated in the investment.

Nation retakes top spot in US treasuries

China has reclaimed the position as the biggest foreign holder of US sovereign debt after boosting its holding for a fifth consecutive month with a strengthened yuan and eased capital outflow pressures. The country purchased $44.3 billion of US treasury bonds in June, the most in six years, bringing its total holding to $1.147 trillion, according to data released on Aug 15 by the US Treasury Department. China ceded the position to Japan as the biggest foreign lender to the US government last October as the country had spent a portion of its massive foreign exchange reserves to stem the depreciation of the yuan and curb capital outflows.

Foreign exchange regulator expects stability

China's foreign exchange regulator said on Aug 16 that it expects cross-border capital flows to remain stable in the future. Capital flows in July continued to be basically balanced, the State Administration of Foreign Exchange said. China's commercial banks sold a net $15.5 billion of foreign exchange in July, compared with a net sale of $20.9 billion in June, the regulator said.

Freight train to Poland launched

A new China-Europe freight train was launched on Aug 15, linking Poland with Ganzhou in East China's Jiangxi province. The train was loaded with 41 containers of furniture, electronic goods, clothes and toys. It departed Ganzhou for Warsaw Poland, passing through Manzhouli port in North China's Inner Mongolia autonomous region. According to Gui Jiaxiang, an official with the Ganzhou entry-exit inspection and quarantine bureau, Ganzhou has already established cargo train links with Russia and several Central Asian countries. Gui said links to Turkmenistan and Tajikistan are expected in August.

E-car newcomer Future Mobility raises $200m

Chinese electric-car venture Future Mobility Corp, co-founded by former BMW and Nissan Motor executives, has raised $200 million from investors, including China's Suning and Fullshare Holdings, in its latest round of financing. Most of the money will be used for product development, says Daniel Kirchert, Future Mobility's president. He has previously worked at Infiniti China, Nissan's luxury vehicle division, and BMW Brilliance Automotive. Future Mobility, which plans to launch three vehicles by 2022, has a premium midsize crossover SUV ready to go into the next "serious" phase of development, preparing for production and sale in the world's top two auto markets, China and the United States, as well as in Europe, Kirchert adds.

Geely tops expectations as Volvo pays dividends

Geely Automobile Holdings Ltd reported on Aug 16 that first-half profits more than doubled. The Chinese company saw its fastest earnings growth in eight years, as cars designed with its Swedish division Volvo won over domestic consumers. Although known at one point for its sparse designs, the Hangzhou-based manufacturer now has upmarket aspirations. Vehicles engineered with Volvo know-how, such as the GC9 sedan and the Boyue sport-utility vehicle, have been hot sellers in China, the world's biggest market. "So far in 2017, the group's performance has exceeded management's original expectations, despite a generally weaker market in China during the same period," the company said in a statement to the Hong Kong bourse.

China's FDI volume basically stable

Foreign direct investment into the Chinese mainland dropped by 1.2 percent year-on-year between January and July to 485.42 billion yuan ($72.66 billion; 61.69 billion euros; ￡56.31 billion), official data released by the Ministry of Commerce shows. A total of 17,703 newly funded foreign companies were established in the first seven months, up by 12 percent year-on-year, according to the ministry. "The FDI volume was basically stable from January to July, and the structure continued to optimize," says Lin Guijun, a professor at the University of International Business and Economics. "FDI to China is likely to remain stable in the second half of this year, especially in areas such as consumer goods and software development, leasing and information services, as foreign companies are realizing that China's growing middle class will have higher levels of disposable income and that the country is shifting to a productivity-driven growth model," says Lin.

Huge number of pilots will be needed

More than 253,000 new pilots will be needed in the next 20 years for the surging Asia-Pacific aviation market, Boeing China announced on Aug 14. Boeing predicted that from 2017 to 2036, the world's commercial aviation industry will require about 637,000 new commercial airline pilots, according to its newly released 2017 Pilot and Technician Outlook. The worldwide demand for commercial aviation industry professionals also includes 648,000 new commercial airline maintenance technicians and 839,000 new cabin crew members. The Asia-Pacific, Europe and North America markets top the list of global demand for professionals in the commercial aviation industry. In the Asia-Pacific region, the demand for new pilots, technicians and cabin crew is forecast to reach 253,000, 256,000 and 308,000, respectively.

Tourist arrivals in Ethiopia to increase

Tourist arrivals in Ethiopia in 2017 could reach 918,010, a 5.7 percent increase over 868,780 registered in 2016, a report said on Aug 16. More international routes opened by the national carrier Ethiopian Airlines contribute to the projected growth, according to a report released by British accounting firm PricewaterhouseCoopers. With a view to boosting tourist arrivals in Ethiopia and increasing the airline's domestic and international routes, Addis Ababa Bole International Airport is undergoing expansion that will enable it to significantly increase its annual passenger handling capacity. Fully funded with a loan from China's Exim Bank, the $345 million airport expansion project will increase its annual passenger handling capacity from the current 7 million to 22 million. PwC also cited the increase of international hotels in Ethiopia's capital Addis Ababa, and an increased reputation for conference tourism for the projected growth. International hotel chains such as Sheraton, Marriott and Radisson have set shop in Ethiopia, while the construction of five other international hotels is ongoing. PwC's calculation is based in part based on a rebound in the hospitality sector in 2017 after political unrest in parts of Ethiopia in 2016 hit the East African nation's tourist numbers hard.

(China Daily Africa Weekly 08/18/2017 page24)