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Temasek seeking rise in investment quota

Temasek Holdings Pte Ltd., Singapore's state-owned investment company, said on Thursday it has applied to raise its investment quota under China's qualified foreign institutional investor program. "I can confirm that Temasek applied for an increase in the QFII quota," Tan Yong Meng, director of corporate affairs at Temasek, told EJ Insight in an emailed reply. But Tan declined to provide more details.

Insurers' investment choices 'could be expanded'

China may widen insurers' investment scope to include derivatives and bank credit-backed securities after the industry regulator said it would give the companies more choices to invest in earlier this month, according to Guosen Securities Co.

Insurance companies may also be allowed to conduct margin trading and short-selling of securities, Guosen's Shenzhen-based analysts Shao Ziqin and Tong Chengdun wrote in an e-mailed report on Thursday, citing draft rules that regulators circulated to seek feedback.

Investment ceilings may be raised for corporate bonds, unlisted shares and real estate, according to Guosen.

Credit Suisse forecasts years of 'weak' growth for China

Credit Suisse Group AG cut its forecast for China's economic expansion this year to 7.7 percent on falling corporate profits and an investment slowdown, and said that the nation faces years of "weak" growth.

"Investment is unlikely to see a meaningful rebound in the foreseeable future," Tao Dong, the bank's chief China economist, said in a note on Thursday.

"Government stimulus could moderate the downside risks to growth and perhaps cushion the down-cycle, but we do not see it providing sustainable upward growth momentum."

His previous GDP estimate was 8 percent.

Trade surplus smaller as proportion of GDP: WTO

China's merchandise trade surplus has fallen significantly as a share of GDP and bilateral surpluses with the United States and the EU are significantly smaller when measured net of imported components used in China's exports, said a report by the WTO Secretariat.

The report was published during the fourth review of the trade policies and practices of China from Tuesday to Thursday. Trade Policy Reviews are an exercise, mandated in the WTO agreements and the review of Chinese trade policies and practices take place every two years in view of the country's size.

Ikea stores see the light with help from Hanergy

Swedish home furnishing group Ikea said that it will partner with Hanergy Holding Group to install solar photovoltaic panels on all Ikea-owned buildings in China over the next three years, as part of its goal to only use renewable energy to power its buildings.

The solar panels will provide 10 to 15 percent of all the electricity needed to run Ikea stores and 100 percent of the electricity needs of Ikea distribution centers in China, saving around 6,000 tons of carbon dioxide emissions each year.

Shanxi Coking Coal gets taste for meat processing

Shanxi Coking Coal Group is partnering with Shuanghui Group, China's largest meat processing company, to enter the meat processing industry as the company strives to diversify its business.

The agreement includes a butchering and meat processing unit that will generate 3 billion yuan ($474 million) to 4 billion yuan in revenue annually.

Shanxi Coking Coal is the largest coking coal company in China.

Tiered pricing for household electricity use to start July 1

China will implement tiered pricing for household electricity use from July 1, the National Development and Reform Commission said on its website on Thursday.

A three-tiered progressive pricing system will replace the current "one price fits all" system. Under the new system, the more electricity a household uses, the higher price it will have to pay.

The plan suggests that electricity charges for first-tier users, which covers 80 percent of households, will remain the same.

Court to delay Apple trademark decision

Guangdong Higher People's Court will delay its decision on Apple Inc's appeal of a ruling denying its ownership of the iPad trademark in China to let the company pursue mediation with Proview Technology (Shenzhen) Co.

The court won't release a ruling on Apple's Feb 29 appeal so long as both parties continue talking, Zhao Le, a spokesman for the court's foreign affairs office, said in a phone interview on Thursday.

Apple's revenue in China tripled to $7.9 billion last quarter, helped by surging demand for products including the iPad tablet computer.

Bank 'hires five traders' in Singapore

Bank of China Ltd's investment bank unit has hired five traders for energy and base metals in Singapore, according to two people with direct knowledge of the matter.

China's third-largest bank is set to start commodities trading in the Southeast Asian nation in July, said the people, who declined to be identified because the information is confidential. Three of the employees will deal in fuel oil, gasoil and naphtha, and the other two will trade in metals, they said. The bank's media office was unavailable for comment.

Exports, investment cast shadow on growth outlook

Deutsche Bank AG reduced forecast for China's growth this year as weakness in exports and investment drag on the world's second-biggest economy.

Deutsche Bank lowered its forecast to 7.9 percent from 8.2 percent, according to e-mailed research notes. The prediction indicates the weakest growth since 1999 and compares with a 9.2 percent expansion last year.

China, India media sectors to grow faster

China and India's media and entertainment industries are projected to expand at more than twice the pace of developed countries in the next five years as rising income boosts spending, PricewaterhouseCoopers LLP said.

Growth will be 12 percent a year through 2016 in China, and 14 percent in India, PwC predicted in a report this week.

Expansion will be 5.2 percent in the United States and 3.4 percent in France, PwC said, forecasting slower growth rates for the United Kingdom, Japan and Germany.

China is projected to generate $78 billion of consumer spending over the next five years in the industry, including movies, TV shows and newspapers, compared with India's $20 billion, PwC said.

Deutsche appoints banker for global transactions

Deutsche Bank AG appointed Carl Wegner as head of global transaction banking for Greater China on Wednesday.

Based in Shanghai, Wegner will be responsible for promoting the strategic growth of global transition banking in the Deutsche Bank Greater China region.

Wegner previously headed Standard Chartered Bank's transition banking operations in Taiwan.

DreamWorks plans Shanghai base, entertainment complex

The Oriental DreamWorks Project jointly operated by the American DreamWorks Animation SKG Inc and its Chinese counterparts will be based in Xuhui district, Shanghai, it was announced at the 2012 Shanghai film industry conference, held on Wednesday.

The venture will produce animated films based on traditional Chinese elements.

It also plans to construct an entertainment area with cinemas, restaurants, bars and theaters in the city center.

Central bank: No change in property lending rate

The People's Bank of China reiterated on Thursday that the lower limit of individual property lending interest rates would be maintained at 70 percent of the benchmark lending rate, although it reduced the lower limit of corporate lending rates from 90 percent to 80 percent of the benchmark rate on June 8.

In a statement published on its website, the central bank said regulators have been constantly guiding and regulating individual property lending "effectively" and "prudently".

Agencies - China Daily

(China Daily 06/15/2012 page14)