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Iron ore drops to lowest price since May

Iron ore prices fell to the lowest point in almost two months as Europe's debt crisis slowed global growth and curbed demand in China, the world's biggest buyer.

Iron ore with 62 percent content delivered to the port of Tianjin fell 2 percent to $130.10 a dry ton on Monday, the lowest price since May 23, according to data compiled by The Steel Index Ltd. Prices are down 6.1 percent this year.

First A-share ETF starts trading in Hong Kong

The first exchange-traded fund backed by stocks listed in the mainland began trading on Tuesday in Hong Kong. It is also the first equity ETF listed in Hong Kong traded in renminbi.

The fund is the first to give investors who don't have special permission to invest in the mainland companies access to returns that are determined strictly by gains and losses in mainland shares. The 24 other A-share ETFs listed on the exchange are trading in Hong Kong dollars and use derivatives to replicate the indexes, according to a statement from Hong Kong Exchanges & Clearing Ltd.

PetroChina's Jilin refinery completes maintenance

PetroChina Co completed major maintenance on its Jilin refinery on July 11, China National Petroleum Corp, the parent company, said in its online newsletter on Tuesday. This is the first major maintenance since the refinery upgraded to an annual crude-processing capacity of 10 million metric tons, and lasted 56 days, CNPC said.

NDRC welcomes foreign investment in new energy

China will encourage foreign investment into industries including high-end manufacturing, technology and new energy, said National Development and Reform Commission Chairman Zhang Ping.

The United States and China will start cooperating on infrastructure construction, Zhang said at the US-China Investment Cooperation Forum in Beijing.

40 trade remedy probes suffered in H1: Ministry

The Ministry of Commerce said on Tuesday that more trade remedy probes have been launched against Chinese products in the first half of the year amid the global economic slump.

In the first six months, 18 countries and regions have made 40 trade remedy investigations against Chinese products, a jump of 38 percent from a year earlier, ministry spokesman Shen Danyang said at a regular news conference.

These investigations involved $3.7 billion, a surge of 76 percent from last year, the spokesman said.

Moutai reports strong growth in first half

Moutai, China's national liquor served at official occasions and banquets, saw its output reach 24,000 tons in the first half of 2012, up 15.3 percent year-on-year.

The total liquor output of the Kweichow Moutai Group stood at 42,000 tons, as the group also produces other kinds of spirits, Yuan Renguo, group chairman, said on Monday in the southwestern province of Guizhou, where the distillery is located.

The group's pretax sales revenue reached 17.8 billion yuan ($2.8 billion) in the first six months, up 38 percent from a year ago, according to Yuan.

Nation's motor vehicles top 233 million in June

The number of motor vehicles in China in June topped 233 million, including 114 million automobiles and 103 million motorcycles, according to figures released on Tuesday by the Ministry of Public Security.

The number of vehicles has maintained rapid growth, as it shows an increase from last year of 3.67 percent, or 8.26 million, the Traffic Management Bureau of the ministry said, adding that the number of automobiles has increased by 7.66 percent during the same period.

Eight provinces have more than 10 million motor vehicles each, while Shandong and Guangdong have more than 20 million. Automobiles in five cities - Beijing, Chengdu, Tianjin, Shenzhen and Shanghai - have topped 2 million, according to the bureau.

China provides most loan to Cambodia for development

China is the largest provider of financial assistance to Cambodia for agriculture and irrigation development in the last three years, Cambodia's Minister of Finance Keat Chhon said on Tuesday.

Since 2010 to date, he said, Cambodia has received a total of $561 million and a total grants of $22 million from South Korea, India, China, Japan and France.

"Of the amount, China's soft loan to Cambodia is $436 million," he said while attending an economic conference at the National Assembly. "China is playing a very important role to promote Cambodia's agricultural development and irrigation system construction."

Electricity use to grow 7 percent in 2012

China's electricity use, a key indicator of industrial activity, is expected to grow 7 percent this year to reach 5.1 trillion kilowatt-hours as the country's pro-growth policies gradually take effect, an official forecast on Monday.

Yu Yanshan, deputy director of the general office of State Electricity Regulatory Commission, said China's power use will gradually stabilize despite slowing consumption in the first half of the year.

"During the January-to-May period, growth of power use in the eastern regions saw narrower declines, which means the economic downward pressure is easing," he said.

Japanese automaker Subaru to recall 7,412 cars in China

Japanese automaker Subaru will recall several types of vehicles exported to China, after defects in the engines' water pumps came to light, China's quality watchdog said on Monday.

The recall will affect 7,412 vehicles in China that were produced in 2008, including Impreza models made between May 23 and Oct 8 that year; Forester models made between May 22 and Nov 13; and Legacy models made from June 4 to Oct 18, according to a statement issued by the General Administration of Quality Supervision, Inspection, and Quarantine.

Gazprom experts visit shale gas field to boost ties

Gazprom sent technical experts to a Chinese shale gas deposit owned by China National Petroleum Corp, boosting cooperation even as a supply contract stalls.

The two State-controlled energy producers have agreed on a series of visits by Gazprom personnel to CNPC's shale gas fields, the Russian company said on Tuesday in a statement.

Gazprom has been discussing a contract with CNPC to supply Russian gas by pipeline to China since at least 2004. The deal has stalled amid disagreements over prices.

Ghana granted $1.2b pipeline loan from China

China will start releasing a $1.2 billion loan to Ghana by the end of August to build a gas pipeline and processing plant for the Jubilee oilfield.

The loan is part of a broader $3 billion facility from China Development Bank Corp for a total of 12 projects, Ghanaian Deputy Finance Minister Seth Terkper said in an interview in Beijing. China Petroleum & Chemical Corp will carry out the pipeline and plant construction, he said on Tuesday.

The loan is part of an expanding relationship between Ghana and China, which will receive 13,000 barrels of oil a day from the country, Vice-President John Dramani Mahama said in April. China is Africa's largest trading partner and has signed agreements worth billions of dollars with governments on the continent as it seeks natural resources to feed economic growth.

China Daily - Agencies

(China Daily 07/18/2012 page14)