- Language Tips
Gold supply gap to expand further in 2015: Ministry
China's gold consumption is expected to exceed 1,000 metric tons in 2015, but its gold output will only reach 450 tons, the Ministry of Industry and Information Technology said on Monday. China will strengthen the geological exploration of gold, promote related companies' mergers and reorganization, accelerate their technological upgrading and strengthen global resource allocation, said a statement from the ministry. China is expected to increase its gold reserves to between 8,000 and 9,000 tons during the 12th Five-Year Plan (2011-15), 20 percent higher than during the 11th Five-Year Plan (2006-10).
Prospects looking up for steel industry
China's steel industry will see an improvement in the fourth quarter and in 2013 after posting huge losses in the first three quarters, an industry insider said. Liu Zhenjiang, vice-president of the China Iron and Steel Association, told a steel industry forum on Saturday that most large and medium-sized steel firms have shaken off losses since October, but their main steel business is still suffering. Data from the association showed Chinese steel companies posted total losses of 5.5 billion yuan ($874.32 million) from January to September, compared with total profits of 38.7 billion yuan during the same period last year.
Economy tipped to grow by 8.4 percent in Q4
China's economic growth will pick up in the fourth quarter after slowing for seven consecutive quarters, due to booming domestic consumption and increasing infrastructure investment, according to a report on Sunday. The economy is expected to grow by 8.4 percent year-on-year in the October-December period, up from the 7.4-percent growth seen in the third quarter, the lowest level since the first quarter of 2009, according to the report by the Institute of Economic Research of Renmin University of China.
China Machinery plans $300m Hong Kong IPO
China Machinery Engineering Corp, the State-owned contractor with projects in Nigeria, Serbia and Cote d'Ivoire, plans to raise about $300 million in an initial public offering in Hong Kong, two people with knowledge of the matter said. The Beijing-based unit of China National Machinery Industry Corp may begin to gauge demand for the IPO later this week, the people said. China Machinery shares may start trading in Hong Kong in December, they said.
China Resources seeks Carrefour stake: Report
China Resources Enterprise Ltd is seeking to buy a stake in Carrefour SA, the French financial daily Les Echos reported on Monday, citing unidentified people. The Hong Kong-listed firm may be interested in a partnership with the French retailer, the report said. Vincent Tse, a Hong Kong-based head of strategic planning at China Resources, declined to comment. Calls to Carrefour were not answered outside office hours.
Policies on the way to revamp key sector
The Chinese government will introduce policies to encourage mergers and the reorganization in the steel industry by the end of the year, an official at the Ministry of Industry and Information Technology said on Saturday. The ministry will announce further guidance on mergers and the reorganization of key industries, in which the steel industry will be included, said Zhang Dechen, head of the steel sector of the ministry's Raw Material Department.
21% rise in cards issued by banks, says PBOC
China's central bank, the People's Bank of China, said in a report on Monday that banks and financial institutions had issued about 3.4 billion bank cards by the end of the third quarter, up 21.2 percent from a year earlier. The figure showed a 5.4 percent increase from the end of June, the bank said. A total of 3.1 billion debit cards were issued, up 21.4 percent year-on-year, while 318 million credit cards were issued, an increase of 18.8 percent.
Corporate governance improves at listed firms
The level of protection being given to shareholders in listed companies in China is improving with the introduction of more mature levels of corporate governance, according to the latest China Corporate Governance Index. Li Weian, professor and director of the Corporate Governance Research Center at Nankai University, said the governance and management operation of listed companies in China is "moving forward effectively", but admitted there were still "certain shortcomings" in some areas.
Wuliangye, ABC to set up finance company
Wuliangye Yibin Co Ltd, the listed company of Wuliangye Group Co Ltd, announced it will partner with ABC International to establish a finance company. Wuliangye Group Co Ltd is the manufacturer of Wuliangye, one of China's most famous liquor brands. ABC International is the Hong Kong listed company of Agricultural Bank of China, one of the four largest banks in China. The registered capital of the finance company will be 2 billion yuan ($321 million), of which 720 million yuan will come from Wuliangye Group Co Ltd.
Adoption of yuan payments declines in October
Yuan international payments fell by 10 percent in October over the previous month, a report by SWIFT RMB Tracker showed on Monday. The tracker provides monthly reporting on key statistics to understand the progress made by the yuan toward becoming an international currency. October was the second consecutive month that saw a decline in yuan payments, leading to it being demoted to 16th place in the world currency payment table. Institutional transfers, as opposed to trade settlements, are driving the adoption of the yuan, representing 98 percent of the total payment value for the United Kingdom and 94 percent for Singapore in October, the report said.
Home prices to rise in major cities in 2013
China's home prices will diverge next year, with first-tier cities likely to see moderate growth while some second- and third-tier cities experience a drop, an expert said at a forum over the weekend. "There is still strong demand in Beijing, which could be evidenced by the market recovery initiated in the pre-owned home market," said Nie Meisheng, honorable chairman of the Chamber of Real Estate Commerce at the All-China Federation of Industry and Commerce. According to Nie, the pre-owned home market is dominated by self-use home buyers and there are very few investors. A large rebound in prices is unlikely, she added.
Social financing to reach 15 trillion yuan this year
China's total social financing could reach 15 trillion yuan ($2.38 trillion) this year, representing 26 percent of gross domestic product in 2012, a report from Barclays showed on Monday. The share of bank credit in total social financing is now 55 percent, down from 58 percent in 2011 and 70 percent in 2008, while that of debt financing has jumped to 14.3 percent, from 9.5 percent in 2011 and 8 percent in 2008, according to the report. Meanwhile, there are renewed concerns about the financial and fiscal risks associated with the rapid expansion of non-bank credit financing.
GDP target for 2013 likely to be set at 7.5 percent
The first annual economic work conference since the 18th National Congress of the Communist Party of China will set the economic growth target for 2013 at 7.5 percent, China Business News reported on Monday. Citing an anonymous source, the newspaper said the meeting, which is expected to be held in December, is likely to set the annual gross domestic product growth target for the next year at 7.5 percent, the same as this year's target. The CPC Central Committee holds the economic work conference at the end of every year. It sets the tone for the next year's economic priorities and policy.
State Council approves cut in bank card charges
The State Council has approved a plan to reduce bank card fees, with the rate expected to fall by 23 to 24 percent from Feb 25, 2013, Sina.com reported on Tuesday. Sina.com reported that the People's Bank of China, the nation's central bank, had issued a notice to this effect to the country's commercial banks. According to the notice, the change only involves consumer transactions in China. The reduction in the fees - which will continue to vary according to sector - will be between 23 and 24 percent, with fees in the entertainment industry being cut 37.5 percent.
Most mainland stocks fall ahead of earnings data
Most mainland stocks declined before the release of industrial earnings data on Tuesday. Liquor maker JiuGuiJiu Co fell by the 10 percent daily limit for a second straight day after its products were found to have excessive levels of plasticizer. But Hebei Iron & Steel Co gained among steelmakers after Xinhua News Agency said the industry may perform better this quarter.
China Daily -Agencies
(China Daily 11/27/2012 page14)