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China Power Investment announces record profit
China Power Investment Corp, one of the country's five largest State-owned power producers, announced on Thursday a record profit of 5.33 billion yuan ($846.03 million) for 2012. Revenues rose 13.76 percent from a year earlier to 179.4 billion yuan, Lu Qizhou, the company general manager, said at an annual work meeting. The company's hydropower sector made a profit of 3.98 billion yuan in 2012, almost double the previous year. Its thermal power sector reported a profit of 3.57 billion yuan last year, compared with a loss of 3.64 billion yuan in 2011, Lu said.
Economics annual conference to be held
The China Economics Annual Conference (2012-13), held by the China Center for International Economic Exchanges, will take place on Jan 26 in Beijing. The conference aims to study the problems facing China, to grasp economic trends and provide a reference for making proper macroeconomic policies, speeding up the transformation of economic development and realizing the stable and healthy development of China's economy. The conference includes a main forum and three sub-forums.
Insurance system to be based on bankruptcy model
China's deposit insurance system, which has not yet been established but has been discussed for years, will be based on the model the central bank used when solving the bankruptcy of a Shenzhen-based securities company in 2004, Shanghai Securities News reported on Thursday, quoting An Qilei, deputy head of the central bank's financial stability bureau. The model means the official bailout for troubled lenders and their deposits will be based on the principle of "no interest rates, discounted principal, and limited purchases," An said.
Military manufacturer sees profits surge 18.7 percent
China North Industries Group Corp, the country's largest defense equipment manufacturer, has reported an 18.7 percent jump in annual profits, despite the slowing global economy. Profits hit 10.27 billion yuan ($1.63 billion) in 2012, up from 8.65 billion yuan in 2011, General Manager Zhang Guoqing told its annual work meeting. Revenues stood at 351 billion yuan, up 14.5 percent from one year earlier. Zhang attributed the profit growth to the company's continuous technical innovation and lean management.
650 billion yuan earmarked for investment in railways
The government plans to invest 650 billion yuan ($103.56 billion) on railway construction in 2012, a slight rise from last year's 630.98 billion yuan. New railways with a combined length of 5,200 km will be put into operation, said Minister of Railways Sheng Guangzu. In 2010, the country spent a record 842.65 billion yuan on its railway network.
Power consumption growth to accelerate in 2013
China's electricity regulator expects the country's power consumption to accelerate in 2013. The State Electricity Regulatory Commission said the country's consumption will increase 9 percent this year, after seeing monthly increases in power use since October. In line with a sluggish economic expansion, electric energy consumption use slowed for two straight quarters before rebounding to 7.45 percent in the last quarter, commission data showed. In 2012, residential power consumption outpaced overall growth, showing a 10.7 percent year-on-year increase, while electricity use growth in light and heavy industries dropped markedly, SERC said.
Tobacco firms increase payments to government
China's tobacco industry paid 864.9 billion yuan ($137.7 billion) in taxes last year, a 15.7 percent increase on the previous year. Companies also handed over 716.6 billion yuan in profits to the government, a 19-percent rise from a year earlier, according to Jiang Chengkang, head of the State Tobacco Monopoly Administration. Jiang also revealed the industry is turning greener. Energy consumption per 10,000 yuan of value-added output fell 14.8 percent year on year to 25.3 kg of standard coal in 2012.
Securities brokers experience profits slide
The total net profits of China's securities brokers fell 16.4 percent in 2012, partly due to the country's lackluster stock market, Xinhua news reported. According to the unaudited financial reports of 116 firms, the total net profits stood at 32.93 billion yuan ($5.25 billion) last year, the Securities Association of China said in a statement posted on its website. Ninety-nine of the companies made profits, accounting for 86.84 percent of the total, the statement said. Total revenue dropped 4.77 percent from a year earlier to 129.47 billion yuan, it added.
Citic Trust fails to get payment for trust product
Citic Trust Co, a unit of China's biggest State-owned investment company, said a steel company didn't make loan payments that would have been used to pay investors in one of its trust products. Yichang Three Gorges Quantong Coated and Galvanized Plate Co failed to pay 119 million yuan ($19.1 million) in principal and interest that were due Monday to a trust-product account, Citic Trust said in a statement. The steel company last month made a 74.6 million yuan payment a day after the Dec 20 deadline. Yichang, which has suffered from declining steel prices, raised 1.33 billion yuan in January through a trust product sold by Citic Trust and used the money to buy raw materials.
Copper smelters in China, Japan secure 10% fee rise
Jiangxi Copper Co, China's biggest copper smelter, and Japan's Pan Pacific Copper Co said mining companies will pay them at least 10 percent more in fees to process the metal in 2013, the third straight year the fees have risen. Pan Qifang, secretary of the board for the Guixi, Jiangxi province-based smelter, said on Thursday that Jiangxi Copper settled fees with Freeport-McMoRan Copper & Gold Inc and another miner at $70 a metric ton and 7 cents per pound. Pan Pacific agreed with several miners to increase the charges by 10 percent, said Shigeru Oi, senior executive officer for raw materials.
Cash-strapped Erdenes TT halts coal exports to China
Erdenes Tavan Tolgoi LLC, Mongolia's largest state-owned coal company, halted deliveries to China after failing to pay a company that provides logistical support, its CEO said. Exports to customers, including Aluminum Corp of China Ltd, stopped on Jan 11 as Erdenes TT couldn't pay Altangovi, said Yaichil Batsuuri, who has led the company since October. Altangovi provides warehousing services at the border with China, the biggest buyer of Mongolia's steelmaking coal. The halt comes as Erdenes TT seeks a government loan for as much as $500 million to repay debts and fund infrastructure construction.
Insurance brokerage to protect firms overseas
An international insurance brokerage association was established in Beijing on Thursday, with an aim of protecting Chinese enterprises, as they expand globally. Jiang Tai International Associates was started by Jiang Tai Insurance Brokers Limited, China's first insurance brokerage firm. Thirty-seven international brokerage firms have signed cooperation deals with Jiang Tai to become member associates. The aim of the new association is to bring together some or all of the insurable risks faced by companies and its subsidiaries around the world into one insurance program.
Trade surplus acceptable, Commerce Ministry says
China's trade surplus of $231.1 billion in 2012, which saw a year-on-year jump of 48.1 percent despite the increase in imports, was due to commodity price declines. Shen Danyang, spokesman for the Ministry of Commerce, made the remarks at a news briefing on Wednesday. The trade surplus accounted for about 2.8 percent of China's GDP in 2012, which falls within international standards, Shen added. The ministry will take measures to balance foreign trade in 2013, including issuing specific fiscal and financial measures to widen imports and organizing import exhibitions, Shen said.
Thailand's exports to China to grow 13 percent in 2013
Thailand China Economic Information said in a recent report that Thailand's exports to China will grow at least 13 percent year-on-year in 2013 and surpass $30 billion, compared with the $27 billion estimated for 2012. Due to a recovery in the global economy and stimulus measures by the Chinese government, the last months of 2012 saw China regain growth momentum. China's improvement in economic growth will directly benefit Thailand's exports as China is the country's biggest export market, the report said. Computer equipment and parts, rubber, machinery, home appliances and cassava are promising exports to China in 2013, the report said.
(China Daily 01/18/2013 page14)