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Growth in service outsourcing

The growth of China's service outsourcing industry quickened in the first 11months on strong overseas demand, latest data from the Ministry of Commerce showed. Chinese businesses inked service outsourcing contracts worth 836.09 billion yuan ($120.3 billion) during the January-November period, up 17.5 percent year-on-year. The growth was faster than the 9.5 percent rise seen in the first 10 months. Among the deals were offshore service outsourcing contracts valued at 552.7 billion yuan, rising 17.1 percent year on year. Service outsourcing contracts from the United States and European Union went up 8 percent and 23.1 percent, respectively.

Insurance premium income up 28.9%

China's insurance premium income continued steady growth, with a 28.9-percent year-on-year rise in the first 11months of 2016, according to the country's top insurance regulator. Premium income reached 2.9 trillion yuan ($416 billion) during the January-November period, according to the China Insurance Regulatory Commission. Growth slightly retreated from the 30.4 percent rise in the first 10 months. Premium income of life insurance companies climbed 33.1 percent to hit 1.66 trillion yuan. Property insurance companies' premium income rose 8.7 percent to 777 billion yuan.

Laos to boost rice exports next year

Laos plans to step up rice exports to China next year after the quality of rice sold to the country so far was found to be satisfactory by Chinese buyers, the state-run press Vientiane Times reported. Laos began selling rice to China in 2015. It is expected that exports of about 4,200metric tons of sticky rice and purple rice in 2016 will rise to over 8,000 tons in 2017, as demand from Chinese markets increases, according to the agriculture department.

Finance ministry to adjust tariffs

China's Ministry of Finance will adjust tariffs on a number of exports and imports. The new plan comes into force on Jan 1, according to the ministry. To meet domestic demand, tax rates will be lowered on some imported commodities next year including hydraulic actuators for aircraft. Import tariffs will also be reduced on commodities including tuna and arctic shrimp.

Companies & Markets

Sany sets up commercial bank

Sany Group, the parent company of heavy machinery manufacturer Sany Heavy Industry Co Ltd, on Monday led a group of 10 private companies in setting up a commercial bank. The Sanxiang Bank, based in Hunan province, will operate with a registered capital of 3 billion yuan ($435 million). It is China's eighth private commercial bank since the regulator allowed private capital into the banking sector in 2013. The Sanxiang Bank will focus on Chinese manufacturers, especially those investing heavily in technology. Bank President Liang Zaizhong said that while operating with much less capital than State banks, it is China's first bank associated with a major manufacturer.

SMEs debut on New Third Board

A total of 124 small and medium-sized enterprises were added to China's New Third Board from Dec 19 to 23, bringing the number of listed companies on the board to 10,105 as of Friday. Turnover on the board reached 6.77 billion yuan ($974 million) in the past week, according to Royal-Flush Information, a financial information service provider. The New Third Board, or National Equities Exchange and Quotation system, is a national system for SMEs to transfer shares and raise funds.

BMW to recall 193,611 vehicles

BMW will recall 193,611 vehicles in the Chinese mainland due to defective air bags, the country's quality watchdog said. The recall, set to begin on Aug. 1, 2017, affects 168,861 imported cars made between Dec 9, 2005 and Dec 23, 2011, as well as 24,750 sedans manufactured between July 12, 2005 and Dec 31, 2011, according to the website of the General Administration of Quality Supervision, Inspection and Quarantine.

China hits GM with $29m antitrust fine

China slapped a$29 million fine on General Motors Co for antitrust violations, a sign of the growing tensions between the US and the Asian nation. The biggest US automaker is accused of setting minimum prices on some models in its SAIC General Motors joint venture. The Shanghai Municipal Development & Reform Commission, which imposed the 201million yuan fine, alleged in a statement that GM punished dealers who sold cars for less than the prices set by the Detroit-based automaker. This is the first time China has fined GM, the second-biggest foreign carmaker in China by sales.

Galaxy Securities plans Shanghai IPO

China Galaxy Securities plans to sell as many as 600 million A shares in its Shanghai IPO, according to a regulatory filing. It plans to use the proceeds raised to expand businesses including short selling, wealth management and investment banking. Shares to be issued won't exceed 5.92 percent of the company's total equity. The share subscription is scheduled for Jan 11.

Dongfeng-Nissan sales rise in 2016

Carmaker Dongfeng-Nissan's sales have risen in 2016, the company said on Monday. The company's auto sales this year stood at 1.1million, up 13 percent year-on-year, the second year that auto sales have topped one million, according to Zhou Xianpeng, deputy general manager of Dong-feng-Nissan. From January to November, China's car production volume and sales both reached about 25 million, each growing more than 14 percent year-on-year, according to the China Association of Automobile Manufacturers.

Around The World

Fitch cuts Belgium credit rating to AA-

Fitch Ratings cut Belgium's credit rating for the first time in almost five years, as the government struggled to reach its goal of returning to a balanced budget. In a statement on Friday, Fitch announced a one-step reduction to AA-from AA. That's equivalent to Belgium's credit score of Aa3 at Moody's and one step below the AA rating assigned by Standard & Poor's. The outlook on the rating is stable, Fitch said.

Banks settle US toxic debt probes

Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve US investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds. Deutsche Bank will pay $7.2 billion and take a $1.2 billion pretax charge this quarter, while Credit Suisse agreed to a $5.3 billion deal and will recognize a $2 billion hit to earnings, the banks said in separate statements. Their announcements on Friday came hours after Barclays Plc, which is being probed in a related case, was sued for fraud by the US Justice Department after it balked at paying the amount the government sought in negotiations.

Fairfax seeks $1b for Africa fund

Fairfax Financial Holdings Ltd, the Canadian insurer, said it is selling shares in an initial public offering for a fund that will make investments in Africa. The company is seeking to raise as much as $1 billion from the sale, sources said. Fairfax, run by value investor Prem Watsa, is hunting for countries on the continent with fast-paced economic growth, according to a prospectus filed on Friday. The Toronto-based firm has $416 million already committed from its own funds and partners including Ontario Municipal Employees Retirement System and CI Investments Inc. for the venture, called Fairfax Africa Holdings Corp. A$1 billion IPO would be the largest in Canada since Hydro One Ltd. raised C$1.8 billion ($1.33 billion) last year.

(China Daily 12/27/2016 page14)