IN BRIEF (Page 18)

Food

Luxury food gifts may lose luster

Gift food product sales in China are likely to fall by 40 percent in 2013 due to the government's austerity measures, according to the China National Food Industry Association. Lower-priced products, however, may see a sales upswing during the holiday season, said a report published in Caijing.com.cn. Weng Yangyang, an official with the China National Food Industry Association, said food companies reliant on the huge profits made through luxury food product sales may face profit declines and market share erosion.

Retail

Versatility key for success of malls

Shopping malls need to become more experiential to adapt to growing pressure from online shopping, industry experts said. "Experiential consumption or one-stop shopping is the most essential strategic adjustment to meet the challenges triggered by the online shopping boom," said Chen Zhongwei of CBRE China, a real estate research company. According to Chen, department stores will take the biggest hit because the retail model is under pressure from the shopping mall boom and the increasing popularity of e-commerce.

Deals

Carlsberg buys Chongqing Beer Group

Danish brewer Carlsberg said on Dec 30 it had bought the owner of eight Chinese breweries for 1.4 billion kroner ($258 million) as it continues to grow outside the sluggish markets of western Europe. "Chongqing Beer Group has informed the Carlsberg Group that it has accepted Carlsberg's offer to acquire 100 percent of Chongqing Beer Group Assets Management," the Danish company said in a statement. The Chinese firm primarily sells brands under license from the Chongqing Brewery Co, in which Carlsberg earlier this month raised its holding to 60 percent from 29.7 percent.

Economy

SOEs likely to surpass annual targets

Most enterprises directly under the central government will achieve, or outperform, their business targets for 2013, the state-owned Assets Supervision and Administration Commission said at a performance evaluation conference of such enterprises in Beijing on Dec 29. Huang Shuhe, vice-minister of the commission, said the total profit of the enterprises in 2013 will reach about 1.3 trillion yuan ($213 billion) and the enterprises' overall annual economic added value will remain at more than 300 billion yuan.

Investment

AECOM to set up industrial park in Beijing

US-based AECOM, the world's largest planning and design company, has joined hands with Beijing Tiangong Lutian Investment Co for the Asia-Pacific Intelligent Manufacturing Industrial Park coming up in Shunyi, near Beijing. The park, spread over an area of 400 hectares, involves total investment of around 10 billion yuan ($1.61 billion), and is expected to be ready by 2015. It will be the largest focused unit for intelligent manufacturing and play a key role in the industrial upgrading of Shunyi.

Caps on investment growth suggested

Investment growth in China should be capped at around 1.4 times that of its gross domestic product to prevent excessive investment, said Cheng Siwei, a former senior legislator. During the 11 quarters from January 2011, investment growth in China has remained at a high of between 16 percent and 18 percent, Cheng said at the 13th China Economic Forum in Beijing held by the China Economic Weekly. He added that excessive investment makes GDP less reliable and weakens the influence of science and technology, staff training and corporate governance.

Finance

Registered capital rules dropped for startup firms

Business startups will no longer need to set up a corporate account for registered capital. The change is contained in an amendment to China's Corporation Law, passed by the national legislature on Dec 29. Instead of depositing a certain amount of registered capital in a corporate account that cannot be spent freely, shareholders will soon be able to determine the amount and duration of registered capital at their own discretion. But they will be held liable for the authenticity and legitimacy of their investment payments. The change will take effect on March 1.

FSI of non-financial listed companies rebounds

The financial security index of China's non-financial listed companies rebounded in the third quarter of 2013, increasing 17 percent year-on-year, according to a report by the Ministry of Commerce and China Economic Weekly on Dec 25. The report said the index in the third quarter showed China's real economy is recovering, especially in the machinery industry, retail and real estate sectors. The FSI for the third quarter of 2012 was the lowest seen in the past five years.

Internet

Nation to have 30 million 4G Internet users

Subscribers to the fourth-generation telecom network, which came into commercial use in December 2013, are likely to surpass 30 million in 2014, industry watchdogs said. More than 3,000 Chinese cities will get 4G coverage by the end of 2014, according to Miao Wei, head of the Ministry of Industry and Information Technology. China Mobile Ltd, the world's largest carrier by subscribers, plans to launch 4G services in 13 cities, including Beijing, Shanghai, Guangzhou and Shenzhen. Its coverage is set to reach more than 340 cities by the end of 2014.

Industry

Sops for high-tech industrial clusters

More than 70 emerging industrial clusters are to receive government support as China eyes technological innovation for its economic growth. The government is assessing 10 clusters that highlight high technology and innovation, according to Economic Information, a newspaper under Xinhua News Agency. Designated clusters include new energy, telecommunications and environmental protection, the report said. Each cluster will receive government subsidies of up to 100 million yuan ($16.4 million) and policy preferences, it added, citing officials from the Ministry of Science and Technology.

Technology

Policies to boost online gaming industry

The government is expected to roll out policies in the coming year to improve management of the online gaming industry, an official from China's General Administration of Press and Publications said. Sun Shoushan, deputy director of the GAPP, said at the recent 2013 China Gaming Industry Annual Conference that they are working on a new policy, which is expected to speed up the procedure for launching new games in China. According to the 2013 China Gaming Industry Report, sales in the online gaming industry jumped 38 percent year-on-year to 83.17 billion yuan ($13.7 billion) in 2013.

China Daily Agencies

(China Daily Africa Weekly 01/03/2014 page18)