What's news

Technology

Alibaba taps into language learning

The Chinese online shopping business Alibaba says it has invested in TutorGroup, an online education platform and said to be the largest English-language learning institution in the world.

Alibaba, Singapore investment company Temasek and Qiming Venture Partners have invested nearly $100 million (73 million euros) in TutorGroup, Alibaba said.

Alibaba did not reveal details of its investment or stake in TutorGroup.

TutorGroup said it plans to use the funding to speed up its growth across Asia, and to expand its presence in the Americas.

Tencent expected to invest in Dianping

Tencent Holdings Ltd, China's Internet giant, is to invest in Dianping, the country's leading local life information and trading platform, by buying a stake of between 20 percent and 25 percent. China Business News said Tencent will invest between $400 million (291 million euros) and $500 million in Dianping of Shanghai, which is the most recognized online third-party brand in ratings and reviews in China.

Tencent's teaming up with Dianping is seen as another big move to push into online-to-offline business. All of China's three Internet giants, Baidu Inc, Alibaba Group Holding Ltd and Tencent Holdings Ltd, have been expanding to offer more offline services by teaming up with smaller Internet companies.

Economy

Flow of FDI to China rises sharply

Foreign direct investment into the Chinese mainland rose 16.1 percent year-on-year in January to reach $10.76 billion, the Ministry of Commerce says.

The growth marked a surge from the 3.3-percent rise in December.

FDI in the country's services sector gained 57 percent in January to reach $6.33 billion, or 58.8 percent of the total, the ministry said.

In contrast, manufacturing sector inflows fell 21.7 percent to $3.47 billion.

FDI from 10 major Asian economies rose 22.2 percent to $9.55 billion, including a 37.7 percent rise from Hong Kong, and a 197.9 percent rise from the Republic of Korea.

Cross-border yuan payment at FTZ

The China (Shanghai) Free Trade Pilot Zone launched cross-border yuan payment services on Feb 18 under the guidance of the People's Bank of China, marking a milestone in the expansion of the international use of the yuan, said analysts.

Five third-party payment service providers have received approval to handle renminbi-denominated cross-border payments in the zone, the central bank's Shanghai head office said.

To carry out cross-border yuan payments, each of the five payment service providers will open a cross-border renminbi account at one of the Shanghai branches of five commercial banks. They are Industrial and Commercial Bank of China Ltd, Bank of China Ltd, China Construction Bank Corp, China Merchants Bank Co Ltd and China Minsheng Banking Corp Ltd.

Industry

Machinery companies set up joint venture

In the most recent move to explore the Chinese market, Metso Group, a global provider of mining and construction technology and services, has set up a joint venture with Guangxi LiuGong Group Co Ltd (LiuGong) of China, Metso says.

The 50-50 joint venture, named Liugong Metso Construction Equipment (Shanghai) Co Ltd (LiuGong-Metso), will combine Metso's know-how in the track-mounted crushing and screening business and technology with LiuGong's extensive distribution resources.

Metso says the design and manufacture of localized versions of Metso's Lokotrack mobile crushers and screens will be launched during the first half of this year. In future, the joint venture will also promote Metso's global track-mounted crushing and screening equipment in China.

Finance

State-owned Yuexiu buys Hong Kong bank

Yuexiu Group, a state-owned enterprise in Guangzhou, has announced that that it has completed buying Hong Kong's Chong Hing Bank for HK$11.64 billion ($1.5 billion; 1.09 billion euros).

Yuexiu Group bought 326.25 million CHB shares, accounting for 75 percent of its total stake.

"It is the first time in 27 years that a non-financial institution has bought a Hong Kong Bank," said Leung Ko May Yee Margaret, CHB deputy chairman and managing director. Guangzhou is building itself as a regional financial center and Hong Kong is to become an offshore business center for the renminbi, she said.

Suning given approval for insurance brokerage

Chinese retailer Suning will wade into the insurance brokerage service after being given the go-ahead from China's top insurance regulator, the company says.

In a circular posted on its website, the China Insurance Regulatory Commission said it has allowed Suning to set up a company to sell insurance products on the Chinese mainland.

The company, with registered capital of 120 million yuan ($19.8 million; 14.4 million euros), will be jointly founded by Suning and its brick-and-mortar retail chain, Suning Appliance, each holding a stake of 75 and 25 percent respectively.

In addition to selling insurance, the newly founded insurance company will also be allowed to collect insurance premiums as well as validate and settle claims.

Resources

Chinese gold dealer to buy US oil operator

Goldleaf Jewelry Co, a Chinese jeweler with gold mining investments, plans to acquire US oil and gas operator ERG Resources for at least $665 million (485 million euros), the company said in a statement to the Shenzhen stock exchange on Feb 17.

Goldleaf Jewelry will raise 5.7 billion yuan ($940 million) at most through a private share placement to fund the purchase and supplement liquidity, the statement said.

It will hold 95 percent of ERG Resources after the purchase.

Aviation

1.65-billion-yuan boost for aircraft base

China George Heintz Aircraft Manufacturing Co will invest 1.65 billion yuan ($273 million; 199 million euros) in a light aircraft base in Faku, a county in Shenyang, Liaoning province.

The local government said it will be the first super short takeoff and landing light aircraft manufacturing base in northeastern China.

The project is due to produce 500 small aircraft a year, valued at 2 billion yuan. A general aviation club will be set up at the base, offering pilots training programs.

Work on Faku's general aviation industrial base, covering 25 square km, began in 2010. It will focus on aircraft research and development, aircraft and parts manufacturing, aircraft assembly and pilot training.

Retail

McDonald's beckons more franchisees

McDonald's Corp's decision to allow investors with 2 million yuan ($330,000; 240,000 euros) and nine months' training to operate an existing restaurant through franchising could fuel its growth in China, despite the risks of high rents and competition.

The fast-food chain granted new franchises in Shanghai and Shenzhen in December. Its website also said the company is holding seminars for such traditional licensing in those cities.

McDonald's first allowed traditional franchising, in which the licensee leases the restaurant from the corporation, in Jiangsu, Fujian, Sichuan and part of Guangdong provinces in 2010.

China Daily - Agencies

(China Daily Africa Weekly 02/21/2014 page18)