What's news

Technology

Intel to open development center

Intel Corp is building its first global development center for smart devices in Shenzhen, the world's largest consumer electronics manufacturing hub, as its chief executive looks for profit growth from mobile devices in a post-personal computer era.

The US chipmaker is also starting a $100 million (72.7 million euros) fund in China to encourage startups in the mobile sector, CEO Brian Krzanich, appointed to the post in May 2013, said on April 2. Intel is targeting 40 million tablet chip shipments in 2014 compared with 10 million last year.

"We have missed the tablet, but we will grab future trends, including wearable devices and the Internet of Things," Krzanich said.

The Shenzhen innovation center, primarily working on tablets, PCs and smartphones employs 300 people and will "grow with the ecosystems", Anthony Neal-Graves, head of Intel's research and development team in China, said. Intel isn't disclosing the scale of investment in the new facility, he said.

Industry

China to remain container manufacturing hub

Although the growth rate of global shipping container manufacturing has slowed to single digits, China will remain the largest container manufacturing country, a leading container producer said on April 2. China contributed to more than 96 percent of the global shipping container supply in 2013, with almost all of it fully made in China, Huang Tianhua, assistant president of China International Marine Containers (Group) Ltd, said at a press briefing on April 2.

Retail

JD.com to merge e-commerce business

A detailed plan by JD.com Inc, China's second-largest online retailer by market share, to merge with the e-commerce business of Tencent Holdings Ltd after the two Internet firms set up a strategic partnership in early March was leaked on April 2. Under the agreement the pair inked earlier, the Shenzhen-based Internet giant Tencent will take a 15 percent stake in Beijing-based JD.com, and JD will acquire the less popular online shopping platforms wanggou.com, paipai.com and yixun.com from Tencent.

Auto

Electric-cars buyers to get new incentives

The government may exempt electric-car buyers from purchase taxes under new incentives. Previous measures failed to spur demand, Vice-Premier Ma Kai said. The government may cut or waive the 10 percent auto-purchase tax for new-energy vehicles and slow the reduction of government subsidies beyond 2015, according to comments from Ma posted on the Chinaev.org website.

Banking

Central bank in a monetary dilemma

China's fast expanding credit and the rapidly cooling economy have put the central bank in a dilemma over whether to ease its monetary stance to boost growth.

The government has shown great determination this year to control credit risks while allowing defaults in the bond market. Both industrial investment and fixed-asset investment slowed to multi-year lows in the first two months and dragged down economic growth.

Policymakers are unsure about how to balance policy to avoid a hard landing while curbing potential debt risk.

"They may undertake gentle policy fine-tuning like in 2013, instead of a 2009-style stimulus package, so growth will be slower but hopefully the worst can be avoided," said Yao Wei, chief economist in China at French bank Societe Generale SA.

Finance

Internet finance shaking up Chinese banks

Chinese banks' resilience to the growing popularity of Internet finance has been "so far, so good" and sector change will come as the industry catches the trend, analysts in Hong Kong said.

By the end of March, at least 11 banks had posted annual results. They show continued net-profit growth, 13.9 percent on average in 2013, three percentage points lower than the year before. That's in the limelight of Internet finance.

"Because of rising funding costs, the banking sector saw slower profit growth this year. Margins are narrowing," said Grace Wu, Hong Kong-based analyst of Daiwa Securities Group Inc. "The pressure isn't severe. Chinese banks still enjoy a loan price advantage. We maintain a stable outlook on sector margins this year."

Economy

Corporate debt market on growth trend

China's bond market is projected to more than double within five years and account for 70 percent of the Asian bond market, a Boston Consulting Group report said.

The report predicts that by 2018, Asia's bond market will grow to 2.32 times its current size, or $16 trillion, and that China's onshore market will exceed Japan's to become the largest in the region.

According to Shanghai Clearing House, the amount of total bonds outstanding by the end of 2013 was 14.1 percent higher than that of the previous year, reaching 29.9 trillion yuan ($4.82 trillion).

Trade

South African to hold series of expos in China

South Africa will commemorate its 20th anniversary of freedom and democracy and the Year of South Africa in China this year, with a series of events that will showcase the rich cultural diversity of the African nation, Esrom Thabo Thage, the South African consul-general in Shanghai said.

Prominent among the events is the food, wine, culture, fashion, arts and crafts and music expos from South Africa that will be held at the Westin Hotel in Shanghai this month.

According to the consul-general, fairs and exhibitions involving South African chefs, fashion designers and performers would also be held during the year. Other highlights include a lecture on Nelson Mandela, investment seminars, food and wine tasting events and gala dinners.

Rise in Japan sales tax may hit China exporters

Japan raised its sales tax on April 2, a move likely to depress Chinese export prices to Japan while bilateral trade remains full of uncertainties amid political tensions, experts said.

"It will have a great impact on the Japanese economy. An economic recession with sluggish demand in Japan will drive down demand for Chinese products," said Zhang Jifeng, assistant to the director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences.

"Japanese businessmen will probably take the opportunity to cut prices when bargaining with Chinese exporters. Chinese export businesses have to enhance quality to enlarge profit margins."

Resources

Hubei starts trading of carbon emissions permits

Hubei province began trading permits on the nation's second-largest emission exchange at some of the country's lowest prices. The province sold 510,000 metric tons of carbon allowances at 21 yuan ($3.40) each on the first day of trading on the China Hubei Emission Exchange, according to an e-mailed statement on April 3. At least 22 companies participated in 19 trades, it said.

China Daily - Agencies

(China Daily Africa Weekly 04/04/2014 page18)