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Finance

PBOC boss sheds light on yuan exchange rate

Zhou Xiaochuan, head of the People's Bank of China, shed new light on the central bank's policies on interest rate liberalization and the yuan's exchange rate in the latest Bo'ao Forum for Asia.

On April 11, Zhou pledged the PBOC will gradually exit from its present regular interference with the exchange rates to make way for market forces to determine the yuan's price.

The change is another reform that will see two-way fluctuations in the currency's exchange rate, although they will not necessarily reflect the central bank's monetary policy.

Cross-border use of the yuan has moved forward rapidly since the financial crisis of 2008, when preparations for the development were minimal, the senior central bank official said.

Deutsche economist to join central bank

Deutsche Bank AG economist Ma Jun said he will join the People's Bank of China (PBOC) to become involved in economic changes that he expects will be "very aggressive". Ma will be chief economist with the central bank's research bureau, ending a 13-year stint with Deutsche Bank, according to a message he sent to clients this week and an internal Deutsche memo, both obtained by Bloomberg News.

CITIC Securities buys stake in US brokerage

CITIC Securities Co, China's largest securities company by market value, has acquired stakes in US brokerage BTIG LLC in its latest step to expand its overseas business via the acquisition of Western firms. The scale of the acquisition and other details have not yet been revealed, Bloomberg reported on April 14, while quoting BTIG co-founder Steve Starker as saying the funds raised via the transfer would be used to strengthen the company's research capability and banking businesses.

Yuan-denominated iron ore swaps set to go

The Shanghai Clearing House said it may introduce yuan-denominated iron ore swaps as early as next month as China seeks greater influence in pricing the steel ingredient. The state-owned exchange, which mainly services the interbank currency and debt markets, started a trial of the swaps on March 19 and could begin full trading "around late May or early June", said Yao Ling, an official from the bourse's business innovation department.

Probe starts into bond proceeds

China is investigating some companies' use of bond proceeds, sources said, as concerns mount that defaults may increase in the nation's $4.2 trillion onshore debt market. The National Development and Reform Commission, the nation's top planning agency, began conducting a nationwide special nspection of corporate bonds under its supervision in March, two people with direct knowledge of the matter said on April 9.  

Auto

Tesla in search of deal with Sinopec

Executives from United States electric carmaker Tesla Motor Inc will visit Sinopec Group next week to discuss potential cooperation to establish vehicle-charging facilities, an insider with the Chinese company told China Daily on April 15.

Talks will center on building charging units around Sinopec's nationwide service-station network.

Tesla denied plans for a meeting in Beijing, The Wall Street Journal reported on April 15, citing Simon Sproule, vice-president for marketing and communications. Tesla plans its first customer deliveries in Beijing or Shanghai next week, he said.

China automobile exports fall 7.8%

China exported 209,000 motor vehicles in the first quarter of the year, a drop of 7.8 percent year-on-year, according to the latest statistics released by the China Association of Automobile Manufacturers. Passenger vehicle exports in the first three months totaled 126,000 units, down 10.4 percent year-on-year, according to the association. In March, auto exports reached 85,500 units, down 0.6 percent year-on-year and up 59.2 percent month-on-month.

Transport

Rail operator ups number of new lines

China's national railway operator will raise its annual investment by 20 billion yuan ($3.23 billion) to 720 billion yuan in 2014 to increase the number of lines it plans to build, the head of the company said on Wednesday. Sheng Guangzu, general manager of China Railway Corp, told the People's Daily that the company is looking at starting construction of 48 railway projects this year, up from 44 projects in its previous plan.

CSR unit to supply green buses to Brazil

CSR Zhuzhou Electric Locomotive Co, a subsidiary of CSR Corp Ltd, said it has beaten foreign rivals - including Mercedes-Benz, Volvo and Brazilian brands Marcopolo and NEOBUS - to supply new-energy buses in Curitiba, Brazil. The successful bid will help the company establish a good reputation in South America and marks an important step in the global expansion of China's new-energy automobile industry, the company said.

Resources

Demand for gold 'to rise 25% in next four years'

Gold demand in China, which overtook India as the largest user last year, will rise about 25 percent in the next four years as people are becoming richer, according to the World Gold Council. Consumer demand will expand to at least 1,350 metric tons by 2017, the London-based council said in a report. Growth may be limited this year after 2013's price decline spurred people to buy more last year, it said.

Energy

Govt to ban imports of low-quality coal

China plans to ban imports of coal with high proportions of ash or sulfur as the nation seeks to limit the dirtiest fuels to fight pollution. The world's largest coal user will encourage imports of higher-quality supplies, according to Ren Lixin, the head of the coal division at the National Energy Administration. Domestic demand for the fuel may rise "slightly" this year, and imports are expected to be similar to 2013 levels, he said on April 10.

Oil prices drop on weak China data

Oil prices retreated on April 10 on unexpected decline in China's exports and speculation that oil supply from Libya might increase.

China's exports slumped 6.6 percent to $170.11 billion in March, customs data showed on April 10, raising concerns over the strength of the country's economy.

Imports were down 11.3 percent to $162.41 billion and total foreign trade volume declined 9 percent to $332.52 billion, the General Administration of Customs said.

Policy

Plan for better capital support for SMEs

China will provide better support for small and medium-sized enterprises by simplifying how funds are allocated, the Ministry of Finance said on April 14.

The ministry, along with the ministries of industry and information technology, science and technology, and commerce, issued a notice to improve the efficiency of funding to SMEs.

According to the notice, funds will be allocated to SMEs to help improve technological innovation, financing, services, and international cooperation.

The notice also highlighted more support for SME innovation in information technology, resource saving, new energy development, biomedical industry and modern agriculture.

China Daily-Agencies

(China Daily Africa Weekly 04/18/2014 page18)