What's news

Internet

Alipay, Rakuten join hands

Alipay, the electronic payment tool of Alibaba Group Holding Ltd, aims to get more online shoppers to adopt its payment service by teaming up with Japanese e-commerce company Rakuten Inc.

Rakuten Global Market, the vendor's international shopping service unit, recently started accepting Alipay as one of its payment options, allowing Chinese consumers to purchase goods in the cross-border marketplace and pay with Chinese currency.

The tie-up is Alipay's latest step as it moves beyond domestic shopping sites and handles transactions for international virtual vendors.

Economy

Manufacturing remains weak in China

Factory activity in China weakened for a fourth straight month in April, although the rate of decline eased, HSBC Holdings Plc said on April 23 as it released its monthly Purchasing Managers' Index.

The preliminary reading was 48.3, compared with 48.0 in March. A reading below 50 indicates a contraction.

"The PMI reading in April shows growth stabilizing at a low level," the bank said.

Domestic demand improved slightly, as suggested by an increase in new orders. The sub-index reading rose to 47.7 in April from 46.5 in March. Output rebounded to 48.0 from 47.2.

Auto

Toyota ready for rivals

Japanese automaker Toyota Motor Corp may significantly expand production capacity in China as it seeks to catch up with rivals in the world's largest auto market, a senior executive said on April 21. Toyota, the world's largest car producer, is aiming to double sales in China to 2 million vehicles, a figure its China chief Hiroji Onishi said was the "minimum" necessary to keep up with market leaders Volkswagen AG and General Motors Co.

Lincoln looks to the future

Ford Motor Co's premium brand Lincoln may be late to China's luxury boom, but its top executives said the upscale car market still has plenty of room left for growth to make its debut later this year worthwhile. John Lawler, head of Ford's China operations, said that the company plans to open eight Lincoln retail outlets in seven cities including Beijing and Shanghai starting in October.

Finance

Bourses find common ground

The Shanghai Stock Exchange and its counterpart in Taiwan will sign a memorandum of understanding soon to strengthen cooperation. The Taiwan Stock Exchange has indicated that it welcomes companies from the Chinese mainland to go public in Taiwan, the report said. It also quoted a capital industry expert as saying that the agreement has been in the works for over a year.

Yuan dips to one-month low

The yuan dropped to a one-month low amid speculation that the central bank had intervened to weaken the currency after data indicated a rise in capital inflows. The People's Bank of China reduced its reference rate by 0.01 percent to 6.1591 per dollar on April 21, the lowest since Sept 11. Yuan positions at Chinese financial institutions accumulated from foreign-exchange sales, a gauge of inflows, rose to 189.2 billion yuan ($30.4 billion) in March, according to central bank data.

Crackdown on illegal fundraising

China has strengthened efforts to check illegal fundraising in sectors such as peer-to-peer lending and crowd funding, Liu Zhangjun, an official at the China Banking Regulatory Commission, said.

"With the rapid development of Internet finance, illegal fundraising is moving from offline to online," said Liu, director-general of a task force established to tackle the problem.

"Many illegal investment and financing advertisements are spreading quickly and widely via online channels including websites, Internet forums, micro blogs and e-mail."

A regulatory vacuum has blurred legal boundaries for Internet financing and some people are exploiting that to raise funds illegally, he said.

Conditional nod for local bonds

The central government may allow local governments to sell municipal bonds within narrow parameters to regulate borrowing and reduce systemic risks.

Provincial-level governments that win approval from the State Council will be able to raise some of the funds needed for construction projects through bonds, if a draft amendment to the Budget Law is approved by the top legislature.

The draft amendment, which was submitted on April 21 to the National People's Congress Standing Committee, sets strict conditions for such debt issues.

Property

Greenland turns to Malaysia

State-owned property developer Greenland Group is in talks with Iskandar Waterfront Holdings of Malaysia to buy three land parcels in Malaysia's southern state of Johor. The Shanghai-based company paid 600 million ringgit ($184.67 million) for its maiden purchase, a 5.63-hectare plot of land in Johor, despite a looming slowdown in the Malaysian property market after regulatory curbs to rein in surging home prices.

IPO

Film firm readies listing plans

State-owned Shanghai Film Group Co Ltd has filed the preliminary prospectus for its proposed initial public offering with the China Securities Regulatory Commission. The move will make it the first state-owned listed company ahead of China Film Co, which is also readying for an IPO.

Shanghai Film Group plans to issue 93.5 million shares, accounting for 25.03 percent of its general capital, according to the prospectus. The proceeds will be used to invest in new movie theaters and to modernize older facilities.

Investment

Private investment shows robust growth

The total value of private Chinese invested capital reached 9.41 trillion yuan ($1.52 trillion) last year, an annual growth rate of 13.3 percent, a wealth management survey found.

The increase was primarily driven by deposits and cash as well as the increase in property value, according to the Chinese Mass Affluent Report 2014, published by Forbes China and CreditEase, a Beijing based wealth-management firm.

This is the second such report released by the two companies and focuses on Chinese middle-class wealth. The affluent were defined by personal investment capital, which ranged from 0.6 million yuan to 6 million yuan. The funds include cash, equities, funds, bonds, insurance and other financing products and property for investment.

Trade

Marginal pickup in orders at fair

The number of buyers at China's largest international trade fair grew marginally, while demand from developed economies remained subdued. The first phase of the 115th China Import and Export Fair held from April 15 to 19, attracted 101,198 foreign buyers, up 10 percent from the previous session during last fall. But the figure failed to match last year's spring session, mainly due to the slump among European merchants, who traditionally constitute a large percentage of buyers.

China Daily-Agencies

(China Daily Africa Weekly 04/25/2014 page20)