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Auto

Foton launches van in African market

Chinese automaker Beiqi Foton on July 12 launched its van in Kenya.

Foton's general manager, Wang Jinyu, told journalists in Nairobi that Kenya is an emerging market for commercial vehicles on the African continent.

"We hope to provide transport solutions for growing urban centers in Kenya and the entire Africa region," he said, adding that Chinese firms are impressed by the favorable investment climate in Kenya.

Foton has invested more than $30 million in an assembly plant in Kenya and has four branches in Kenya and one in Uganda.

Technology

Chinese firm seals Zambia digital deal

A Chinese firm has signed a contract worth $9.5 million for Zambia's national digital broadcasting system, the Zambia Daily Mail reported.

China's Star Software Technologies will conduct the first phase of the program that will allow the southern African nation to migrate from analog television broadcasting to a digital system.

Zambia is on course and on schedule for the migration, according to Bert Mushala, Zambian permanent secretary in the Ministry of Information and Broadcasting Services.

Mushala said the government has no doubt that the Chinese firm will deliver as per contract and appealed to everyone with a stake to support the process.

Foxconn to boost use of robots

Foxconn Technology Group plans to use more robots for its various manufacturing operations as part of its efforts to replace "dangerous, boring and repeated" work, which has often been blamed for a series of suicides at its various facilities in recent years.

The company will shift from mass production to lean production in the future and consider manufacturing on an order-on-order basis by upgrading its production lines and using more robots, Chairman Terry Gou said on July 11.

Aviation

COMAC gets orders at major air show

Commercial Aircraft Corporation of China Ltd said on July 14 that it had received six orders for the ARJ21, the China-made regional passenger airliner, at the Farnborough International Airshow in the United Kingdom.

The new orders, from three clients, boost the total orders for the ARJ21 to 258. The aircraft is expected to get airworthiness certification from the authorities by the end of the year, said company officials.

Yanshang Corp, a Shanghai-based company involved in finance, real estate, international trade, automobiles and law, signed an agreement to purchase an ARJ21 and is expected to be the first launch customer for the business jet. Nanshan Group, based in Shandong province, also signed a purchase agreement for two of the jets.

Air passengers increase over 10%

The number of air passengers in China rose 10.7 percent in the first six months of the year, the country's aviation regulator said, as it urged carriers to expand into less-developed regions. The Civil Aviation Administration of China said in a statement posted on its website that 186 million trips were made in and out of Chinese airports during 2014's first half. Passenger volume grew at a slightly slower pace than the 11 percent increase seen in the first six months of 2013.

Okay Airlines inks deal with Boeing

Boeing Co announced six 737 Max and four 737-800 aircraft orders valued at $980 million based on the listing price from Okay Airlines, a privately owned carrier in China, on July 14 at the Farnborough International Airshow in the United Kingdom.

Air China predicts profits to drop

Air China Ltd, the country's biggest airline by market value, warned of a drop in first-half profit as the yuan weakened. The carrier, based in Beijing, expects to post a profit decline of 55 percent to 65 percent in the six months ended June from the 1.14 billion yuan ($184 million) reported in the year-earlier period, according to a July 14 statement to the Shanghai Stock Exchange.

Trade

Tax policy ends on some imported steel

The government will cancel its tax protection policy for certain types of imported steel, according to the Ministry of Finance, General Administration of Customs and State Administration of Taxation.

From July 31, tariffs and import taxes will be imposed on 78 products the domestic market is capable of producing, such as steel wire and electrical steel. For orders signed before July 31 with goods to be shipped before year's end, trading under the policy continues.

Finance

Japan to top China as biggest US creditor

Japan is poised to pass China as America's biggest foreign creditor this year with help from the world's largest pension fund, according to Nomura Holdings Inc. The 126.6 trillion yen ($1.25 trillion) Government Pension Investment Fund will increase overseas bond holdings in coming months to earn higher yields, according to money managers, strategists and economists surveyed by Bloomberg. China's accumulation of reserves that it has used to buy Treasuries will diminish, a Beijing-based official said last month.

First investment bank seeks IPO proposals

China International Capital Corporation, the country's first investment bank, is asking competitors to pitch for roles in its initial public offering in Hong Kong, according to sources with knowledge of the matter.

The company plans to start the share sale as early as the fourth quarter, said sources who asked not to be identified because the information is private. Several investment banks have received CICC's request for proposals, they said.

Industry

Express industry delivers 54% growth

The express delivery industry delivered 5.9 billion packages in the first half of 2014, surpassing the total amount in 2012 and with year-on-year growth of 53.7 percent, according to the State Post Bureau on July 14.

Meanwhile, postal service revenues reached 150.5 billion yuan, with year-on-year growth of 22.8 percent. From January to June, its market share reached 83.4 percent and revenue accounted for 73.3 percent of the industry as a whole.

Policy

Currency controls eased on financial vehicles

The government has loosened currency controls to make it easier for domestic companies and individuals to set up special purpose financial vehicles overseas, according to revised rules published by the nation's foreign exchange regulator on July 14. The vehicles or SPVs are legal entities set up for limited or temporary goals such as to reduce risk.

Under revised rules by the State Administration of Foreign Exchange that took effect on July 4, domestic investors in SPVs are allowed to keep profits and dividends made from such entities overseas.

China Daily-Agencies

(China Daily Africa Weekly 07/18/2014 page18)