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Technology

Xiaomi prepares for peak sales period

Xiaomi Corp unveiled its latest flagship smartphone on July 22 ahead of the autumn sales peak, a critical period for the Beijing-based handset vendor to meet its target of shipping 60 million units.

Analysts said that China will remain Xiaomi's major market, although founder and Chief Executive Officer Lei Jun pledged to build Xiaomi into a "well-respected global brand".

The Xiaomi 4 will help the company achieve a new sales record worldwide, according to Lei.

The company said that with the introduction of the new device, its annual revenue is on track to stand at 70 billion yuan ($11.35 billion) to 80 billion yuan this year.

Auto

Mercedes-Benz denies price-rigging charges

The nation's price regulator has expressed concerns over possible monopolistic activities by Mercedes-Benz, but the firm is not under investigation, a company executive said. Nicholas Speeks, China sales head at Daimler AG's Mercedes-Benz, said July 22 that the company will cut service charges and parts prices by 20 percent. The National Development and Reform Commission had been probing foreign automakers about inflating prices, media reports said.

Car firm makes inroads in Brazil

Chinese automaker BYD Co Ltd is making inroads into Latin America with a new plant in the city of Campinas, Brazil.

The cost of building the plant, BYD's first in the region, will be about 200 million reais ($90 million). It is slated to open in 2015.

"In the first year of operation, the plant will have a maximum production capacity of 1,000 electric buses, as well as all of their batteries," said BYD Brazil's General Manager Tyler Li.

Plans call for the vehicles to be sold in local markets or exported to other countries in the region. The Shenzhen-based automaker also plans to eventually open a research and development center in Brazil for its photovoltaic, smart-grid and LED lighting businesses.

China sales help cheer Peugeot

PSA Peugeot Citroen, Europe's second-largest carmaker, reported its first increase in first-half vehicle sales in three years, buoyed by new models in Europe and China. Deliveries advanced 5.5 percent to 1.54 million cars and light commercial vehicles from 1.46 million a year earlier, the Paris-based company said in a statement.

Finance

PBOC, Swiss bank agree to swaps

The Swiss National Bank and the People's Bank of China agreed to establish a currency swap line, bolstering access to trade finance in the Swiss franc and strengthening the international use of the yuan.

The agreement allows the two central banks to purchase and repurchase as much as 150 billion yuan ($24 billion) over the next three years, the Zurich-based central bank said on July 21.

Interest-rate swaps spur default concerns

Interest-rate swaps in China jumped the most in a year and at least four companies scrapped debt sales amid concern the nation could face the second default in its $4.4 trillion onshore bond market.

The cost of one-year swaps that exchange fixed payments for the floating seven-day repurchase rate rose 0.17 percentage point to 4.10 percent in Shanghai, according to data compiled by Bloomberg.

Agriculture

More soybean purchases in the offing

Soybean buyers in China, the world's biggest consumer, are increasing imports as demand for animal feed rose, and falling prices boosted processing margins, according to a Bloomberg News survey released on July 22. China bought about 2 million metric tons of the oilseed last week after prices declined earlier this month to the lowest in almost four years.

Development

Beijing regional integration reviewed

A plan aiming to integrate Beijing's development with two adjacent provincial-level areas is being submitted to the country's top economic planning body, the National Development and Reform Commission.

The plan includes the Beijing government's proposed collaboration with Hebei province and the municipality of Tianjin, Aastocks.com reported on July 21. The report said that Beijing and Hebei province have agreed on at least one deal involving an investment of 5 billion yuan ($805 million).

Company

State Grid to buy stake in Italian energy provider

Italian state lender Cassa Depositi e Prestiti is close to agreeing to selling a 35 percent stake in a vehicle controlling Italy's energy grids to the State Grid Corp of China, sources close to the matter said on July 21. As part of an Italian privatization drive to cut public debt, CDP is trying to sell up to 49 percent of CDP Reti - the vehicle that controls gas grid Snam, and soon, power grid Terna.

Record financing for luxury e-commerce firm

Secoo Co Ltd, a luxury goods retailer and professional services provider, completed its latest round of financing. The company raised more than $100 million in what was a record for a firm in China's luxury goods e-commerce sector, Chinese media reported on July 21.

CMC Capital Partners was the lead investor, together with IDG Capital Partners, Ventech China, Crehol China Investments and Vangoo Capital Partners among others.

Alibaba buys warehouse in Shanghai

Alibaba Group Holding Ltd has once again increased its stake in Internet commerce-related real estate with the 105 million yuan ($16.9 million) purchase of a 141,000 square meter site in Shanghai, domestic media reported on July 21. The site was bought by Alibaba's subsidiary, Alibaba (Shanghai) IOT Technology Co Ltd, in Shanghai's Jiading district and will be used for warehouses.

State firms post higher profits in half

Revenues of state-owned enterprises hit 23.31 trillion yuan ($3.76 trillion) during the first six months of the year, with year-on-year growth of 5.9 percent, according to statistics provided by the Ministry of Finance on July 17. Profits of SOEs amounted to 1.22 trillion yuan, up 8.9 percent year-on-year.

Suning sets goals for crowdsourcing

Suning Commerce Group Co Ltd, the leading home appliance retailer in China, aims to reach sales of 25 billion yuan ($4.03 billion) from its crowdsourcing business in 2015 and 45 billion yuan by 2017.

The company this month announced the launch of its crowdsourcing platform, which creates a one-stop service site for innovation and sales for consumers and developers, the company said.

To achieve the goal, Suning has focused on development of home appliances, and it hopes to extend that model to its infant and maternal products as well as other daily necessities.

Tencent joins with Easy Taxi in Singapore

IT giant Tencent and Easy Taxi, the world's biggest taxi booking app, have announced a partnership allowing WeChat users to book taxis directly via the popular messaging app, according to a press release issued by Easy Taxi in Singapore.

Early users can enjoy a S$5 ($4) waiver on taxi fares.

New users can download the WeChat app onto mobile devices, while existing users can simply follow Easy Taxi's official WeChat account to use the taxi booking function.

China Daily-Agencies

(China Daily European Weekly 07/25/2014 page18)