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Auto

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.

Cooperation

China, Madagascar boost geosciences ties

China and Madagascar strengthened their collaboration in geosciences as a memorandum of understanding was signed recently among the University of Antananarivo, Beijing-based China University of Geosciences and the China Geological Survey.

"This governmental cooperation will bring economic development to Madagascar and will strengthen relationships between the two countries," said Xie Xuewen, CUG vice-president, who led a four-member delegation for a three-day mission in Madagascar.

Antananarivo University's president, Panja Ramanoelina, said that the pact will provide to Madagascar teachers and students the opportunity to develop a geological map and strengthen exchanges with Chinese professors and students.

Marson Raherimandimby, dean of the Faculty of Science of the Antananarivo University, said, "Because we lack materials, Malagasy students from the Antananarivo University soon will go to continue their studies in China. Madagascar is rich in mining resources but poor in experts in geosciences."

Economy

China's debt topped 250 percent of GDP

China's debt rose above 250 percent of the nation's gross domestic product at the end of June, said a report released by Standard Chartered Plc. Statistics from the central bank show that total social financing is likely to top 18.5 trillion yuan ($2.98 trillion) in 2014 and that new yuan loans will possibly reach 9.5 trillion yuan.

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.

Internet

'Clean Internet' campaign extends to apps

The government plans to crack down on smartphone apps with obscene content as part of its efforts to clean up the Internet. The anti-pornography campaign is meant to encourage companies to remove the offensive material themselves, the Ministry of Industry and Information Technology said on its website.

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.

Sinopec's oil, gas output up 8 percent in first half

China Petroleum & Chemical Corp (Sinopec), Asia's biggest refiner, reported an 8 percent gain in first-half oil and gas production as overseas output doubled. Output rose to 237 million barrels in the six months ended on June 30, the refiner said in a statement on July 21. Production rose faster than the 3.8 percent increase a year earlier.

China Daily-Agencies

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