What's news

Company

Fears grow over Microsoft's jobs ax

Fears and frustration are mounting among employees at Microsoft Corp's Nokia segment in China as the 5,000-person group is likely to take the strongest layoff hit across the globe.

Microsoft plans to eliminate almost all the jobs at a development and research site and two manufacturing plants in the country, letting go 3,000 to 4,700 workers, a person familiar with the matter told China Daily.

"The newly purchased Nokia assets are set to be the largest source of job cuts in China," the source said on condition of anonymity because the topic is sensitive.

Wanda eyes top perchas developer

Dalian Wanda Commercial Properties Co Ltd, China's largest property developer, and renowned as an ambitious buyer of high-end Western assets, aims to become the largest real estate company in the world by next year, its chairman and founder, Wang Jianlin, told CNN in an interview.

The company also aims to increase its appetite for acquisitions in the culture, entertainment, retail and luxury hotel sectors.

"Our investment department and investment banks are in negotiation with many companies, but nothing is confirmed yet," said Wang, asked if he is looking at any big-brand name as a potential takeover target.

Wang, one of China's richest people, joked that he may consider buying CNN if the network is up for sale.

Auto

BMW's profit beats analysts' expectations

Bayerische Motoren Werke AG, the world's biggest maker of luxury autos, reported a second-quarter profit that beat analyst predictions of 2.25 billion euros ($3 billion) as the company sold more X5 sport-utility vehicles and added deliveries in China. Earnings before interest and taxes jumped 26 percent to 2.6 billion euros from 2.07 billion euros a year earlier, Munich-based BMW said on Aug 5 in a statement.

Technology

Anti-virus vendors'lose approved status'

China has reportedly excluded the Symantec Corp of the US and Kaspersky Lab of Russia from a list of approved anti-virus software vendors in a move that marks the latest attempt to reduce reliance on overseas software providers amid rising awareness of cybersecurity.

With the rapidly increasing innovation capacity of Chinese companies and rising concerns over information security after Edward Snowden's revelations of a National Security Agency spying program, analysts said that high-tech firms in China are heading to a rosy future in the domestic market.

Aviation

CAAC and Rolls-Royceextend training

The Civil Aviation Administration of China and Rolls-Royce Plc have signed an agreement to extend a training program for senior Chinese aviation managers for another 10 years.

The UK-based engine manufacturer provides annual four-week courses overseas for senior executives from the Chinese civil aviation industry. There is also a four-month course in Beijing every year.

"I think we will continue extending this program every 10 years to meet the huge human resources demands of civil aviation in China," said Li Jiaxiang, head of the CAAC.

China's civil aviation industry is set to enter a period of growth, and the sector is short of human resources, he said.

Trade

Duties lifted on coatedpaper imports

The Ministry of Commerce has announced the termination of anti-dumping measures applicable for imports of coated paper originating in Japan and South Korea. The ministry imposed the anti-dumping duties against imports of coated paper from the two countries 11 years ago.

Chicken exportsforecast to rise

China's chicken exports are expected to rise to 450,000 metric tons this year, said the China Animal Agriculture Association. Gong Guifen, deputy secretary-general of the association's poultry branch, said exports reached 52 countries and regions thanks to high quality and low cost, with Japan accounting for half of last year's exports. China exported 430,600 tons of chicken in 2013, up about 2 percent compared with the previous year.

M&A

Fosun to pocket Roc Oil for $442m

Billionaire Guo Guangchang's Fosun International Ltd agreed to buy Roc Oil Co for A$474 million ($442 million; 330 million euros) in cash, giving the Chinese group assets stretching from Australia to Malaysia.

Roc Chairman Mike Harding said Fosun's offer is superior to an agreement to merge with Horizon Oil Ltd, while Horizon said it expected Roc to terminate their A$800 million accord.

Fosun, the investment arm of China's biggest closely held industrial group, has been on a buying spree, ranging from insurance businesses to office buildings in New York.

Economy

Services account forbulk of new firms

The number of newly registered companies in China's service sector stood at 1.3 million in the first six months of the year, the National Development and Reform Commission said. They accounted for 78 percent of the total newly registered firms in the country during the period, the commission said. New firms in the service sector played an important role in creating jobs, it said.

IMF suggests growthtarget of 7 percent

The International Monetary Fund said China should set an economic growth target of 6.5 percent to 7 percent for next year. Chinese economists said the target was too pessimistic and most think growth above 7 percent could reasonably be expected.

Credit, shadow banking, local government finances and the real estate sector are the key and interlinked areas of rising risks facing the Chinese economy, Alfred Schipke, senior resident representative at the IMF, said in Beijing.

"We recommend an upper bound of 7 percent, with a range of 6.5 to 7 percent. That will be a strong signal that you are moving ahead with your reforms and that these reforms will have some short-term adverse implications but that is necessary in order to create the fastest sustainable growth in the future."

Investment

Pudong area aimsto lure hedge funds

Pudong in Shanghai, home to the city's main Lujiazui financial district, may offer subsidies and launch a government fund to encourage growth in the hedge fund industry, said Shi Haining, director-general of its financial services bureau.

The Pudong district government is considering a 3 billion yuan ($486 million; 362 million euros) to 5 billion yuan fund of hedge-funds, Shi told a forum in Shanghai. It will be part of a 10 billion yuan government financial industry development fund that Pudong may set up at the end of this year, he said.

Kabam gets $120mAlibaba investment

Kabam Inc, a producer of games for mobile devices, received a $120 million (90 million euros) investment from Alibaba Group Holding Ltd as part of a plan to distribute titles including Lord of the Rings in China.

The money will be used to finance growth, and an executive from Alibaba will join Kabam's board, according to a statement from the San Francisco-based company, which is now valued at more than $1 billion. Other details of the investment were not disclosed.

The accord gives Kabam a tie with China's largest e-commerce company.

China Daily-Agencies

(China Daily Africa Weekly 08/08/2014 page18)