What's news

Economy

Slowing economy keeps inflation under control

The inflation rate eased to a four-month low in China during August, confirming that the economy remains under pressure and providing further room for policy fine-tuning.

The Consumer Price Index rose just 2 percent year-on-year last month, compared with a 2.3 percent gain in July, the National Bureau of Statistics said.

Food prices rose 3 percent and were the main driver of inflation, contributing 1.01 points of the total gain. Breaking down food by category, the price of fresh fruit surged 21.2 percent, while the price of pork, a staple of the Chinese diet, remained flat.

For the first eight months, the CPI was up 2.2 percent, far below the official full-year target of 3.5 percent.

Society

More millionaireson Hurun rich list

China has a total of 1,090,000 millionaires whose personal wealth is as much as 10 million yuan ($1.6 million), up 3.8 percent year-on-year, according to the Hurun Wealth Report 2014 released on Sept 11. The number of super-rich whose personal wealth is at least 100 million yuan rose 3.7 percent to reach 67,000. The report also said that in the next three years, the number of millionaires could reach 1.2 million and the number of super-rich 73,000.

Wealthy moving toN America, Europe

Almost half of China's wealthy are considering moving to a developed country within the next five years to find better educational and job opportunities for their children, according to a report by Barclays Plc. North America and Europe may see the greatest influx of wealthy individuals, according to the report by Barclays Wealth Insights, which surveyed more than 2,000 individuals and investors.

The survey was conducted among individuals with more than $1.5 million in total net worth, said Barclays, the UK's second-largest bank by assets. China leapfrogged Germany and Japan in the past five years to trail only the US in a ranking of countries by private wealth, according to a study by Boston Consulting Group in June.

Finance

Bank of China tappedfor Paris yuan clearing

The People's Bank of China, the central bank, said on Sept 15 it had appointed the Bank of China, the country's main foreign exchange lender, as the yuan clearing service bank in Paris in the country's latest move to expand the offshore yuan market. The People's Bank of China made the announcement in a statement posted on its website, www.pbc.gov.cn. The Bank of China was previously selected to provide yuan clearing services in Frankfurt, Germany and Australia.

Beijing may boost gold share in foreign reserves

China may join other emerging countries in boosting gold reserves as the precious metal makes up a smaller share of its foreign-exchange holdings compared with developed economies, said a London-based researcher. The country has not announced any changes to state gold reserves since authorities in 2009 said holdings totaled 1,054.1 metric tons. While China holds the world's biggest foreign-exchange reserves, bullion accounts for 1.1 percent of the total, compared with about 70 percent for the United States and Germany.

Talks underwayon Islamic finance

Standard Chartered Plc is in talks with potential corporate sukuk issuers from the Chinese mainland and Hong Kong. The lender, the fourth-largest Shariah-compliant debt arranger this year, sees Hong Kong as a "unique opportunity as a gateway to the Chinese mainland", said Afaq Khan, the Dubai-based chief executive officer at Standard Chartered Saadiq.

Sukuk are Islamic financial certificates like bonds that comply with Shariah, Islamic religious law.

Hong Kong's entry into the Islamic market would see increased interest in assistance in setting up funds in line with religious tenets and structuring sukuk, according to law firm Appleby Global Group Services Ltd.

Banking

Shanghai clothing firmto set up private bank

Metersbonwe Group, a Shanghai-based casual wear apparel retailer, plans to set up a private banking entity in Shanghai called Huarui Bank Co Ltd with an investment of 750 million yuan ($122 million). The other co-founder is Junyao Group, a Shanghai-based service-oriented firm with a focus on industry investment.

The State Administration for Industry and Commerce certified the corporate names of China's first three private banks last month. The other two were Sunan Bank Co Ltd and Suning Bank Co Ltd.

Company

Chery tops Tencentin 'QQ' trademark row

Chery Automobile, the Chinese carmaker, beat Tencent Holdings Ltd in a war over the ownership of the trademark "QQ" for vehicles, according to a recent ruling by the Beijing Supreme People's Court. The court ruled that Shenzhen-based Internet giant Tencent must withdraw its registration of the trademark for automobiles.

The two companies have been fighting over "QQ" since 2005. Tencent, which is known for its online messenger QQ, applied to register the trademark as a Class 12 commodity, which includes automobiles, in 2005. The application was granted on March 7, 2008. However, Chery, which also produces a type of vehicle branded as QQ, applied to the Trademark Appeal Board to withdraw the approval of the trademark.

Resources

CNOOC invitesforeign bids on blocks

State-run CNOOC Ltd, China's top offshore oil producer, has issued a tender inviting foreign bids for oil and natural gas blocks in offshore areas, including the South and East China seas, the company said.

CNOOC will offer 33 offshore blocks, with a total area of 126,108 square kilometers, for foreign participation this year, the company said on its website. Of the total, 25 blocks are in the South China Sea, four in the East China Sea and the rest in the Yellow Sea, it said.

Gas field found in South China Sea

The country's largest producer of offshore oil and gas, China National Offshore Oil Corp, or CNOOC, said on Sept 15 that CNOOC 981, its first deepwater drilling rig, had reported its first deepwater gas field discovery in the South China Sea.

The newly discovered Lingshui 17-2 gas field is 150 kilometers south of Hainan Island. Its average operational depth is 1,500 meters below the ocean surface, the company said. Xie Yuhong, a manager with CNOOC, said the Lingshui 17-2 well was tested to produce 56.5 million cubic feet of natural gas a day, equal to about 9,400 barrels of liquid oil a day.

Energy

NDRC seeks cut inwind power subsidies

The top economic planning agency in China has proposed a 3-8 percent cut in subsidies to wind power generators, but the plan faces opposition from the country's big state-owned power companies, newspaper China Business News said.

China has become the world's biggest wind power generator over the past few years, helped by a government feed-in tariff system offering generators between 0.51 and 0.61 yuan (8 cents to 10 cents) per kilowatt hour generated. But earlier this year, the State Council approved a strategic plan put forward by the National Development and Reform Commission to reduce tariff levels, in a move to cut state spending while recognizing that the wind power industry is strong enough to rely less on subsidies.

China Daily-Agencies

(China Daily Africa Weekly 09/19/2014 page18)