What's news

Agriculture

Soybean prices slump on import restrictions

Soybean fell to its lowest level since 2010 after China suspended import approval on two genetically modified traits and US farmers began harvesting a record crop. Corn rebounded from a five-year low.

Soybean prices have now tumbled 30 percent this year on expectations that a record harvest in the US, the top grower, will boost global supply. Two genetically modified traits currently not grown in commercial quantities in the US were held as "pending" in China, the biggest buyer, said Jim Sutter, chief executive officer of the US Soybean Export Council.

Energy

Coal prices recover lost ground as output falls

Power-station coal prices in China rebounded from their lowest level in seven years as government-ordered production cuts started to take effect. Spot coal with an energy value of 5,500 kilocalories per kilogram at the port of Qinhuangdao, the nation's benchmark grade, rose to an average of 480 yuan ($78.20; 62 euros) a metric ton on Sept 28, according to data from the China Coal Transport and Distribution Association in Beijing, the first weekly gain since June.

The price had been unchanged at 475 yuan since Aug 10, the lowest level since September 2007.

Gas, diesel prices reduced for fifth time

The nation's top economic planner announced a 100 yuan per ton ($16.25; 12.90 euros) cut in the retail price of petrol on Sept 29, and a 95 yuan cut in the price of diesel. The cuts equate to drops of 0.07 yuan per liter for gas, and 0.08 yuan for diesel, said the National Development and Reform Commission.

They marked a fifth consecutive drop in oil prices, which have now declined by 0.6 yuan since the beginning of July.

A pricing regime that came into effect last year adjusts domestic fuel prices when international crude prices change by more than 50 yuan per ton for 10 working days.

Tourism

More needed to boost travelers' spending

The government must increase its efforts at ensuring domestic tourists spend more on shopping and also come up with more tours for travelers if it wants to achieve the desired targets for the industry, officials from the tourism authority and the top economic planner said on Sept 29.

The State Council released guidelines in August to boost tourism in China, vowing to boost domestic tourist consumption to 5.5 trillion yuan by 2020.

China needs more tourism offerings that are "attractive and culturally distinct", said Peng Decheng of the China National Tourism Administration.

Internet

JD.com to begin work on Guangzhou HQ

JD.com, one of China's largest retail portals, is to start construction of its headquarters for South China in Guangzhou, capital of Guangdong province, in December.

The operation center of the 1 billion yuan headquarters is expected to be completed in the second half of next year, with the entire project scheduled for completion in March 2016, said Yin Hongyuan, deputy president of JD.com Inc.

Finance

ABN to expand commodity lending

ABN Amro Group NV, the Amsterdam-based bank, is to expand its commodity financing operations in China, undeterred by a probe into loan fraud at the port of Qingdao, the lender's global commodities head said on Sept 29.

Jan-Maarten Mulder added the bank found nothing irregular after reviewing its lending procedures amid an investigation by the Public Security Bureau into the use of metals by a Chinese trading company as collateral.

China is the world's biggest consumer of metals and energy. ABN Amro is expanding its commodity lending in China amid speculation the Qingdao probe will accelerate the exit of banks from the business.

IT

Agreement signed with network operators

China's three basic telecom operators have signed an agreement with six virtual network operators that covers the introduction of a dynamic price adjustment mechanism for mobile telecom resale services.

The pact, signed at the China Virtual Carrier Industry Conference, means that China Mobile Ltd, China Telecom Corp Ltd and China Unicom Ltd will adjust the wholesale prices of mobile telecom services they sell to virtual network operators whenever they adjust rates for their own mobile telecom services.

Mobile Internet security worth $1.5bn

The value of China's mobile Internet security industry will exceed 10 billion yuan ($1.5 billion) within five years, according to top analysts attending the 2014 China Internet Security Conference on Sept 24.

Researchers from iResearch and Analysys International said the surge in popularity of mobile Internet services and frequent incidence of smartphone fraud will lead to an expansion of the mobile Internet security market.

Finance

Bank allows new mortgage policies

Bank of China Ltd has allowed its branches to adjust mortgage policies in accordance with local market conditions, becoming the first of China's major banks to publicly acknowledge an easing of rules governing home loans.

The bank's branches can adopt policies based on customer demand for home purchase but need to be more efficient at approving loans, the country's fourth largest lender said in a statement.

It added it is committed to shouldering the "social responsibility" of supporting individual mortgages.

Tight financial condition to 'cut steel demand'

China's steel demand will be lower in the fourth quarter than in the third because of funding difficulties, said Zhang Hai, vice-president of Hebei Iron and Steel Corp, the country's biggest producer.

"Even if there is demand, buyers just don't have funds," Zhang told an industry conference.

Wang Xiaoqi, vice-chairman of the China Iron and Steel Association, earlier said apparent crude steel consumption in China, the world's top consumer and producer, has dropped 0.3 percent to 500 million metric tons in the first eight months of the year.

Auto

Tianjin Faw lowers annual sales target

Tianjin Faw Toyota Motor Co Ltd has cut its annual sales target for 2014 by 6 percent, from 660,000 vehicles to 620,000, citing the sluggish economy and high inventories.

Its sales in the first eight months grew 5.4 percent to 342,900 units.

JV diesel plant starts production

A plant making MaxxForce-branded diesel engines has started operation in Hefei, capital of East China's Anhui province.

The plant, owned by Anhui Jianghuai Navistar Diesel Engine Co Ltd, is a 50-50 joint venture between Chicago-based truck and engine producer Navistar International Corp, and Chinese automaker Anhui Jianghuai Automobile Co Ltd.

The new facility is the first phase of the joint venture, and involves total investment of 1.8 billion yuan.

Supplier denies child laborer claim

Huizhou Haiger Technology Co Ltd, a Chinese supplier for Samsung Electronics, has denied an August China Labor Watch report accusing it of using more than 10 child laborers.

The company said a joint investigation conducted by Haiger and Samsung found no such child labor, but it confirmed it had received about 200 students from vocational schools as interns, all of whom were older than 16.

(China Daily Africa Weekly 10/03/2014 page18)