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Industry

Curbs may hit industrial output

Industrial output growth may come in at a six-year low this month because of restrictions on factories and construction to keep the air clean during the eight-day Asia-Pacific Economic Cooperation meeting, a leading financial institution said on Nov 12.

The impact of the APEC restrictions could be "significant" because six provinces and cities were involved, according to Beijing Gao Hua Securities Co Ltd, a financial services firm that has a partnership with Goldman Sachs Group Inc.

Gao Hua Securities said that November industrial production may increase about 6.9 percent year-on-year, on a par with the August figure, which was the lowest level since February 2009.

China's express deliveries to exceed US

Express delivery business volume in China is likely to overtake the United States this year to become the largest in the world as the Singles Day online shopping frenzy and Christmas will likely push more transactions for the sector. China's annual express delivery volume had exceeded 10 billion parcels by Oct 20 this year, the same amount as in the US in 2013, according to the State Post Bureau of China. This year's annual express delivery volume is expected to reach at least 12 billion parcels.

Aviation

New plan for aviation sector in the works

The Civil Aviation Administration of China has started to formulate a five-year (2016-20) plan for general aviation development, the Shanghai Securities News reported on Nov 12. According to the plan, China will boost construction of general aviation infrastructure and guide local general aviation industries to make diversified and coordinated development. Meanwhile, CAAC will actively cooperate with relevant administrations and military units to build a united supervision mechanism for general aviation to build a safe and orderly environment for general aviation development.

Consumer prices level off in October

China's consumer inflation hovered around 1.6 percent in October, the lowest pace since January 2010, suggesting weak growth momentum and expectations that policymakers may roll out more measures to prop up growth.

The consumer price index, a main gauge of inflation, remained flat from September levels, but down from August's mark of 2 percent, the National Bureau of Statistics said on Nov 10.

Food prices increased by 2.5 percent year-on-year in October, compared with a 2.3 percent growth in September, contributing the most to headline inflation. Non-food prices rose 1.2 percent in October, compared to 1.3 percent in September.

Trade

Soybean imports to climb in November

China is likely to see 4.47 million metric tons of soybean imports delivered to ports in November, the Ministry of Commerce said in its latest report. The ministry estimated October soybean imports at 3.32 million tons. The report is based on importers' shipments from Oct 16 to 31.

Guangzhou diamond bourse opens doors

The Guangzhou Diamond Exchange made its debut on Nov 11, said Guangzhou mayor Chen Jianhua. The capital of Guangdong province is a major diamond processing base in China and a regional diamond trading center. The volume of diamond processing in the province accounts for more than 70 percent of the national total, said Zhao Yufang, the provincial deputy governor. Rough diamond imports and exports through the Chinese mainland and Hong Kong stood at 53.15 million carats, or $5.29 billion, last year, trailing only the European Union, India and the United Arab Emirates, according to the Guangdong Entry-Exit Inspection and Quarantine Bureau.

Property

Sharp rises in overseas funding for developers

Ten benchmark Chinese property companies raised 74 billion yuan ($12.1 billion) overseas in the first 10 months of this year, accounting for 66.6 percent of the total capital raised, real estate agency Centaline Group said. The companies raised 111.15 billion yuan from all markets. Zhang Dawei, senior analyst at Centaline, said that since May, overseas financing by real estate companies had increased markedly and the cost of that financing had risen to more than 7 percent. Li Chunliang, senior consultant at Shenzhen Saipu Management Consultancy Co Ltd, said that overseas financing has become dominant because the domestic channels for raising capital are more costly and difficult to access.

IPO

Momo aims to raise $300m from IPO

Mobile chat app maker Momo is planning an initial public offering on the Nasdaq stock market to raise about $300 million, the company said. Momo submitted an IPO application on Nov 8 and according to the company prospectus, it began piloting commercialized operations in the second half of 2013. It earned $3.1 million in 2013 and $13.9 million in the first half of 2014. Membership and mobile game fees were its main sources of revenue. By Sept 30, Momo had 180.3 million registered members, up 160.8 percent year on year.

Resources

21 rare earth mining companies to merge

Guangdong Rare Earth Group is looking to integrate 21 rare earth enterprises in and out of the province and channel their assets into the Shanghai-listed Rising Nonferrous Metals Co Ltd, said a senior official at Guangdong Rare Earth. The 21 entities comprise 10 resources or mining enterprises, five deep processing companies, three resource utilization enterprises, two research and development firms and one smelting and separation company.

Finance

Shanghai FTZ to have trust registration center

The China Banking Regulatory Commission will set up a national trust registration center in Shanghai, the Economic Information Daily reported on Nov 11. The center will be located in the China (Shanghai) Pilot Free Trade Zone and will likely be controlled by the China Government Securities Depository Trust & Clearing Co Ltd, with equity participation by several institutions from Shanghai and other areas. The establishment of a national trust registration center is expected to boost the development of the country's trust registration system and trust beneficiary transfer platform.

Technology

Mobile Internet market grows by 93.4 percent

The mobile Internet market in China totaled 51.6 billion yuan ($8.4 billion) in revenue during the third quarter of 2014, a 93.4 percent year-on-year growth, according to a report released by iResearch on Nov 7. Fifty-one percent of revenue came from mobile online shopping, 20.2 percent from mobile value-added services, 15.3 percent from mobile marketing and 13.5 percent from mobile games. The market researcher attributed the rapid growth to accelerated popularization of 4G mobile phones and smartphones, the surge in mobile Internet users, and more traditional industries using the mobile Internet to boost businesses.

China Daily - Agencies

(China Daily Africa Weekly 11/14/2014 page18)