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Technology

Xiaomi steps into cloud sector

Chinese billionaire Lei Jun finally has found a major cloud service provider for Xiaomi Corp, the fast-growing smartphone startup he founded nearly five years ago.

Xiaomi and software company Kingsoft Co Ltd, both co-founded by Lei, on Dec 3 said that they would invest $222 million in 21Vianet Group Inc, the largest carrier-neutral Internet data center service provider in China.

Kingsoft will take an 11.6 percent stake in 21Vianet as a result of the transaction, while Xiaomi will take 3.4 percent.

Temasek Holdings, a Singapore government investment firm, also agreed to inject $74 million into 21Vianet.

Teaming up with a major local cloud computing provider will enable Lei to put more mobile services on smartphones made by Xiaomi and software products developed by Kingsoft.

Transport

Chinese firm finisheslaying track in Nigeria

China Railway Construction Corporation has completed track laying work on Nigeria's first standard-gauge railway modernization project that links the capital, Abuja, and the northwestern state of Kaduna.

With Nigeria's Minister of Transport, Idris Umar, tightening the last screw of the track, the first standard railway project of the Chinese firm in West Africa is formally complete for public use, the corporation said.

The line, built in three years, cost $850 million (690 million euros) and stretches a little more than 186 kilometers, with nine stations and a design speed of 150 km/h.

Trade

Tripartite zone to spurChina-Africa business

A proposed tripartite free trade arrangement to be launched by three African trading blocs will have a positive bearing in promoting China-Africa trade relations, analysts say.

The Common Market for Eastern and Southern Africa, the Eastern African Community and the Southern African Development Community are expected to launch the tripartite free trading arrangement this month.

Once launched, the free trade consortium will be the largest economic bloc on the continent and will pave way for the establishment of a continental free trade area in 2017.

Dr Lubinda Habaazoka, a lecturer in the School of Business Studies at the Copperbelt University in Zambia said the initiative presents unique opportunities for improving trade relations between China and member countries of the regional bloc.

Sorghum importsgiven green light

Quarantine authorities in China say they have approved sorghum imports from Argentina, the world's second-largest exporter, making the country the third major shipper of the grain to China after the US and Australia. The opening to Argentina could create competition for the US, the largest exporter, as Chinese feed mills are increasingly buying the grain to use as a cheap substitute for corn. China's quarantine bureau signed a protocol agreement with Argentina that authorized imports from the country from Nov 3, it said. Sorghum is traditionally used to make alcohol in China, but its use in animal feed surged last year as the industry sought to diversify ingredient supplies and replace domestic corn, which has become more expensive as Beijing supports the rural population.

Shipments of oreat seven-month low

Iron ore shipments to China from Port Hedland, in Western Australia, declined to the lowest level in seven months in November as the world's biggest buyer ordered some mills to curb output to cut pollution. Shipments totaled 29 million metric tons, the lowest since April, according to port authority data. That compares with 31.7 million tons in October and 22.3 million a year earlier.

IPO

BAIC Motor testsbuying demand

BAIC Motor Corp, the Chinese maker of Senova and Wevan cars, plans to start gauging demand for its Hong Kong initial public offering, sources with knowledge of the matter said. The Beijing company aims to raise about $1.5 billion and begin trading by the end of the month, said the sources, who asked not to be identified. Offerings planned this month by BAIC Motor, CGN Power Co and Dalian Wanda Commercial Properties Co could bring Hong Kong IPO proceeds this year to the highest since 2010, according to data compiled by Bloomberg. First-time share sales in the city have raised $17.1 billion this year, up from $13.1 billion the same period in 2013, the data show.

Companies

Wal-Mart cuts250 more jobs

Wal-Mart Stores Inc, the world's largest retailer by sales, is cutting 250 jobs in China and closing its regional office in Dalian in an effort to improve efficiency and regain its declining market share, it said. The moves came just days after it axed 20 senior level jobs in the country.

According to a statement, the company has been undergoing a transformation over the past few years that has resulted in organizational changes in its management structure.

The latest changes, it said, were aimed at consolidating its business in some regions and some divisions.

The latest 250 job losses represent 0.2 percent of its total workforce, it said. Management responsibilities previously carried out in the regional office in Dalian, in the south of Liaoning province, will be transferred to Beijing.

Finance

China expandsbond trading

The People's Bank of China, the central bank, is expanding trading in the country's biggest debt market as it weans companies from shadow financing, adding to speculation that the notes are set to extend gains. The bank will allow rural commercial lenders, rural cooperative banks and village lenders to open trading accounts in the interbank market, which accounts for more than 90 percent of all outstanding bonds in the country. Trust companies and the asset-management divisions of brokerages, mutual funds and insurers will also be authorized to trade on the bourse, the bank said.

Yuan 'gains groundas global currency'

The renminbi was used for 11.2 percent of the total payments by value between China and the rest of the world in October, up from 6.2 percent 18 months ago, the global payment services company SWIFT of Belgium says. SWIFT's latest renminbi tracker showed that 15 more countries are now using the currency for more than 10 percent of their payment value with the Chinese mainland and Hong Kong compared with April last year. In total, 50 countries of the 161 that exchanged payments with the Chinese mainland and Hong Kong last month??? have crossed the 10 percent threshold, SWIFT data shows.

Aviation

Lessor's $10.2b dealwith Airbus

China Aircraft Leasing Group Holdings Ltd has finalized a $10.2 billion deal to buy 100 aircraft from Airbus Group, subject to shareholder approval. The jets will be delivered from 2016 to 2022 and financed by bank loans, debt, equity financing and working capital among other means, CALC said in a stock exchange filing. The deal, announced on Nov 6, includes 74 A320neo aircraft. The A320neo is a revamped version of the best-selling 150-seat A320, offering fuel savings of 15 percent.

said, trains of the same type will be built at a new factory being constructed in Malaysia.

China Daily-Agencies

(China Daily Africa Weekly 12/05/2014 page18)