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Foton's new-energy vehicle center

Beiqi Foton Motor Co, a major Chinese commercial vehicle maker, announced it would establish a new-energy vehicle manufacturing center in Shandong, with a projected investment of 1.5 billion yuan ($241 million).

The factory center would be able to produce 10,000 vehicles every year by 2020, mostly new-energy buses, and by 2020 the center is estimated to be earning revenue of 7 billion yuan annually.

The center will also incorporate multiple assembly factories and spare parts makers, as well as a new-energy research and development center. Local automakers such as Shandong Multi-function Vehicle Company, and Foton LVC6060 light truck factory, would supply parts and services for the center.

Zhao Jingguang, spokesman of Foton, said new-energy vehicles would make up 25 percent to 30 percent of Foton's total output by 2020. "This new-energy base is an essential part of Foton's worldwide expansion, as it is not only the major manufacturing site for new-energy vehicles, but also a future base for exports," he said.

Tax rebate end cuts boron steel exports

Analysts say the removal of a tax rebate on boron steel exports is likely to cut Chinese shipments by as much as 30 percent, worsening oversupply in the domestic market. China ended an export-tax rebate on steel alloys that contain boron on Jan 1, according to a Ministry of Finance statement. As a result, the nation's overseas steel sales could fall by between 20 and 30 percent in the first quarter from the previous three months because of the move, said Custeel's chief analyst, Hu Yanping. China International Capital Corp analyst Ma Kai forecast a 25 percent decline in exports.

Chinese steel exporters have been adding boron to some of their steel products to receive the rebate, which can be as high as 13 percent when they sell overseas.

BOC gets renminbi mandate in Malaysia

State-owned Bank of China has been authorized to conduct renminbi clearing business in Kuala Lumpur, Malaysia, the People's Bank of China, the central bank, said on Jan 5. The authorization came after a mutual cooperation memorandum was reached between the two nations' central banks, the PBOC said. Renminbi clearing business in overseas markets has become a major tool in promoting globalization of the Chinese currency.

More funding options ready for small firms

The China Insurance Regulatory Commission has allowed insurance funds to establish private funds for supporting the development of mini, small and medium-sized enterprises. Most of the newly set up funds would be in the form of limited partnerships, the regulator said.

The new funds are expected to collectively raise 2 billion yuan ($322 million), including 200 million yuan as initial proceeds, and the amount would be disbursed as equity investments in many small companies.

Wanda raises $161m for e-commence venture

Chinese conglomerate Dalian Wanda Group Co has raised 1 billion yuan ($161 million) for its e-commerce joint venture with Internet giant Baidu Inc and Tencent Holdings Ltd. Wanda, the commercial property developer controlled by billionaire Wang Jianlin, said on Jan 4 that two overseas Internet funds had offered 1 billion yuan to buy a 5 percent stake in its e-commerce joint venture.

The round of funding values the Hong Kong-registered e-commerce firm at 20 billion yuan. Wanda, Baidu and Tencent jointly formed the e-commerce company in August. Wanda owns 70 percent of the venture with the two Internet giants splitting the remaining 30 percent.

Xiaomi annual sales double to $1.96 billion

The chairman of Chinese smartphone brand Xiaomi, a rising star of the consumer technology industry, said that sales more than doubled last year to 12.2 billion yuan ($1.96 billion) and that the company plans to expand further into global markets.

Just five years old, the company sold 61.1 million handsets, a 227 percent increase over 2013, Lei Jun said on his company blog, and revenue rose 135 percent to 74.3 billion yuan. Xiaomi overtook South Korean tech giant Samsung Electronics Co in the second quarter of last year to become China's biggest selling smartphone brand by number of handsets sold.

Jumei Youpin accused of smuggling fakes

Jumei Youpin Cosmetics Group is alleged to have smuggled unidentified cosmetics and even fake products from overseas markets for distribution in China, according to two unnamed officials with its overseas department.

Customs officials in Zhuhai, Guangdong province, had in September 2014 seized cosmetics worth 20 million yuan ($3.22 million) that were being smuggled into the country. Its Beijing-based warehouse was later sealed. The company took immediate steps to block the information and also changed its warehouse.

Yuan-denominated free trade account for FTZ

The State Administration of Foreign Exchange and the People's Bank of China will soon launch a pilot foreign currency-denominated free trade account at the China (Shanghai) Pilot Free Trade Zone. The administration is assessing the yuan-denominated free trade account to facilitate offshore financing and outbound investment.

The PBOC monitors the flow of funds and compliance of free trade accounts of individuals, enterprises and financial institutions, and separates their financial management from accounts on the Chinese mainland.

Regulator gives green light to 20 new IPOs

The China Securities Regulatory Commission has accelerated the approval of initial public offerings by Chinese companies on the A-share market starting this year. The regulator has approved 20 IPOs in 15 trading days, according to a statement issued on Jan 5. That is almost double the number of IPOs approved in the last batch.

ICBC given renminbi clearance mandate

The People's Bank of China, the central bank, said on Jan 6 that it had appointed the Industrial and Commercial Bank of China Ltd as the yuan clearing service bank in Thailand. The bank will be authorized to clear yuan trades in Bangkok, the PBOC said in a statement.

Energy trading center planned in Shanghai

Shanghai municipality has approved the creation of an oil and natural gas trading center aimed at bolstering the city's influence on the global commodity market. The center would be financed jointly by 10 Chinese companies and would be subject to the guidance and regulation of the National Development and Reform Commission, the National Energy Agency and regulators of the commodity spot trading markets, according to a statement from Shanghai posted on its website. Commodities including oil, natural gas, liquid petroleum gas and unconventional resources such as shale gas would be traded at the center.

Li vows more steps to protect farmland

China is pushing forward plans to designate permanent farmland around 14 cities to better protect arable land from urbanization. Premier Li Keqiang said on Jan 5 that strict protection of farmland would help ensure the country's grain supply.

Protected farmland, also known as controlled environmental agriculture, refers to farming with intensive facilities, such as greenhouses and aquatic farms. Protected agriculture is necessary, supervision should be stepped up and land-use violations should be punished, Li said.

China Daily-Agencies

(China Daily Africa Weekly 01/09/2015 page18)