What's news

Mobile energy road to future

Privately held renewables company Hanergy Holding Group Ltd announced on Feb 2 that it will develop a totally solar-powered car that can go into commercial production in October.

Li Hejun, founder and chairman, said that mobile energy will revolutionize the new material, advanced manufacturing and energy-conservation industries.

Hanergy will cooperate with five vehicle designers - three foreign and two domestic - to develop three to five models of vehicles. Each will have a thin-film solar battery measuring 6 square meters that will power a vehicle for 80 to 100 kilometers after a four-hour charging period.

Lanzhou ready to build free trade zone

Lanzhou, capital of Gansu province in western China, is planning to build a free trade zone with a focus on commodities and energy trading between China and Central Asia, according to reports. Lanzhou officials were quoted as saying that a preliminary plan for the zone had been submitted to the State Council for approval.

Insurance scheme will cover food producers

China has established a pilot insurance scheme for food producers to cover losses from food safety incidents, according to a guideline issued by the China Insurance Regulatory Commission. The pilot program will be used first by companies considered to have high risks such as producers of meat, alcohol, milk powder, cooking oil and fast-food chains.

Sessions to hear details on Silk Road

Development plans for the "One Belt, One Road" initiative are expected to be released around the time of the National People's Congress and Chinese People's Political Consultative Conference sessions in early March, according to a working meeting held in Beijing. The initiative refers to the New Silk Road Economic Belt, to link China with Europe through Central and Western Asia, and the 21st Century Maritime Silk Road, to connect China with Southeast Asian countries, Africa and Europe. The meeting revealed that initial key projects would concentrate on infrastructure construction.

Parallel car imports for Tianjin trade zone

Tianjin is set to introduce a pilot program for parallel car imports and a "negative list" of off-limit areas for foreign investment in its free trade zone, according to a spokesman for the municipality's development and reform commission. The "negative list" should be published by the end of this month.

Asset-backed issues get registration system

The People's Bank of China will allow banks to issue asset-backed securities through a registration system, meaning securities sales among banks are no longer subject to regulatory approval, Chinese media reported on Feb 2. The final implementation remains subject to State Council approval, said sources close to the matter.

No job losses as rolling stock giants merge

The merger of China's two biggest rolling stock producers, CSR Corp Ltd and CNR Corp Ltd, will result in no job losses, Caixin reported on Feb 2, citing an official of the state-owned Assets Supervision and Administration Commission of the State Council. The merged company will be renamed CRRC Corp.

Rare earth firms to come together

The government has urged the top six rare earth companies to consolidate all miners and processors in the sector by the end of this year, a move that is expected to push up prices. China is responsible for more than 90 percent of global rare earth production, giving it control over the supply of a group of elements used in sectors like defense and renewable energy.

Everbright to buy Sun Hung Kai's brokerage

Everbright Securities Co, China's eighth-biggest brokerage, is nearing agreement to buy control of Sun Hung Kai & Co's securities and wealth-management businesses for about $500 million. Everbright Securities will acquire about 70 percent of the Hong Kong-based company's Sun Hung Kai Financial Ltd unit, said sources.

Steel to peak this year, says Morgan Stanley

Morgan Stanley has forecast that steel production and consumption will peak in China this year. Steel output in the world's top producer will peak at 806 million metric tons this year, drop to 801 million tons in 2016 and decline further to 795 million tons in 2017, the bank said in a commodities report on Feb 2.

62 cities included in urbanization pilot

A total of 62 Chinese cities, mostly in eastern provinces such as Jiangsu and Anhui, have been included in the country's pilot urbanization program, the National Development and Reform Commission said on Feb 3. The program's priorities include better integration between rural and urban populations and the creation of a sustainable financing scheme for urbanization projects.

Shipbuilders to gain from favorable policies

The shipbuilding industry is expected to see remarkable investment opportunities this year thanks to favorable policies, expanded construction of navy equipment and asset securitization, the China Securities Journal reported on Feb 3. The government has been continuously increasing its support to the shipbuilding sector. The People's Bank of China, the central bank, has already proposed guidelines for raising the financial support needed to upgrade ship manufacturing, and they are likely to get the green light soon. Private shipbuilding firms are likely to see booming business this year.

Export of rail equipment hits 26.77 billion yuan

China saw a surge in export of railway equipment as industry leaders actively explore overseas markets, official data showed on Feb 3. China exported 26.77 billion yuan ($4.36 billion) worth of railway equipment last year, surging 22.6 percent year-on-year, according to data from the General Administration of Customs.

Shanghai publishes environmental plan

Shanghai has launched a draft plan for its sixth three-year environmental protection campaign, according to a circular posted on the city government's official website on Feb 2. With a budget of 100 billion yuan ($16 billion), the scheme covers some 220 projects involving management over air, water, soil, landfill, industrial waste, suburban rivers, and waste from farms, plants, and food and beverage enterprises. The draft plan is now open to public consultation.

BOC unit may sell Nanyang Bank

BOC Hong Kong Holdings Ltd, controlled by China's fourth-largest lender, is considering a sale of its Nanyang Commercial Bank Ltd unit, people with knowledge of the matter said. BOC Hong Kong has been sounding out potential buyers of the Hong Kong-based lender, one person said, asking not to be identified because the discussions are confidential. Nanyang had 42 branches in Hong Kong and 14 in the mainland at the end of 2013, with HK$280.4 billion ($36 billion) of consolidated assets, according to its annual report.

China Daily

(China Daily Africa Weekly 02/06/2015 page18)