What's news

Steel exports rise for record fifth month

Steel exports from China, the world's largest producer of the metal, rose to a new high for the fifth straight month as new taxes for some shipments failed to slow sales.

The country shipped 10.29 million metric tons of steel in January, a 52 percent rise from the same month in the previous year, according to data released by the customs administration in Beijing.

China's outbound shipments surged 51 percent to a record 93.78 million tons in 2014 as producers sought overseas buyers while domestic construction slowed and the economy cooled.

Deutz, Volvo pull plug on China engine deal

German engine maker Deutz said on Feb 11 that it has agreed with Swedish truck maker Volvo to pull the plug on their planned joint venture in China. "Having completed a thorough and comprehensive review, (Deutz and Volvo) have now agreed that the planned production company should be wound up given the weak prevailing market situation in China," Deutz said in a statement. The two partners had not yet invested substantial sums in the joint venture, which had been expected to be set up at the end of this year, the statement said.

Govt wants to link HK, mainland bond markets

The Chinese government is working on a plan to link its bond market to Hong Kong's, giving foreign investors access to the world's third-largest debt market, the South China Morning Post reported on Feb 10. A state-backed clearinghouse for the nation's interbank note market told regulators and industry groups it was interested in a "bond connect scheme," the newspaper said, citing people it did not identify.

Stocks in emerging markets lose ground

Stocks on emerging markets had their biggest declines in a week after Chinese imports plummeted and Greece reaffirmed its rejection of the country's bailout program. India's rupee fell after reports that Prime Minister Narendra Modi's party is likely to suffer a setback in local elections, weakening 0.7 percent against the dollar. China Shipping Container Lines Co dropped 1.3 percent. India's Sensex headed for its longest losing streak in 15 months. Paradise Co sank the most since 2008 in Seoul, pacing a slump in gaming stocks after China clamped down on foreign casinos.

Central bank touts role of Internet finance

Lu Lei, head of the research bureau at the People's Bank of China, said the growing Internet finance sector will help direct much-needed capital into financial products designed for micro and small enterprises as well as agricultural companies. He said China needs financial reforms and innovation to better guide the direction of capital. "With the help of Internet technologies, small companies and the general public will receive financial services more conveniently. This kind of system will screen qualified financiers more efficiently," he said.

Govt to roll out water supply pilots

The government is making the issue of water prices a major topic for its agricultural reform agenda as the nation continues to tackle its scarcity of water resources, according to the Economic Information Daily on Feb 9. The government will reportedly soon roll out pilot programs across 80 counties nationwide and draw up an overall plan that will be submitted to the State Council. The first pilots will be initiated in areas that currently overuse their underground water supplies. The program taxes for excessive water usage and issues subsidies for saving water.

Carmakers given OK to import vehicles

Baoxin Auto Group Ltd, China Rundong Auto Group Ltd and a China Yongda Automobile Services Holdings Ltd unit will soon import their vehicles as part of a trial within the Shanghai Pilot Free Trade Zone. Seventeen carmakers have been cleared to ship cars without the brand owner's authorization. The decision comes as the government reviews industry rules that govern the relationship between automakers and dealers in China.

Qingdao to attract foreign fund management firms

Qingdao, the coastal city in Shandong province, has launched two pilot programs to further open its asset management market to overseas fund managers. Under the program, qualified foreign asset management companies can set up private yuan-denominated funds in China to invest in international markets. The other program allows qualified foreign funds to invest in the Chinese private equity and venture capital markets.

PBOC injects funds into markets

The People's Bank of China, the nation's central bank, has injected funds into markets through reverse repurchasing agreements to meet rising cash demand before the Lunar New Year holiday. The PBOC pumped 80 billion yuan ($13.05 billion) into money markets on Feb 10 through 14-day and 21-day reverse repos, a process in which central banks purchase securities from banks with an agreement to resell them at future dates.

Regional govts scrap new homes rule

Local governments are scrapping a decade-old law that restricts the size of new homes as the property market continues its slide, China Economic Weekly said on Feb 10. The restriction, imposed in 2005, stipulated that sold apartments smaller than 90 square meters should be no less than 70 percent of a new housing project, and no less than 70 percent of a city's total housing space. Sichuan province, Tianjin and Xiamen, Fujian province, have already removed the curb on home purchases.

CSR unit buys deep-sea robot designer

A subsidiary of CSR Corp Ltd, a major manufacturer of trains in China, has agreed to buy Specialist Machine Developments Ltd, the British firm behind the building of the world's first deep-sea mining robot. The deal, worth about 130 million pounds ($198 million), was signed in the United Kingdom between Zhuzhou CSR Times Electric Co and SMD.

Inland provinces apply to establish free trade zones

Eight provincial governments have applied to establish their own free trade zones this year, the China News Service said on Feb 10. Last year, over 20 provinces sought approvals for FTZs. This year there is strong interest in establishing free trade zones among inland provinces, including Shaanxi, Gansu, Henan, Hubei, Jilin, Liaoning, Shandong provinces and the Guangxi Zhuang autonomous region.

Marine output value surges to $961 billion

The total value of China's marine output soared to about 6 trillion yuan ($961 billion) last year, a 7.6 percent year-on-year growth, said Wang Hong, the head of the State Oceanic Administration, on Feb 9. Wang said the marine biopharmaceutical sector remained the fastest-growing sector, while engineering equipment also expanded.

China Daily

(China Daily Africa Weekly 02/13/2015 page18)