What's news

Train merger gets green light from shareholders

Shareholders of CSR Corp and CNR Corp approved a proposed merger of the two companies on March 9, paving the way for the establishment of the world's largest maker of rolling stock with annual revenue of more than $30 billion.

All assets, liabilities, certifications, staff, contracts and other rights and obligations of the two companies will go to the new merged entity, both CSR and CNR said in separate announcements.

CNR holds 51.83 percent of its listed company, while HKSCC Nominees Ltd holds 17.39 percent and an investment subsidiary of the parent group holds 2.82 percent. The rest is held by parties including China's National Social Security Fund and China Construction Bank Corp.

Water project helps sustain population

The Ethiopian capital Addis Ababa would be able to provide water to two-thirds of its population with the new 70,000-cubic-meter supply project being built by a Chinese constructor.

The project, carried out by China's CGC Overseas Construction Group, is expected to rise the city's water supply capacity by over 30 percent to 464,000 cubic meters, satisfying water demand for two thirds of its four million population.

The 95-million-dollar project is solely funded by the Exim Bank of China. It is part of the city's plan to improve water supply to meet the growing demand prompted by rapid economic development, Aweke Hailemariam, General Manager of Addis Ababa's water company said at the inaugurating ceremony on March 8.

China's Silicon Valley has 49 startups a day

China's answer to Silicon Valley is experiencing a surge in new technology companies as the world's most populous nation reduces its reliance on manufacturing. Beijing's Zhongguancun district birthed 49 startups daily last year as innovation takes root in the country, Wan Gang, the nation's minister of science and technology, said on March 10 in Beijing. China now has more than 1,600 technology incubators, Wan said. Zhongguancun is home to a raft of established Chinese technology companies.

Nation to reduce coal consumption

The government will contemplate more steps to reduce coal usage this year as part of its ongoing efforts to reduce air pollution and slash energy use, which is expected to grow at its lowest rate in 25 years. The National Development and Reform Commission said in its annual report on March 5 that it would implement policies aimed at reducing coal consumption and controlling the number of energy-intensive projects in polluted regions.

Money market funds post major growth in assets

Total assets for money market funds surged six-fold in the 18 months through December, rising to 2.2 trillion yuan ($351.3 billion), according to Fitch Ratings. The expansion was driven mainly by retail investments in e-commerce-related funds, Fitch analysts Li Huang, Charlotte Quiniou and Alastair Sewel wrote in a report. Retail investors accounted for more than 70 percent by the end of last year's second half, the report said, adding that the five largest asset managers held 51 percent of total assets. Yu'ebao, managed by Tianhong Asset Management Co and sold online by Alibaba Group Holding Ltd, was the largest with 26 percent.

Sinopec to cut crude oil purchase costs

China's largest oil refiner is seeking to cut its crude-purchase costs as the world's biggest energy consumer looks to benefit from the collapse in benchmark prices. China Petroleum and Chemical Corp, also known as Sinopec, has a target to buy crude this year at more than $1 a barrel below its 2014 benchmark cost, said Yu Xizhi, general manager of the company's second-largest refinery. The nation's oil imports climbed 9.5 percent to a record high last year amid the biggest slump in prices since the 2008 global financial crisis.

Interest-rate swaps climb to six-month high

Interest-rate swaps rose to a six-month high in China on March 9 as a bigger-than-expected jump in exports reduced prospects for monetary easing. Overseas sales surged 48 percent from a year earlier in February, exceeding the median estimate of 14 percent, according to a Bloomberg survey. Including January figures, shipments rose 15 percent, outpacing the 6-percent trade growth mark the government is targeting for 2015. The central bank cut its benchmark interest rates on March 1 for the second time in three months and in February relaxed reserve requirements for all banks for the first time since 2012.

UBS names new head of China operations

Switzerland-based UBS Group AG announced that Karen Chen has taken over as president of UBS (China) Ltd and will be nominated as executive director in addition to her role as head of wealth management. Chen joined UBS (China) in 2014 from Commonwealth Bank of Australia where she was CEO for its China division. She has also held senior positions across various functions at Standard Chartered Bank.

Auto sales surge for GM and its Chinese partners

Auto sales of General Motors Co and its joint ventures in China reached a record 261,072 units in February, up 1.3 percent year-on-year. Buick sales fell 0.1 percent from the previous year to 59,088 units in February; Chevrolet sales climbed 2.5 percent to 47,521 units; Cadillac sales hit a record 5,959, up 36.1 percent; and Baojun sales rose 391.6 percent to 27,542 units, the Detroit-based automaker said. In February, Shanghai GM's domestic sales were up 2.4 percent year-on-year to 112,568 units, it said.

Overseas transactions from Chinese up

Transactions made by China's outbound tourists during the Spring Festival jumped 50 percent year-on-year in February, according to data released on March 5 by UnionPay International, the international business branch of China UnionPay.

Several destinations including South Korea and the United States were popular among Chinese outbound travelers due to a rise in promotions from merchants. Japan, Russia, Italy and Turkey were also popular during the Lunar New Year seven-day break, the report said.

Huawei, Intel expand computing alliance

Huawei Technologies Co Ltd and Intel Corp are expanding an existing alliance to provide cloud computing to global telecom carriers, even as several United States-based tech firms court Chinese companies to gain access to the tough mainland market.

Steel output may fall to 814m tons in 2015

Steel output in China will shrink this year as consumption has peaked and more mills in the world's largest maker of the alloy will shut down, according to the China &Iron Steel Association. Output will contract to an estimated 814 million metric tons in 2015 from 823 million tons last year, Deputy Secretary-General Li Xinchuang said at an iron ore conference in Perth, Australia, on March 10. The association is funded by China's major steelmakers and is the only nationwide industry body. Squeezed by a housing slump and industrial overcapacity, China grew at the weakest pace since 1990 last year and is set to slow further in 2015.

Internet firms urged to develop electric cars

China will encourage Internet companies such as Leshi Internet Information & Technology Corp to develop electric vehicles, said Miao Wei, minister of Industry and Information Technology, because they have the potential to create a new manufacturing model for the auto industry. "We will encourage them because they can completely outsource their production," Miao said on March 5 in Beijing.

China Daily

(China Daily Africa Weekly 03/13/2015 page18)