IN BRIEF (Page 18)

Ethiopians hail new rail link during trial run

Passengers taking part in a test run of a new Chinese-built railway in Ethiopia's capital Addis Ababa have hailed the project for boosting the city's transport services.

The Addis Ababa Light Railway, an electric-powered service on two lines of 32 kilometers, has been in trial operation since February. The $475 million project has been built by China Railway Engineering Corp.

Residents have been able to ride the 9 km stretch between Kality and Meskel Square and have praised the railway for its contribution to transportation services and technology development in Addis Ababa, home to the headquarters of the African Union, the United Nations Economic Commission for Africa, and other international organizations.

IMF changes its stance on renminbi valuation

The renminbi is "no longer undervalued", the International Monetary Fund said on May 26 in Beijing, marking a change to its long-held stance that China's currency is "modestly undervalued".

"While undervaluation of the renminbi was a major factor causing large imbalances in the past, our assessment now is that the substantial effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued," the IMF said in a statement after meeting with Chinese officials.

The yuan has gained sharply against most non-dollar currencies in recent months.

Belt and Road plan 'good for regional cooperation'

Joint efforts by China and the Arab world to implement the Belt and Road Initiative will further enhance regional economic cooperation and help promote stability and prosperity, a senior Chinese political adviser said on May 26.

Wang Zhengwei, vice-chairman of the National Committee of Chinese People's Political Consultative Conference, made the remarks while addressing the sixth session of the Conference of Arab-Chinese Businessmen.

He said China and the Arab world enjoy a long-running friendship, strong political ties and economic complementarity, as well as growing trade connections.

Wang also urged the two sides to step up strategic energy cooperation, increase two-way trade and mutual investment, boost interconnectivity in infrastructure, and promote exchanges between industrial and business communities.

Lebanon's Prime Minister Tammam Salam, who attended the opening session, said his country is looking forward to playing a key role in the economic course of the Silk Road initiative.

"China is Lebanon's largest trading partner, and we expect this partnership to extend, owing to the new horizons of cooperation," he said.

Central bank to ease bond procedures

The People's Bank of China will simplify administrative approvals for bonds to be traded on the interbank market, home to most of the nation's debt.

Government and corporate debentures, as well as asset-backed securities, can be exchanged after key information is registered at the National Interbank Funding Center, the central bank said in a statement on May 26. Approval procedures for issuance will remain the same.

Automaker BYD in10b yuan A-share plan

BYD Co plans to raise about 10 billion yuan ($1.6 billion) in a private A-share placement, sources familiar with the matter said, after a stock market rally saw its Shenzhen-traded shares almost double in value this year.

The automaker is working with China International Capital Corp, China Merchants Securities Co, Guosen Securities Co and UBS Group AG on the plan, the source said on condition of anonymity.

Economic outlook bright, experts say

Despite changing demographics and shifting growth patterns, China's economic prospects in the next decade remain positive as the industries continue to climb up the value chain and open to international markets, economists and experts said at the Shanghai Forum, hosted by Fudan University, which ended on May 25.

"Many people hold a negative view on China's economic growth prospects in the coming decades, given China will be an aged society by 2030, spelling an end to the demographic dividend," said Yao Yang, a professor at the China Center of Economic Research and the National School of Development, Peking University. "But China can take many measures before then that will have a positive effect on economic growth."

China's enterprises and policymakers have already taken steps to accelerate economic transformation and boost growth, as well as achieve a higher position on the global value chain, experts said.

Manufacturers to grow overseas presence

Chinese manufacturers are poised to expand their global presence thanks to a string of policies supporting the export of high-value industrial capacity. "Collaboration on capacity means more than exporting finished products," said Gu Dawei, head of the foreign investment administration department of the National Development and Reform Commission. "It means the transfer of the whole industrial chain to help other countries beef up their manufacturing capability." International industrial cooperation has been a key priority of Chinese government reform after slower economic growth last year.

ICBC acquires 75% stake in Turkish bank

Industrial and Commercial Bank of China Ltd, the world's largest bank, said on May 25 that it completed the acquisition of 75.5 percent stake in Tekstilbank from Turkish GSD Holding, making it the first business institution operated by a Chinese bank in the country. The announcement was made by Jiang Jianqing, chairman of ICBC, at an official inauguration ceremony in Ciragan Palace, which was attended by Turkey's Deputy Prime Minister Ali Babacan.

Dongguan reaps the rewards of automation

Productivity in a Southern China manufacturing hub rose 17 percent last year while shedding 6.8 of their labor thanks to the adoption of automation and robots, the municipal government said. Companies in Dongguan, Guangdong province, began modifying their manufacturing processes late last year as labor supply in one of the world's largest manufacturing regions began to shrink. Rising labor costs resulting from a dwindling labor pool in China have hurt the competitiveness of products made by Chinese manufacturers.

Big data laboratoryon the way in Guiyang

The first big data strategy laboratory in China has been formally set up on May 24 in Guiyang, capital of Guizhou province. The lab, established by Beijing Municipal Science & Technology Commission and the city government of Guiyang, is part of Guiyang's efforts to drive economic growth through the development of big data industry. The city also plans to be China's big data valley. Big data is the leading industry to drive innovation, which will be a decisive choice for both economic growth. and ecological protection in Guiyang city, said Long Yongtu, former deputy trade minister.

(China Daily Africa Weekly 05/29/2015 page18)