Posts tagged ‘China’

26/03/2015

India Takes Top Spot In Producing Wealthy Households – India Real Time – WSJ

India’s affluent-household club is growing quickly.

Over the next five years, the number of such households–meaning those with financial assets of $100,000 to $2 million –is expected to jump 10-fold, to 4.9 million, according to an Economist Intelligence Unit study. In percentage terms, India ranked first among the 32 nations covered in the report.

By that same year,  the total financial assets in these households should reach $879 billion, driven by significant “economic reforms, attention to infrastructure, a stable political outlook and positive investor sentiment,” according to the report.

via Report: India Takes Top Spot In Producing Wealthy Households – India Real Time – WSJ.

26/03/2015

Britain launches Europe’s first yuan money-market fund | Reuters

Britain deepened its financial links with China on Wednesday with the launch of Europe’s first yuan-denominated money market fund, which allows investors to get direct exposure to China’s interbank lending market.

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee

The exchange-traded fund from China Construction Bank International (601939.SS), China’s second largest bank, is listed on the London Stock Exchange and can be traded in sterling, euros and yuan, Britain’s government said.

London has been keen to attract Chinese banks and encourage offshore trade in the yuan to bolster its position as the world’s main centre for foreign exchange trading.

Last year Britain became the first Western government to issue a yuan-denominated bond. On Tuesday the finance ministry’s chief economist said he viewed the yuan’s possible inclusion in the International Monetary Fund‘s currency basket as a “very live” issue.

“The launch of this (fund) will provide further opportunities for British and other global investors to invest directly into China,” said Andrea Leadsom, a junior British finance minister.

via Britain launches Europe’s first yuan money-market fund | Reuters.

26/03/2015

Hainan Airlines to buy 30 Boeing 787-9 jets, worth $7.7 billion by list price | Reuters

Hainan Airlines Co Ltd (600221.SS), China’s fourth-largest carrier, said on Wednesday it plans to order 30 Boeing Co (BA.N) B787-9 jets as it seeks to expand international routes to tap into growing demand for overseas travel from China.

The Boeing logo is seen at their headquarters in Chicago, April 24, 2013.  REUTERS/Jim Young

The order would be the biggest this year for the jet, worth $7.7 billion (5 billion pounds) according to list prices. It would also boost the aircraft maker’s 787 programme backlog to 855 planes.

China’s airline passengers are increasingly looking beyond the mainland for travel opportunities. In 2014, Chinese travellers made more than 100 million trips overseas in a year for the first time, up sharply from 8.4 million in 1998, official data show.

Hainan Airlines added two long-haul routes to North America and Western Europe last year and plans major international expansion this year, Cai Zhiquan, a brand manager told Reuters. On Thursday. it reported net profit jumped 20 percent in 2014 to 2.59 billion yuan ($417 million).

“We’ll be flying from major hubs in China to second- or third-tier cities overseas,” said Cai. “At the same time, we’ll also open up more routes from inland Chinese cities to major hub cities elsewhere.”

via Hainan Airlines to buy 30 Boeing 787-9 jets, worth $7.7 billion by list price | Reuters.

24/03/2015

China says it agrees with India to maintain border peace | Reuters

China and India have agreed to maintain peace and tranquillity along their Himalayan border while they work on resolving a long-festering boundary dispute, China’s foreign ministry said after talks in New Delhi.

China's State Councilor Yang Jiechi (L) and India's National Security Advisor Ajit Doval shake hands during a photo opportunity before their meeting in New Delhi March 23, 2015. REUTERS/Stringer

The talks are aimed at fixing a dispute over the border that divides Asia’s largest nations, part of a push to make progress on the festering row before Prime Minister Narendra Modi visits China.

China’s foreign ministry said in a statement released on Monday both countries would build on the results of previous negotiations and push forward in “the correct direction”.

“Both sides reiterated the appropriate management and control of the dispute and joint maintenance of the peace and tranquillity of the border region before the border issue is resolved,” the ministry said.

As major neighbours and developing countries, the development of relations is good for both peoples as well as for regional and global peace and development, it said.

“Both sides ought to work together to push for practical cooperation in all areas, and further increase coordination on global and international issues.”

The talks are the first since Modi took office. The nationalist Indian prime minister is keen to resolve a dispute that has clouded rapidly expanding commercial links. Any progress would throw a positive light on his expected visit to Beijing in May.

However, there is no simple solution to a conflict that largely dates back to British colonial decisions about Tibet.

The disagreement over the 3,500-km (2,175-mile) border led to a brief war in 1962 and involves large swaths of remote territory.

China claims more than 90,000 sq km (35,000 sq miles) disputed by New Delhi in the eastern sector of the Himalayas. Much of that forms the Indian state of Arunachal Pradesh, which China calls South Tibet.

India says China occupies 38,000 square km (14,600 sq miles) of its territory on the Aksai Chin plateau in the west.

In September, the two armies faced off in the Ladakh sector in the western Himalayas just as Chinese President Xi Jinping was visiting India for the first summit talks with Modi.

via China says it agrees with India to maintain border peace | Reuters.

23/03/2015

India and China Talk About Their Disputed Border – India Real Time – WSJ

Indian and Chinese officials are meeting in New Delhi this week for talks on a border dispute that has for decades strained relations between the neighbors — the first such negotiations since Indian Prime Minister Narendra Modi took office last year.

The two Asian countries are separated by a nearly 2,200-mile border whose exact location is a subject of bitter dispute. China claims India’s northeastern state of Arunachal Pradesh, which it calls southern Tibet. India claims a Chinese-controlled region it calls Aksai Chin as part of its northernmost state of Jammu and Kashmir.

India periodically accuses Chinese troops of “transgressions” across the two countries’ ill-defined boundary, known as the Line of Actual Control. Officials on both sides say such incidents are likely to continue – and perhaps escalate as India further develops its border lands – until the boundary is properly marked and settled.

The dispute cast a shadow over Chinese President Xi Jinping’s visit to India last year – and on Mr. Modi’s efforts to improve relations with China. As Mr. Xi held his first official talks with Mr. Modi in September last year, their countries’ armies were locked in a tense face-off in the Himalayan region of Ladakh. Roughly 1,000 troops were called in on both sides, making it the biggest border confrontation between the two nations in decades.

Such episodes have interfered with the two countries’ efforts to deepen commercial relations as India seeks foreign investment to modernize its infrastructure. Mr. Modi is scheduled to visit China in May as part of those efforts.

Talks this week between China’s representative on the boundary question, Yang Jiechi, and India’s national security advisor, Ajit Doval, are aimed at giving momentum to the border talks.

Indian analysts say China may be more willing to negotiate given Mr. Modi’s steps to strengthen India’s ties with the United States. Mr. Modi visited the White House last year and U.S. President Barack Obama traveled to India to review a symbolically important military parade in January, signaling a willingness on India’s part to move closer to Washington.

But, Indian officials said, it won’t be easy. “It is an incredibly difficult problem if you look at the amount of real estate at stake and the length of the border,” said a senior official at the foreign ministry, who declined to be named.  The Indian government’s approach, the official said, is “let’s not let it drift.”

via India and China Talk About Their Disputed Border – India Real Time – WSJ.

22/03/2015

Chinese capital shuts third coal-fired plant in war on smog | Reuters

China’s smog-hit capital Beijing has shut down the third of its four coal-fired power plants as part of its campaign to cut pollution, with the final one scheduled to close next year, the official Xinhua news agency said on Friday.

A security personnel walks near Tiananmen Gate on a heavily hazy day in Beijing October 24, 2014.  REUTERS/Jason Lee

In 2013, the city promised in its clean air action plan to bring annual coal consumption down to less than 10 million tonnes by 2017, a reduction of 13 million tonnes in just four years.

It said it would shut down all four of its coal-fired power plants within four years, a move that would cut annual coal consumption by around 9 million tonnes.

Officials also plan to reduce coal combustion in heating systems and industrial facilities, partly by switching to natural gas and by relocating some factories out of the city, and to phase out coal consumption completely by 2020.

A 400-megawatt facility owned by the Guohua Electric Power Co. Ltd was shut on Friday and replaced with a gas-fired plant. It followed the closure of a 93-year-old power station run by Beijing Jingneng Power on Thursday.

It shut its first coal-fired plant, the 600-MW Gaojing facility owned by the China Datang Corporation, last July.

Average levels of hazardous airborne particles known as PM2.5 stood at 85.9 micrograms per cubic meters in 2014, down 4 percent compared with the previous year, but still far higher than the national air quality standard of 35 micrograms.

Beijing plans to bring readings down to 60 by 2017, the municipal environmental bureau said earlier this year.

Only eight of the 74 Chinese cities monitored by the Ministry of Environmental Protection met smog standards in 2014. Seven of the 10 worst-performing cities were in the province of Hebei, which surrounds Beijing.

via Chinese capital shuts third coal-fired plant in war on smog | Reuters.

21/03/2015

China’s Coming Education Crisis – China Real Time Report – WSJ

Yao Xinyu, founder of a popular software hosting service called GitCafe, opted not to attend college because he felt he could do a better job teaching himself what he needed to be successful in the real world.

His parents disapproved but he stuck to his guns, studied on his own and built the successful startup after attracting 3 million yuan in capital from Greenwood Asset Management in late 2013. The 24-year old doesn’t see much chance that colleges in China will change to better meet the shifting needs of China’s economy, he said, since demand is high, their business model is profitable and there’s little incentive to adapt.

“I just decided I knew how to develop my own career,” he added.

One the knottiest problems China faces as its economy slows is a mismatch between people’s education levels and the needs of an economy increasingly reliant on technology and innovation, the Organization of Economic Cooperation and Development said Friday in a report on China.

China’s productivity is decelerating and it’s important to reverse this “worrisome” trend given the nation’s rapidly aging population and the related prospect of slower rates of savings and investment, the Paris-based organization said.

“The knowledge taught and skills nurtured at school do not sufficiently match labor market needs,” it said. “Workplace training-based vocational education arrangements are woefully inadequate.”

While China has aggressively stepped up its spending on research, this isn’t translating sufficiently into innovation, the 34-member OECD said. China’s spending on research and development hit 2% of gross domestic product in 2013, which is above the European Union average, and has set a target of 2.5% of GDP by 2020. But innovation remains weak as measured by international patenting and trademark registration, the report said. “And the bulk of university research is not relevant for business,” the OECD said.

Many of China’s past gains in productivity were related to capital, but the country’s future focus should be on the economic benefits of better trained workers, said Angel Gurria, secretary general of the Paris-based group. “Productivity, productivity, productivity, it’s not a choice, it’s a must,” he said. “Without it, China’s not going to be able to continue growing at this cruising speed.”

China has targeted economic growth of 7% this year, a reduction from last year’s 7.4% which was its slowest pace in nearly a quarter century.

via China’s Coming Education Crisis – China Real Time Report – WSJ.

21/03/2015

ChemChina close to Pirelli deal that would trigger buyout offer | Reuters

China National Chemical Corp (ChemChina) is close to becoming the biggest single shareholder in Pirelli (PECI.MI) in a deal that would trigger a 7 billion euro ($7.5 billion) buyout of the Italian tire company.

The Pirelli logo is pictured at their headquarters in Milan March 18, 2014. REUTERS/Alessandro Garofalo

Three sources familiar with the deal, which would be the latest in a string of Chinese investments in large Italian companies, said ChemChina was discussing a deal with Pirelli’s top shareholders to buy a holding company called Camfin, which owns 26 percent of Pirelli and is 50 percent owned by Russia’s Rosneft (ROSN.MM).

Without identifying the possible buyer, Camfin said it was in talks with an international industrial group to sell its Pirelli stake at 15 euros per share, valuing the tire group at 7.1 billion euros.

It said the stake would be transferred to a vehicle controlled by the new partner, after which a takeover offer for the rest the world’s fifth-largest tire maker would ensue.

If the offer succeeds, Pirelli will be delisted. The deal comes as Pirelli’s rivals Michelin (MICP.PA) and Continental (CONG.DE) look around for growth opportunities in Asia.

State-controlled ChemChina and Rosneft declined to comment.

Previous Chinese investments in Italy include State Grid Corp of China [STGRD.UL] buying into electricity grid company Terna (TRN.MI) and gas network operator Snam (SRG.MI).

Besides Rosneft, Camfin’s owners are a holding company comprising Pirelli chief Marco Tronchetti Provera as well as Italian banks Intesa Sanpaolo (ISP.MI) and UniCredit (CRDI.MI).

via ChemChina close to Pirelli deal that would trigger buyout offer | Reuters.

21/03/2015

Top South Korea, Japan, China envoys agree to work for a summit soon | Reuters

The foreign ministers of South Korea, Japan and China agreed on Saturday that a summit meeting of their leaders, on hold for nearly three years because of tensions over history and territory, should be held soon to mend the countries’ ties.

(L-R) Japanese Foreign Minister Fumio Kishida, South Korean Foreign Minister Yun Byung-se and Chinese Foreign Minister Wang Yi make a toast during a banquet at the South Korean Foreign Minister's residence in Seoul March 21, 2015. REUTERS-Kim Hong-Ji

The ministers were meeting, also for the first time in three years, in a bid to restore what had been a regular forum to discuss cooperation until it collapsed over what Seoul and Beijing saw as Japan’s reluctance to own up to its wartime past.

“Based on the accomplishments achieved through this meeting, the three ministers decided to continue their efforts to hold the trilateral summit at the earliest convenient time for the three countries,” a joint statement after the meeting said.

via Top South Korea, Japan, China envoys agree to work for a summit soon | Reuters.

14/03/2015

China’s greener energy efforts help global carbon emissions stall after almost 40 years of gains | South China Morning Post

China burned less coal and generated more electricity from renewable sources last year, which helped halt the rise in global carbon dioxide emissions in the energy sector.

China burned less coal last year and generated more electricity from renewable sources to help halt the global rise in  carbon dioxide emissions. Photo: Reuters

Emissions of carbon dioxide were flat at 32.3 billion tonnes last year, as they were in 2013, the International Energy Agency (IEA)  reported yesterday.

It ended steady gains over the past four decades except in years with an economic downturn.

“This is both a welcome surprise and a significant one,” IEA chief economist Fatih Birol said in a statement.

“This gives me even more hope that humankind will be able to work together to combat climate change, the most important threat facing us today.”

The IEA, which is based in France, and advises governments of developed nations, said the halt in emissions growth was linked to greener patterns of energy consumption in China – the top carbon emitter ahead of the United States – and in developed nations.

“In China, [last year] saw greater generation of electricity from renewable sources, such as hydropower, solar and wind, and less burning of coal,” it said.

via China’s greener energy efforts help global carbon emissions stall after almost 40 years of gains | South China Morning Post.

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