Archive for February, 2015

10/02/2015

Dalian Wanda to buy Swiss sports firm for $1.2 billion amid entertainment push | Reuters

China’s Dalian Wanda Group Co signed a 1.05 billion euros ($1.2 billion/ £787 million) deal to buy Swiss sports marketing firm Infront Sports & Media AG, and said it plans to acquire more overseas companies this year to deepen its push into sports and entertainment.

A man walks in front of an entrance to a Wanda Department Store in Wuhan, Hubei province, in this December 23, 2014 file photo. REUTERS/Stringer/Files

The acquisition will see Wanda Group, China’s largest property developer which also controls the country’s largest cinema chain, take a 68.2 percent stake in Infront, which focuses on distributing media rights for broadcasting sports events including the football World Cup and several Olympic winter sports.

Three unidentified Chinese and global investors will take the remaining minority stake, Wanda executives told Reuters. Infront generated about 800 million euros in revenue last year.

“This purchase allows Wanda to become a global leader in the sports industry in a single bound,” Dalian Wanda Chairman Wang Jianlin told reporters after a deal signing ceremony in Beijing.

“In addition to Infront, Wanda will buy at least two cultural companies this year,” he added, without giving details.

via Dalian Wanda to buy Swiss sports firm for $1.2 billion amid entertainment push | Reuters.

06/02/2015

China seizes 30,000 in 2014 for food, drug crimes – Xinhua | English.news.cn

Chinese police apprehended nearly 30,000 in connection with food and drug safety offences in 2014, closing 35,000 illegal factories and workshops, the Ministry of Public Security revealed Friday.

Food safety is still a serious problem in China, despite of some improvement, the ministry’s Hua Jingfeng told a press conference.

Hua noted that cases related to baby formula and “gutter oil” have decreased, but those concerning other substandard foods have increased.

Violations by big companies have dropped substantially while cases involving small companies and workshops increased, he said.

Some new crimes have emerged, including injecting Epinephrine Hydrochloride into pork which makes the pork look fresh and adds weight.

Last month, police arrested more than 110 suspects for selling pork from diseased pigs, confiscating over 1,000 tons of contaminated pork and 48 tons of cooking oil processed from the pork and other unclean meat.

via China seizes 30,000 in 2014 for food, drug crimes – Xinhua | English.news.cn.

06/02/2015

Top Chinese Company Bosses Try to Atone After Bribery Allegations – China Real Time Report – WSJ

Acts of contrition allow disciples of the Roman Catholic Church to atone for their sins. Something similar may be saving souls in China’s Communist Party.

Mobile phone company China Unicom acknowledged findings published Thursday by the party’s official anti-graft agency that salacious acts of corruption gushed from its corporate suite, including abuse of power and bribery with sex as the currency.

Similar allegations have toppled government officials and corporate executives across China in the past two years, reflecting President Xi Jinping’s pledge that the party faithful will “remain resolute in wiping out corruption and show zero tolerance for it.”

Yet no one appears to be facing public reprimand at Unicom and a clutch of other state-run companies and government bureaus that the party this week accused of party discipline problems.

It’s unclear whether the fact no one is being publicly fingered for the problems atop key state-run companies suggests the party is satisfied the public shaming is enough punishment or whether it’s lightening its approach to violations. But what’s clear is the officials running the businesses have spent time in the party’s version of a confessional booth

The fresh allegations against powerful state-run organizations were published late Thursday by the party’s Central Commission for Discipline Inspection, which it said were the result of a round of investigations that began in November. Similar probes of state-run companies and government bureaus have continued regularly since Mr. Xi rose to power at the 18th Party Congress in late 2012. The commission last month said that an inspection of all top state-owned enterprises will be among its priorities for this year.

In addition to catalogue of problems at Unicom, the inspections found top officials at coal giant China Shenhua Energy Co. abused market power to gain “black gold,” leaders of China State Shipbuilding Corp. did illegal business and relatives of top cadres engaged in similar malfeasance at carmaker Dongfang Motor Corp. As well, the inspectors said they unearthed buying and selling of positions at power generator China Huadian Corp., as well as poor controls that caused loss of state secrets. The inspectors likewise cited discipline failings at state broadcaster China Radio International.

The anti-graft agency’s statements on each organization quoted their Communist Party leaders, including Unicom Chairman Chang Xiaobing, expressing contrition about failings at their groups and pledging to rectify the problems. The statements about the individual companies each include photos of top company officers in boardrooms discussing the findings and meeting with employees to address the problems. The statements quote officials pledging to honor Mr. Xi’s principles of party discipline.

via Top Chinese Company Bosses Try to Atone After Bribery Allegations – China Real Time Report – WSJ.

06/02/2015

Companies set to back huge India solar expansion | Reuters

India could start installing 20,000 megawatts of solar power capacity as early as April after companies pledged to support the government’s drive for clean energy, an official told Reuters.

A worker cleans photovoltaic solar panels inside a solar power plant at Raisan village near Gandhinagar, in Gujarat, February 11, 2014. REUTERS/Amit Dave/Files

Details of the plan, which has drawn commitments from U.S., German and Chinese companies, will be announced on Friday, said Upendra Tripathy, secretary of the Ministry of New and Renewable Energy.

“We have got commitments from very established industry, both foreign and domestic for next year,” he said in an interview at his office.

Foreign companies will be allowed to decide where they manufacture the required equipment, he said.

via Companies set to back huge India solar expansion | Reuters.

06/02/2015

Record spending spurs race by governments for Chinese tourist dollars | Reuters

Embassies are re-writing visa rules and governments are hammering out aviation pacts as record spending by Chinese travelers sets off a race around the world for a share of the Chinese tourist dollar.

Chinese spending on international travel in 2014 rose to $165 billion from $129 billion in 2013, the biggest percentage increase in two years, according to data released by the State Administration of Foreign Exchange last week.

Chinese disposable incomes have been steadily rising and would-be travelers got an additional boost in the past year from favorable foreign exchange rates, with the yuan appreciating more than 10 percent against the yen and the Australian dollar. The gains versus the euro have been even greater, at more than 14 percent, and the yuan set a record against the single currency last month.

Governments near and far are keen to get their countries onto Chinese itineraries. In November, the United States signed a landmark deal with China extending one-year visas issued to Chinese travelers to up to a decade. This year Malaysia and Indonesia are planning visa exemptions, while Thailand is considering exempting visa fees, which were briefly suspended last year. Australia in January signed an agreement with China allowing more passenger flights from Beijing, Shanghai and Guangzhou with immediate effect.

Air traffic data for China’s big airlines confirms a rising preference for overseas travel in the world’s most populous nation. Air China’s international routes recorded 14.6 percent growth in 2014 in revenue passenger kilometers (RPKs), a gauge of traffic, versus 6.1 percent for domestic routes, Reuters calculations show. China Southern Airlines‘ international RPK growth was 20.2 percent versus 10.0 percent domestically. China Eastern Airlines posted international RPK growth of 4.4 percent.

via Record spending spurs race by governments for Chinese tourist dollars | Reuters.

06/02/2015

Thailand boosts military ties with China amid U.S. spat | Reuters

China and Thailand agreed on Friday to boost military ties over the next five years, from increasing intelligence sharing to fighting transnational crime, as the ruling junta seeks to counterbalance the country’s alliance with Washington.

China's Defence Minister Chang Wanquan, accompanied by Thailand's Deputy Prime Minister and Defence Minister Prawit Wongsuwan (L), reviews a guard of honour during his visit to Thailand, at the Defence Ministry in Bangkok February 6, 2015. REUTERS/Chaiwat Subprasom

The agreement came during a two-day visit by China’s Defence Minister Chang Wanquan to Bangkok, and as Thailand’s military government looks to cultivate Beijing’s support amid Western unease over a delayed return to democracy.

“China has agreed to help Thailand increase protection of its own country and advise on technology to increase Thailand’s national security,” Thai Defence Minister General Prawit Wongsuwan told reporters.

“China will not intervene in Thailand’s politics but will give political support and help maintain relationships at all levels. This is China’s policy.”

via Thailand boosts military ties with China amid U.S. spat | Reuters.

05/02/2015

BBC News – Fresh protest against Delhi church attacks

Police in the Indian capital, Delhi, have detained dozens of people who were protesting against recent attacks on churches in the city.

Indian Christians hold placards protesting against recent attacks on churches in the Indian capital as they assemble outside the Sacred Heart Church in New Delhi, India, Thursday, Feb. 5, 2015

There have been five attacks on churches in Delhi since December.

Christian groups accuse hardline Hindus of carrying out the attacks, but police say there is little evidence for this.

Some protesters have accused India’s Hindu nationalist BJP government of not doing enough to reassure the city’s Christian minority.

Thursday’s protest came after a church in Delhi was vandalised on Monday, and an unexplained fire gutted another in December.

Protesters carrying placards reading “Enough is Enough, What are police doing?” gathered outside the city’s main Catholic Sacred Heart Cathedral in central New Delhi.

Police said the protesters were detained as they were marching towards the residence of Home Minister Rajnath Singh in a high-security area where protests are not allowed.

via BBC News – Fresh protest against Delhi church attacks.

05/02/2015

Why Oil-Hungry China Isn’t Reaping Benefits From Low Prices – China Real Time Report – WSJ

China – which gets 60% of its oil from abroad — is on its way to becoming the world’s largest petroleum importer, and is already there by some measures. So in theory it stands to be a huge beneficiary of plummeting oil prices.

However, as The Wall Street Journal reports, the benefits of cheap oil for several major economies are far less clear, as governments from Europe to Japan battle fears that falling prices—in part a result of cheap energy—will deter spending by consumers and new investment by companies.

In China, cheap oil hasn’t been nearly the boon many may have thought. That is the result of several factors.

The government controls prices, meaning the drops for Chinese businesses and consumers lag those of international oil markets. China’s central government has raised fuel taxes, offsetting prices declines. Both factors add up: The government-maximum price in Beijing for basic-quality gas comes out to roughly $3.50 a gallon, once currency conversions and other factors are weighed. Compare that to the U.S., where that same gallon costs about $2.07.

Then there are the structural issues in China’s economy like overcapacity that low prices can’t fix.

“If you look at the lower oil price, it’s true China is a net importer of oil so in theory it should be beneficial,” said Vincent Chan, a research analyst at Credit Suisse CSGN.VX +0.05%. “But at the same time you have other issues like some of the structural issues that are more important in China.”

The bottom line for China: While consumers and some industries have gotten a boost from lower oil prices, the benefits have been pared by the central government’s preference for price stability. Similarly across Asia, governments have used low oil prices to unwind complicated and costly subsidies, which in recent years have kept prices at the pump artificially low for many Asian consumers.

via Why Oil-Hungry China Isn’t Reaping Benefits From Low Prices – China Real Time Report – WSJ.

05/02/2015

Falling oil prices pull India’s budget out of the fire | Reuters

Falling oil prices have been a major windfall for India: Just weeks ago it faced failing to meet fiscal deficit targets, but can now expect a budget that not only hits its targets, but also provides extra cash to support reform.

India's Finance Minister Arun Jaitley gestures during the session 'India's Next Decade' in the Swiss mountain resort of Davos January 23, 2015. REUTERS/Ruben Sprich

The coming budget for fiscal 2015/16 (April-March), which will be unveiled on Feb. 28, is widely seen as a test of Prime Minister Narendra Modi‘s ability to lead economic reform.

Fortunately for Modi, the economic climate has handed him a chance to pass that test with flying colours: Budget planners are optimistic that he will set Asia’s third-largest economy on a path for growth of 7 percent to 8 percent over the next two years.

“The situation is far better now than in December,” said one finance ministry official, who spoke to Reuters despite a ban on contact with the media in the secrecy-shrouded run-up to the presentation of the annual budget. “The budget will deliver on Modi’s promise of better days for the economy.”

The halving of global oil prices since mid-2014 has allowed the Modi government to raise diesel and petrol fuel taxes and cut diesel prices by 25-30 percent – a windfall gain for households as well as businesses, and dampening inflationary pressures in the economy.

via Falling oil prices pull India’s budget out of the fire | Reuters.

05/02/2015

Alibaba’s Ant Financial to buy 25 percent of India’s One97 | Reuters

Ant Financial Services Group, an affiliate of China’s Alibaba Group Holding Ltd (BABA.N), has agreed to buy 25 percent of Indian payment services provider One97 Communications, tapping into the country’s smartphone and online industry boom.


Embed from Getty Images

The companies did not provide the value of the deal, but a person with knowledge of the matter called the investment a precursor to One97 listing on the stock exchange, and said the stake was worth more than $500 million.

The deal values One97 at more than $2 billion, making it one of the most-valuable start ups in the country. One97 runs Paytm, an online platform through which users can shop or pay utility bills, whereas Ant runs Paytm’s Chinese peer Alipay.

Alibaba spokeswoman Teresa Li and One97 founder Vijay Shekhar Sharma declined to disclose the value. Sharma told Reuters that Ant would buy new shares in his company.

Paytm has benefited from the spread of affordable handsets and internet connectivity which has turned India into the fastest-growing smartphone market in the Asia-Pacific region, according to researcher IDC.

via Alibaba’s Ant Financial to buy 25 percent of India’s One97 | Reuters.

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