BUSINESS >> Companies

Vanguard establishes first subsidiary on Chinese mainland

Vanguard, one of the world's largest investment companies, established its first wholly-owned subsidiary on the Chinese mainland Thursday.
Source: Xinhua | 2017/5/26 7:46:21

ABC loans Volkswagen 500 mln euros

The Agricultural Bank of China (ABC), one of the country's largest lenders, said Thursday it had issued a 500 million euro (560 million US dollars) of loan to German car giant Volkswagen Group.
Source: Xinhua | 2017/5/26 7:45:30

Alibaba’s Alipay launches first non-yuan transaction app in HK

Chinese online and mobile payment platform Alipay, onwed by ecommerce giant Alibaba Group, on Wednesday launched in Hong Kong its first app to handle transactions not denominated in the Chinese yuan, moving closer to its ambition of widening currency payment options.
Source: Reuters | 2017/5/26 5:03:40

Chinese firms buy condom maker Down Under

Australian healthcare manufacturer Ansell announced the sale of its condom business on Thursday, in a lucrative deal with two companies from China.
Source: Xinhua | 2017/5/25 22:33:40

Lenovo returns to profit despite difficult conditions in PC sector

Lenovo Group, the world’s largest personal computer (PC) maker, on Thursday said that it returned to profit in the year ended on March 31, as its PC shipments fell at a slower rate than the overall market even though consumer demand continued to ease.
Source: Reuters | 2017/5/25 22:33:39

Coal exec ‘under investigation’

The president of China Coal Energy Co Gao Jianjun, is being investigated for suspected corruption, the party's anti-graft arm said on Thursday.
Source: Agencies-Global Times | 2017/5/25 22:23:39

CSRC levies fines on securities, futures brokers for dealings with Citadel unit

The China Securities Regulatory Commission (CSRC) has fined three securities companies and one futures brokerage more than 400 million yuan ($58.19 million) in total for violating regulations through their dealings with Citadel (Shanghai) Trading, domestic media reported.
Source: Global Times | 2017/5/25 22:03:39

New services, deals

Emirates announced Monday that it will provide all-A380 service for its two daily routes departing from Beijing and Shanghai to Dubai, starting from July 1. Emirates adopted the A380 for one of its routes from Beijing to Dubai as early as 2010. In April 2011, it deployed the aircraft on one of its routes from Shanghai to Dubai.
Source: Global Times | 2017/5/25 18:43:40

Airline alliance helps Chinese carriers extend reach around world

Shanghai-based Juneyao Airlines announced Tuesday that it has become a Star Alliance “Connecting Partner,” in a development that the airline hopes will help advance its global expansion plans.
Source: Global Times | 2017/5/25 18:43:40

Sinopec gas storage site

Sinopec said on Wednesday that it has started building China's largest natural gas storage and logistics center with the capacity to store up to 10 billion cubic meters of gas in Central China's Henan Province.
Source: Agencies-Global Times | 2017/5/24 22:38:40

Linglong Tire considers Central Europe plant

Shandong Linglong Tire is close to deciding on the site of an expected 500 million euro ($558.70 million) plant in central Europe, a partner of the company said on Wednesday.
Source: Reuters-Global Times | 2017/5/24 22:38:39

Export-Import loan

The Export-Import Bank of China said Wednesday that it had reached a strategic cooperation agreement with East China’s Fujian Province under which the bank will extend credit of at least 350 billion yuan ($51 billion) during 2017-21.
Source: Global Times - Xinhua | 2017/5/24 22:33:40

CNPC-CHALCO deal

China National Petroleum Corp (CNPC) and Aluminum Corp of China (CHALCO) signed a strategic cooperation framework agreement and unveiled their co-funded company on Tuesday, according to a statement posted on CNPC’s website on Wednesday.
Source: Global Times - Xinhua | 2017/5/24 22:33:39

Gezhouba Group wins Nepali power project

Nepal has awarded a contract to develop the Budhigandaki Hydroelectric Project to China Gezhouba Group Corp, a cabinet minister said.
Source: Xinhua | 2017/5/24 22:33:39

ICBC lists three bond issues in Dubai amid growth in region

Nasdaq Dubai said Wednesday in an e-mailed statement that it welcomes the listing of three bond issues by Industrial and Commercial Bank of China’s (ICBC) Dubai branch, which is located in the Dubai banking free zone known as DIFC.
Source: Xinhua | 2017/5/24 22:28:40

Videos lift Momo to 421% rise in revenue as strategic move pays off

Buoyed by robust growth in live-streaming video services, the revenue of social media platform Momo jumped 421 percent year-on-year to $265.2 million in the first quarter of 2017.
Source: Global Times | 2017/5/24 22:28:39

Geely buys into Malaysia’s Proton

Chinese automaker Zhejiang Geely Holding Group Co said Wednesday that it will buy a 49.9 percent stake in Malaysia-based carmaker Proton from DRB-Hicom, and it will also take a 51 percent stake in Proton’s luxury car brand, UK-based Lotus Group.
Source: Global Times | 2017/5/24 22:28:39

South Asian country’s plan for electric vehicles likely to benefit domestic manufacturers

India’s ambitious plan to push electric vehicles at the expense of other technologies could benefit Chinese carmakers seeking to enter the market, but is worrying established automakers in the country who have so far focused on making hybrid models. India’s most influential government think tank unveiled a policy blueprint in early May aimed at electrifying all vehicles in the country by 2032, in a move that is catching the attention of carmakers that are already investing in electric technology in China such as BYD and SAIC. The May 12 report by Niti Aayog, the planning body headed by ­Indian Prime Minister Narendra Modi, recommends lower taxes and loan interest rates on electric vehicles while capping sales of petrol and diesel cars, seen as a radical shift in policy. India also plans to impose higher taxes on hybrid vehicles compared with electric, under a new unified tax regime set to come into effect from July 1, upsetting carmakers like Maruti Suzuki and Toyota Motor. The prospect of India aggressively promoting electric vehicles was a “big opportunity,” a source close to Chinese automaker SAIC told Reuters. “For a newcomer, this is a good chance to establish a modern, innovative brand image,” the source said, Still, the company would need more clarity on policy before deciding whether to launch electric vehicles in India, the source said. Earlier this year SAIC set up a local unit called MG Motor which is finalizing plans to buy a car manufacturing plant in western India. A spokesman at SAIC did not comment specifically on the company’s India plans. Warren Buffett-backed BYD already builds electric buses in the country, while rival Chongqing Changan has said it may enter India by 2020. BYD said in a statement the company would have “a lot more confidence” to engage in the Indian market if the government supported the proposed policy. The company said it would look at increasing its investment in India but did not give details on how it would expand its business and market share. High costs While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy. If so, India would be following similar moves by China, which has been aggressively pushing clean vehicle technologies. But emulating China’s success could be tough. Electric vehicles are expensive due to high battery costs, and carmakers say a lack of charging stations in India could make the whole proposition inviable. The proposed policy focuses on electric vehicles, and is likely to also include plug-in hybrids. But it overlooks conventional hybrid models already sold in India, such as Toyota’s Camry sedan, Honda Motor’s Accord sedan and so-called mild hybrids built by Maruti Suzuki. Hybrids combine fossil fuel and electric power, with mild hybrids making less use of the latter. In doubling down on electric power India would be shifting away from its previous policy that supported hybrid and electric technology. That could delay investments in India, expected to be the world’s third-largest passenger car market within the next decade, according to industry executives and analysts. “All these policy changes will affect future products and investments,” said Puneet Gupta, South Asia manager at consultant IHS Markit, adding that most carmakers would need to rethink product launches, especially of hybrids. Economic gap Mahindra & Mahindra is the only electric carmaker in India but has struggled to ramp up sales, blaming low buyer interest and insufficient infrastructure. Pawan Goenka, managing director at Mahindra, said the company was working with the government and other private players to set up charging stations in India. Mahindra was also focusing on developing electric cars and taxis, Goenka said. The cost of setting up a car charging station in India ranges from $500 to $25,000, depending on the charging speed, according to a 2016 report by online journal IOPscience. While the proposed policy suggests setting up battery swapping stations and using tax revenues from sales of petrol and diesel vehicles to set up charging stations, it does not specify the investment needed or whether the government would contribute. “For full electric vehicles, the economic gap remains huge and the charging infrastructure needed does not exist,” said a spokesman at Tata Motors. The company makes electric buses and is working on developing electric and hybrid cars. Delayed plans Most automakers have focused on bringing in hybrid models that are seen as a stepping stone to electrification. Toyota recently launched its luxury hybrid brand Prius in India, while Hyundai Motor plans to debut its Ioniq hybrid sedan in 2018. Maruti’s parent Suzuki Motor, along with Toshiba and Denso, plans to invest 20 billion yen ($180 million) to set up a lithium ion battery plant in India that would support Maruti’s plan to build more hybrids. But the apparent sharp shift in policymakers’ thinking in favor of electrification is forcing automakers like Toyota and Nissan Motor to seek more clarity before finalizing future products for India, while Hyundai may delay new launches. Toyota, the world’s No.2 carmaker by sales, had planned to have a hybrid variant for all its vehicles in India, but the company’s future launches would now depend on the new policy, said Shekar Viswanathan, vice chairman of its Indian subsidiary. Nissan, which plans to launch a hybrid SUV later in 2017, said in a statement it was waiting for more clarity before deciding whether to bring electric cars to India. A plan by Hyundai to launch at least three hybrid cars in India in 2019-20 would likely to be delayed, said a source. Hyundai did not comment on queries related to delays. “If the government will be aggressive on electric vehicles and not support other technologies, companies will need to rethink investments,” said an executive with an Asian carmaker.
Source: Reuters | 2017/5/24 18:42:39