ENERGY & INDUSTRIALS
Harbin Electric to buy four gas turbines from General Electric
Harbin Electric Co Ltd will buy four gas turbines from General Electric (GE), including two that incorporate new efficient technology, for use in providing heat to northern China, the two companies said. Harbin Electric will purchase the turbines before the end of 2013, according to the terms of a memorandum of understanding signed by the two sides in Beijing.
| SBR HR Lunch Briefing
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Welcome to join us at one of Shanghai’s award-winning restaurants, meet other senior executives, and listen to a highly instructive speaker on an important and useful topic.
DATE: Tuesday, 28 June 2011, 11:30am - 2:00pm
SPEAKER: Yoav Chernitz, CEO, John Bryce Training China
TOPIC: Ensuring Staff Training Adds to the Bottom Line
COST: RMB420 per person (three-course lunch and drinks incl.)
For more information click here or contact us directly: +86 21 5403 2211 x12 or rsvp@mk-media.net
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Water management firms in US and France eye China
France-based Suez Environment (Suez) and US-based General Electric Co (GE) recently signed an agreement to jointly develop new urban water management technologies, and the first projects will focus on cities in China and France, according to China Securities Journal. Suez Chief Executive Jean-Louis Chaussade said the company believes that the goal of sustainable development and recycling economy in the recent 12th Five Year Plan fit its business and corporate ethics.
FINANCIAL SERVICES
PayPal to end partnership with Alibaba
Beginning 3 August, Ebay Inc’s Paypal online payment system will end its partnership with Alibaba Group’s Aliexpress.com, an international wholesale platform for China’s domestic vendors to supply orders to foreign buyers. Aliexpress.com started its partnership with PayPal in April 2010 to use the service as one of its international online payment methods. Some sources cite Aliexpress.com’s rapid global development as the deal breaker, as it may affect eBay’s business in China.
South Korea’s Woori agrees to collaborate with Chinese Bank
Woori Finance Holdings Co said it has agreed to a strategic tie-up with China's Bank of Communications Co, marking the latest effort by a South Korean lender to boost its presence in China. Woori, South Korea’s largest lender by assets, said the tie-up will help it take advantage of Bank of Communications' strong presence in China. The strategic alliance will include cross-selling of products, global co-operation and sharing of information among the two lenders' subsidiaries.
HEALTHCARE & PHARMACEUTICALS
Chinese drug maker to launch JV with Pfizer
Chinese pharmaceutical manufacturer Zhejiang Hisun Pharmaceutical Co Ltd said that it has signed a letter of intent with the US drug maker Pfizer on launching a pharmaceutical JV. The company didn't specify the details of the project.
Novo boosts China funds
Novo Nordisk A/S will boost investment in China to preserve its dominance in the Chinese market after rival Sanofi SA made a new foray amid an effort by the government to improve health services. Novo produces two-thirds of the insulin used in China, where the latest study shows that one in ten people has diabetes.
INTERNATIONAL TRADE & INVESTMENT
China and Italy sign deals worth USD3.3bn
Chinese Vice-President Xi Jinping and Italian Prime Minister Silvio Berlusconi witnessed the signing of a series of deals worth USD3.3bn. Among the 16 agreements, 14 were signed by China Development Bank, China National Petroleum Cooperation, Huawei, Guangzhou Auto and other Chinese companies with Italian companies, covering areas including telecommunications, medicine, finance, automobiles and new energy. The other two agreements were on scientific research cooperation and innovation.
China approves Russian fertiliser producers’ merger
China National Gold Group Corp, the state-owned company that controls the nation's largest gold deposits, wants to invest in projects in Africa as it expects bullion to trade near record levels for the next three years. The aim is large-scale mines with good potential in countries that have close ties with China and domestic stability. Gold prices will fluctuate at historically high levels for another three years, President Sun Zhaoxue said.
Romanian Prime Minister welcomes more Chinese investments
Romanian Prime Minister Emil Boc said he would like to see more Chinese entrepreneurs investing in his country. The time has come for the two nations to further promote bilateral trade, said Boc, who called on more Chinese entrepreneurs to invest in Romania's infrastructure, energy, agriculture and environmental protection sectors. Romania has, for the first time, a public-private partnership law, which allows foreign investments in Romania and provides a number of competitive advantages, he said, citing the country's flat tax rate and the policy of not taxing profits as reinvestment.
Traders bet against Harbin Electric
Short sellers are preying on China's Harbin Electric Inc like never before, betting against a Morgan Stanley-backed hedge fund in a buyout that would generate the biggest windfall of any acquisition in the world. Bearish bets against the US-traded maker of electric motors have almost tripled to a record 28% of shares since Chief Executive Officer Yang Tianfu offered to acquire Harbin Electric in a USD541m buyout in October, according to data compiled by Bloomberg and Data Explorers.
MANUFACTURING & AUTOMOTIVE
China’s Lenovo to acquire German PC company
Chinese PC maker Lenovo Group has announced plans to acquire a 37% stake in Medion AG, a PC company in Germany, for EUR231m (USD388m). This move marks another integration measure of Lenovo since its acquisition of Japan’s NEC earlier this year. The group reportedly hopes to soon further raise the stake to 80%. This transaction is reportedly the largest acquisition for Lenovo since it acquired the PC business of IBM six years ago.
China eyes further helicopter co-op with Russia
With large market demands for helicopters, China welcomes further technical cooperation with Russia in that regard, Chinese Vice Premier Wang Qishan said. Wang said that Russia enjoys unique advantages in helicopter research and development as well as in manufacturing, and the two nations have great potential for cooperation in the field.
China plans USD100m solar plants in Africa
China, the world's biggest maker of solar panels, plans to build power projects using the devices in 40 African nations, aiming to cut the continent's reliance on fossil fuels and open a new market for Chinese manufacturers. The programme, which may require about USD100m in investment, will use competitive bidding and Chinese-made panels, according to Sun Guangbin, secretary-general of photovoltaic products at the China Chamber of Commerce for Import & Export of Machinery and Electronic Products.
Designed in Japan, but made in China
According to Dai Hakozaki, the deputy director general of the Japan External Trade Organization Beijing, China is likely to see a new wave of Japanese companies transferring their domestic production lines to the country, as a result of the devastating earthquake and tsunami in March. Hakozaki said, in the light of China's rapidly rising domestic consumption, the country will continue to be the most attractive destination for Japanese outbound direct investment. Moreover, that will play a part in promoting Japan's economic recovery.
GM aims to buy back 1% of Chinese venture
General Motors Co (GM), the biggest overseas automaker in China, said it intends to exercise an option to buy back a 1% stake in its main car venture in the country to make it an equally held unit with its partner. GM sold a 1% stake in Shanghai General Motors Co to its partner SAIC Motor Corp in 2010, reducing its holding to 49%.
Huangzhou Iveco to manufacture Fiat gearboxes
Fiat SpA, Europe's sixth-largest automaker by market share, will locally produce its gearboxes in China in part to gain a foothold in the world's biggest automobile market. The gearboxes will be produced in partnership with the Italian carmaker's Chinese partners, Guangzhou Automobile Group Co Ltd and Hangzhou Advance Gearbox Group Co Ltd, according to Hangzhou Advance's statement to the Shanghai Stock Exchange. The deal includes a joint investment of USD350m.
Mainland company steps in to save Saab
Pangda, a mainland car dealer, has signed a HKD1.24bn (USD161m) pact with Dutch firm Spyker Cars to keep its Saab brand on life support. However, while the deal illustrates the value placed by Chinese companies on European brands, it is highly unlikely that the government will approve such an alliance when it works against China's policies to work towards fewer, stronger national brands according to William Russo, an industry veteran who runs Beijing-based consultancy Synergistics.
Volvo recalls 2,337 vehicles in China
Volvo began recalling 2,337 vehicles in China to fix problems that could pose safety risks, China's quality watchdog said. The recall includes 280 imported XC60 vehicles and 318 imported S60 autos manufactured between 20 Jan and 28 Jan 2011, as well as 1,739 imported XC90 vehicles manufactured between 29 Jan and 16 Aug 2010. Volvo said some faulty components of the affected cars might cause fuel leaks, and even might develop into a fire in worst-case scenarios.
MEDIA, ENTERTAINMENT & ADVERTISING
China’s Sina to launch English version of Weibo
A spokesman from Sina Corp said the company will kick off an English version of its microblog by the end of the year for overseas users. The Chinese-language Weibo product was launched about two years ago and claims more than 140 million users. More than 10% of Weibo’s users are based overseas.
PROPERTY & CONSTRUCTION
Chinese company wins bid to design new bridge over Panama Canal
The Chinese infrastructure giant, the China Communication Construction Company (CCCC), was awarded a contract to design a third bridge over the Panama Canal, the Panama Canal Authority (ACP) said. The ACP said in a statement that the Chinese company has presented the lowest budget worth USD4.662m and won the bid over five other competing companies. The bid was presented in partnership with engineering consultancy firm Louis Berger Group, the ACP said.
Four east China ports ally with ROK’s largest port
Four ports in east China's Shandong Province signed a strategic alliance with the largest port of the Republic of Korea (ROK). Aiming to build a shipping and logistics center in north east Asia, the alliance is jointly formed by Shandong's Qingdao Port, Yantai Port, Rizhao Port, Weihai Port and the ROK's Port of Busan. The five ports will mutually provide effective services for freight and passengers and promote transit transport.
Mainland immigrants demanding 29% of all new homes
The leading global real estate services company, Colliers International, announced that Jameson House and Symphony Place of the Vancouver Chapter will be entering the Chinese market. The Managing Director of Colliers International for North Asia, Alan Liu, expressed that with rising affluence and income level as well as comfort with using property investments as a means to accumulate wealth, local Chinese investors' acquisition of overseas residential property has emerged rapidly as a very visible trend and is making significant impact on many 'world' cities.
RETAIL & FMCG
Chinese company Bright Food Group wants to invest in European businesses
Wang Zong Nan, the chairman of Bright Food Group, said the biggest food company in China is looking to invest in European companies in an effort to establish an international brand and sales networks. Experts are predicting a surge of similar overseas takeovers by Chinese companies over the next decade. Chinese companies' investment in European businesses, which totaled just USD853m in 2003-2005, surged to USD43.9bn in 2008-2010, according to Dealogic, a London consultancy.
Prada aims for slice of mainland market
Italian companies are joining the race for a slice of China's lucrative consumer market as Hong Kong awaits the USD2bn public share offering from Milan-based fashion house Prada, which will be marketed to investors this week. Prada said it intended to open 30 directly operated stores on the mainland by 2014.
TECHNOLOGY & TELECOMMUNICATIONS
ABB, Schneider bid for China cleantech firm for up to USD700m
Engineering companies, Switzerland’s ABB Ltd and France’s Schneider Electric, are among second-round bidders for Beijing Leader & Harvest Technologies Co. The private equity-owned China cleantech asset has drawn strong interest from around six global and local buyers in the second round. The sale of Beijing Leader, which is based in Beijing, offers global multinationals a rare opportunity to acquire an entire company in China.
Hon Hai sets sights on being a hi-tech player
Hon Hai Precision Industry, Apple's biggest manufacturing partner, is seeking to transform itself into a technology firm and leave behind the low-margin contract business that has made it one of the world's biggest makers of other firms' products, with revenues expected to top USD101bn this year. The company's chairman, Terry Gou, said Hon Hai was not going to build its own brand, but would instead look to grow through technological prowess.
JVs exempted from online mapping ban
Foreign companies are effectively banned from providing Internet mapping services in China, but JVs are exempted, according to a notice issued by the State Bureau of Surveying and Mapping. The notice cited an amended regulation on overseas organisations and individuals that offer online mapping services, in effect since 27 April 2011.
Shenzhen seeks Danish investment
Officials and experts from Shenzhen, China, attended the Shenzhen Economic and Trade Cooperation conference in Copenhagen, Denmark, to boost trade and attract investments in high technology, new energy and other emerging industries. Shenzhen expects to experience rapid development in these emerging industries and hopes to attract more foreign enterprises, especially Danish companies, according to Gao Lin, deputy director-general of Shenzhen Science, Industry, Trade and Information Technology Commission.
TRAVEL & HOSPITALITY
Washington DC courts Chinese tourists
The capital region of the United States may not be the hottest destination for Chinese tourists, but the launch of a new Chinese-language website dedicated to the region may change this. The site makes it easier for Chinese people to explore the region, comprising the United States' capital city Washington DC and the nearby states of Virginia and Maryland.
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