|Top 10 Daily Business China News Alerts 04/14/2015|
|by Tom McGregor||Mon, Apr 13, 2015, 08:47 PM|
Stay Updated on Real China Business News at Real Time
1. World Bank misses the point about China
…a significant slowdown in China, though unlikely, would exert large spillovers, particularly on commodity exporters. In China, a disorderly unwinding of real and financial vulnerabilities could trigger a sharp slowdown in investment and output growth. A steep decline in property prices could force developers and banks to deleverage quickly, leading to a sharp contraction in real estate investment. A disorderly unwinding of local government financing could trigger a sharp slowdown in infrastructure investment. A wave of bankruptcies in primary and heavy industries suffering from overcapacity could seriously derail fixed investment in otherwise healthy industrial sectors. And excessive risk taking in the shadow-banking system could eventually force a rapid cutback in liquidity and credit, deeply curtailing investment.
2. China's Kandi May Go Public, Pursue Tesla Turf In EVs
Who'll corner China's rising electric car market? Kandi Technologies Group (NASDAQ:KNDI) is making a run for it in a plan to seek capital, and is also showing signs it might grow to be a competitor to Tesla Motors (NASDAQ:TSLA) in the luxury segment there. Despite Tesla's problems with China sales, it already outstrips Kandi's EV joint venture in electric-car revenue within the country.
1. China's Tencent Hits $200 Billion Market Cap
Beijing: China's Tencent Holdings Ltd for the first time hit a market cap of more than $200 billion on Monday, making it more valuable than US tech firms like Amazon.com Inc, IBM Corp and Oracle Corp. The country's biggest social networking and online entertainment firm rose 5.38 per cent to close at HK$170.50 ($22) in trading in Hong Kong, giving it a market valuation of $206 billion. This is higher than Oracle's $190 billion, Amazon's $178 billion and IBM's $161 billion.
2. Andhra Pradesh Chief Minister Chandrababu Naidu Meets Top Executives on China Visit
Hyderabad: Andhra Pradesh government signed a Government-to-Business (G2B) Memorandum of Understanding (MoU) with the China Civil Engineering Construction Corporation (CCECC) during the second day of Andhra Pradesh Chief Minister N Chandrababu Naidu's ongoing visit to China. The business scope extends from international contracting for railway construction to different areas of civil engineering like design and consultancy, real estate development, trading, industrial investment and hotel management, according to an official Andhra Pradesh government release issued today.
3. China March Exports Shrink 15%, Badly Miss Expectations
China's export sales contracted 15 percent in March, a shock outcome that deepens concern about sputtering Chinese economic growth. The tumble in exports - the worst in about a year - compared with expectations for a 12 percent rise and could heighten worries about how a rising yuan <CNY=CFXS> has hurt demand for Chinese goods and services abroad, analysts said.
4. Huawei aims high with innovation, entrepreneurship
From a company on a shoestring budget at the time of its founding to a world renowned telecommunications giant, Huawei Technologies proves that commitment to entrepreneurship and innovation pays off. "The only reason why Huawei exists and flourishes is its aim to better serve customers," said rotating CEO Hu Houkun. "The only way for Huawei to win the market's trust and respect is through diligence," Hu said.
5. China limits mainland travelers to Hong Kong
Hong Kong • Chinese authorities curbed some travel from mainland China to Hong Kong on Monday to cool tensions over a growing influx of shoppers that has angered residents of the Asian financial hub. The public security bureau in neighboring Shenzhen will stop issuing multiple visit passes to people who live in the border city and instead issue only once-a-week travel passes, according to the official Xinhua News Agency.
6. Delta's Long-Term Focus on China
After rapidly expanding its presence in Seattle, Delta now plans to set up an international hub in China, to complement its recent partnership deal with China Eastern Airlines and code-share agreement with Shanghai Airlines (a wholly owned subsidiary of China Eastern). As part of its long-term strategy, Delta envisions a hub in Shanghai, China’s largest and most populous city, similar to its hub in Amsterdam, so that the airline can extend its services to passengers traveling from and around China to the US. With the expansion into the world’s largest economy, Delta will continue to establish its West Coast presence to create a gateway to serve the Asian markets. We currently have a price estimate of $46 per share for Delta, which is 5% ahead of its current market price.
7. Keeping Shanghai Company
Zijie Tiaodong Technology is a mobile Internet company headquartered in Beijing. Headline Today, a mobile news app developed by the company, boasts over 230 million users and is one of the most popular mobile apps in the country. In March, Zhang Yiming, founder and CEO of the company, made a decision to set up a research and development center as well as an operation center in Tianjin, a port city adjacent to the capital. Zhang's decision followed the approval from central authorities to set up new free trade zones (FTZs) in the northern municipality, and in south China's Guangdong Province and southeast China's Fujian Province.
8. Yuan to account for 10% of world reserves by 2025
The yuan will account for 10 percent of world reserves by 2025 with Asian monetary authorities showing the most support, according to a survey of central banks carried out in March. The yuan will make up an estimated 2.9 percent of foreign-exchange stockpiles by the end of this year, based on the Central Banking Publications survey sponsored by HSBC Holdings Plc. It includes responses from 72 monetary authorities with $5.9 trillion in reserves. Thirty-five said they either hold the yuan or are considering doing so.