Baidu and CITIC to launch first independent direct bank
The Asia Times editorial picks of important economics, policy and market-moving stories from Chinese-language media
The China Regulatory Banking Commission has approved the establishment of Baixin Bank, a joint investment of China CITIC Bank and Internet giant Baidu that will offer direct banking services, the Paper reported. It initiates the first independent direct bank in China, which will offer services remotely via online and telephone banking with no branch networks.
New financing guarantee service rules disclosed
New regulations for financing guarantee companies to be implemented October 1 include the provision that these firms must have at least 20 million yuan in registered capital, the Paper reported. Also, outstanding liabilities guaranteed by a company should not exceed 10 times its net assets, the reported added. The State Council said it would boost financing guarantee services for small and micro businesses and the rural sector in the meantime.
Baidu selling food delivery service for $US500 million
The Shanghai-based food-ordering platform Ele.me will take over Baidu’s food and beverage delivery service, Waimai.baidu, in a deal valued at around US$500 million, Caijing reported. Baidu will assume 5% of Ele.me and Waimai.baidu is expected to run independently for another year after the transaction, a Yicai report added.
China’s Great Wall automaker eyes bid for Jeep
Great Wall Motors, a Chinese automobile manufacturer, is looking at buying Fiat Chrysler Automobiles (FCA)’s Jeep unit, Caixin has reported. Adam Jonas, analyst from Morgan Stanley, estimates that the Jeep unit is worth US$33.5 billion, while the entire FCA is valued at US$32 billion. Insiders are unsure if the Chinese specialty SUV maker has the ability to handle the acquisition, as its total revenue for the first half of 2017 was 41.3 billion yuan, with a net profit of 2.5 billion yuan.
Real estate giant acquires 5% of Evergrande
Chinese Estate Holdings, one of Hong Kong’s major real estate developers, disclosed in its semi-annual report this week that it has bought 5% of Evergrande Group on the open market between April and July, an expenditure of HK$8.1 billion (about 7 billion yuan) . The company said it will consider offering dividends to its shareholders if share prices reach a satisfactory level, Caixin reported. Shares in Evergrande soared to a record high last month.
Two SOEs to merge with China Poly Group
Two state-owned enterprises, Sinolight corporation and China National Arts & Crafts Group, will be integrated into China Poly Group and become its wholly owned subsidiaries, the Economic Information Daily reported. The number of SOEs under the direct supervision of State-owned Assets Supervision and Administration Commission of the State Council will decrease to 99 after the integration, the report said.
NDRC approves 22 more infrastructure projects
The National Development and Reform Commission (NDRC) has given its approval to 22 fixed-asset investment programs in July, for a total of 165.5 billion yuan, the Economic Information Daily reported. The programs are mainly in the area of energy, water conservancy, transportation and high technology. By the end of June, infrastructure projects have attracted 9.9 trillion yuan in investment and 659 of them have started construction.
China Railway to buy 500 next-gen ‘Fuxing Hao’ trains
China Railway plans to purchase 500 new generation 350 km/h high-speed “Fuxing Hao” trains from the China Railway Rolling Stock Corp (CRRC), the Paper reported. Details of the purchasing contract haven’t been disclosed yet, the report added. Construction of the “Fuxing Hao” train took three years and involved 20 companies.
Shenzhen and Guangzhou lead trade values
Total import and export values stood at 13.14 trillion yuan (US$1.97 trillion) in the first half of 2017, a 19.6% year-on-year increase and the fastest half year growth since 2011, Sina Finance reported, citing data from the General Administration of Customs. Import and export values in Shenzhen and Guangzhou amounted to one trillion yuan, around one seventh of the total national value.
Beijing expands ‘no-go’ area for diesel trucks
Diesel trucks with Beijing licences are banned from using the fifth ring road from 6 a.m. to 11 p.m., while trucks without local licences are forbidden to enter the sixth ring road between 6 a.m. to 12 p.m., according to newly released regulations, Caixin reported. The move is aimed at improving the city’s air quality and to achieve the target of reducing the annual average concentration of PM2.5 atmospheric particulate matter to 60 mg per cubic meter.