China Digest

Economics and policy from China’s newspapers

Friday March 3, 2017

Probe on CPPCC member over ‘disciplinary violations’

Sun Huaishan, a member of the political advisory Chinese People’s Political Consultative Conference (CPPCC) unit under the Communist Party, has been “placed under investigation” for “seriously disciplinary violations”, reported Caixin on Thursday evening. Sun, 65, is also a director of the Hong Kong, Macau and Taiwan affairs committee under the CPPCC National Committee and was elected into the party’s Central Committee in 2012, Caixin said. He was last seen on February 2, the report said. Sun’s career started with the Communist Youth Party and he had been involved with the CPPCC since 1994, rising up the ranks, it said.

JD.com sells stake in JD Finance for US$2.08 billion

JD.com said it would sell 68.6% of its share in JD Finance for 14.3 billion yuan (US$2.08 billion) to an unnamed buyer, reported Caixin. The deal would sees the value of JD Finance increase to 50 billion yuan, potentially making it the biggest competitor to Ant Financial, which received US$60 billion in Series B financing last year, the report said. Under the terms of the deal, JD.com will receive 40% of JD Finance’s pre-tax profit and has the right to swap this for 40% of JD Finance’s future equity, subject to approval from the regulators, the report said. JD.com Chief Executive Richard Liu Qiangdong also receives 4.3% of the financial arm’s shares, but maintains majority voting rights through proxy agreements, it said.

US$174 billion profit forecast for industrial SOEs in 2017: SASAC

Total profit at state-owned industrial enterprises is expected to reach 1.2 trillion yuan in 2017, Yicai reported on Thursday evening, citing the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council. It is a 10% rise from the 1.175 trillion yuan in 2016, it added.

Hangzhou to ban purchases of third property in policy tightening

Hangzhou residents will be banned from buying a third property as the local government tightens its housing policy, Yicai reported on Thursday evening. The new rule takes effect on March 3.

P2P regulatory framework is almost complete, says CBRC

China’s new peer-to-peer (P2P) regulatory framework is almost complete, Caixin reported on Thursday afternoon quoting Cao Yu, deputy director of the China Banking Regulatory Commission, at a State Council press conference. The new framework acknowledges P2P’s nature as information intermediaries and keep records of transactions and carry out daily reconciliation, the report said.

Lenovo Group sells stake in property firm for US$235 million

Lenovo Group is selling its 49% in Chengdu Lian Chuang Rong Jin Investment, a property developer, to Hong Kong-listed Sunac China Holdings for 1.6 billion yuan, reported Caixin on Thursday evening. Lenovo would get a pre-tax gain of HK$1.7 billion (US$218.5 million), the report said. The additional funds will be used for operations and investments at Hong Kong-listed Lenovo, the report said.