China Digest

Economics and policy from China’s newspapers

Thursday March 23, 2017

Building 5G networks with rivals possible: China Telecom boss

Yang Jie, China Telecom chief executive and acting chairman, said on Tuesday the mobile network operator did not rule out working with other telcos on building 5G networks, Caixin reported on Tuesday evening. Yang made the remark at China Telecom’s 2016 results announcement, reporting a 6.4% rise in revenue to 353 billion yuan (US$51.26 billion), but annual net profit dropped 10.2% to 18 billion yuan compared to 2015. Yang also aims to increase the number of new 4G users to 60 million by the end of this year.

Net profit at Citic Securities slumped almost 50% in 2016

China’s largest investment banking firm by total assets blamed volatile markets for poor results in 2016, reporting an almost 50% slump in net profit to 10.365 billion yuan, with revenue also down 32% to 38 billion yuan in 2016, Caixin said on Tuesday evening. Citic Securities aimed to strategize business based on offering “high-end” profits in 2017, the report said.

China Resources Land spent US$9.09 billion in 2016 on land

China Resources Land, the property developing arm of state-owned enterprise China Resources Group, spent 62.6 billion yuan to buy 39 plots of land in 2016, Caixin reported on Tuesday evening. The Hong Kong listed property developer posted a 10% year-on-year rise in net profit to HK$20 billion (US$2.58 billion) in 2016, it added.

Software industry revenue to hit US$1.16 trillion by 2020: MIIT

The Ministry of Industry and Information Technology (MIIT) said estimated revenue of the country’s software industry would reach 8 trillion yuan by 2020, Securities Daily reported on Wednesday. MIIT Minister Xie Shaofeng said it would also push for technical innovation and cultivate new business formats in the internet of things, artificial intelligence and big data, the report added.

We welcome mainland property buyers in Hong Kong: Li Ka-shing

Home prices in Hong Kong will not fall over the next two years due to strong buying demand, Caixin reported Wednesday evening, quoting Li Ka-shing, the city’s wealthiest man and chairman of CK Hutchison Holdings. CK Hutchison Holdings and CK Property, Li’s two holding companies, both saw stronger profits in 2016. “Hong Kong is an international and open city and I welcome people from mainland China to buy property here,” he said.