China Digest

Economics and policy from China’s newspapers

Thursday August 3, 2017

China Unicom joins e-commerce partnership

China Unicom, one of three state-owned telecommunication giants, will work with its potential mixed ownership reform partners, Tencent and Alibaba, to set up an e-commerce cooperation center in Shenzhen and Hangzhou, Caijing reported. The two centers have already started to recruit. The mixed ownership scheme for China Unicom is expected to be settled in mid-August.

Cross border e-commerce booming

The volume of cross border e-commerce transactions totalled 1.2 trillion yuan in 2016, a 33.3% year on year increase, the Economic Information Daily reported, citing data from the China e-Business Research Center. China’s express delivery business has ranked top of the world since 2014, while its volume hit 31.38 billion in 2016, compared to 5.7 billion in 2012, it added.

US$259 billion bond quota for 2017

Insiders say 1.74 trillion yuan (US$259 billion) in Chinese municipal bonds are expected to be issued this year, including projects similar to US debt securities to finance capital for public services, the National Business Daily reported. Bond projects issued by local governments in 2017 stand at 800 billion yuan, while a 940 billion yuan quota was left from 2016.

Cities see slump in July home deals

Home deals in 29 major cities decreased 26% year on year in July, the Economic Information Daily reported, citing data from the China Index Academy. First tier cities decreased 46.02% year on year, with Beijing and Guangzhou dropping over 50% to lead the slump.

LeEco pays off US$7.44 million in loans

LeEco has paid 50 million yuan (US$7.44 million) in loans to the China Construction Bank and is actively negotiating with the bank on the remaining 200 million yuan debt to resolve the situation, Caixin reported. The move comes after a Beijing court approved the China Construction Bank’s application to freeze 250 million yuan in assets of former LeEco chairman Jia Yueting on Wednesday.

MasterCard to launch two-dimensional code payment

MasterCard will start a two-dimensional code payment pilot in Hong Kong in 2018, expanding to Thailand and Indonesia by the end of this year, Caixin reported. As the Alipay and WeChat-led two-dimensional code payment system has incompatible standards, MasterCard’s prospects are believed to have more potential, said the report.

Hong Kong the next Asian gaming center?

Hong Kong shows promise in becoming the future Asian gaming center, Caixin reported, citing a PricewaterhouseCoopers report. Though mainland China is more advanced in cultivating IT professionals and developing gaming design, Hong Kong can still make use of its advantages, including holding professional and international competitions and events, the report said.

Wanda Group adds health industry branch

Chinese property developer Dalian Wanda Group has added a new health industry branch to its four existing industrial branches (business, culture, network and finance), and shifted all business management functions of the culture group to the newly established health group, the Paper reported. The move follows an announcement in late July that the group agreed to sell its cultural and tourism projects and hotel assets, the report said.

China expands oversight of overseas investing

Proper financial management must stem from a thorough pre-investment decision-making process, followed by a post-investment performance evaluation process for all state-owned enterprises looking to invest overseas, Caixin reported, citing an announcement from China’s Ministry of Finance. The move is meant to lessen financial risks and improve the efficiency of overseas investments, the report said.