IN BRIEF (Page 20)

Policy

'No crackdown' on Yu'ebao

The People's Bank of China will regulate the fast-growing Internet finance sector more carefully, but it won't crack down on it, the head of the central bank said on March 11.

PBOC Governor Zhou Xiao-chuan made the comment on the sidelines of the annual session of the National Committee of the Chinese People's Political Consultative Conference.

It was Zhou's first comment on Yu'ebao, a popular but controversial online fund offering, and its Internet competitors.

He didn't give any indication of what steps the PBOC will take - or when.

What, if any actions, the government might take to regulate Internet finance has been the subject of much speculation as China's lawmakers gather this week in Beijing to discuss social and economic policies.

Curbs on offshorelending lifted

China's foreign currency regulator eased restrictions for companies registered in Shanghai's recently established free trade zone, increasing the amount that foreign currency companies registered in the zone can lend in offshore markets, an announcement posted on the zone's website said. The new regulations issued by the State Administration of Foreign Exchange increased the amount of funds companies can lend to 50 percent of net ownership equity, up from 30 percent. The rules also allow domestic banks registered in the zone to use up to 10 percent of foreign exchange held in a zone account for investment in China.

Retail

Discount chain quits Beijing for Shanghai

The distribution chain Dia Group of Spain is readjusting its China strategy by withdrawing its discount chain Diatiantian from Beijing and focusing on Shanghai, Chinese media reported. Diatiantian will quit Beijing within a year and concentrate on Shanghai and surrounding markets, and plans to open 100 shops this year, China Business News quoted Fernando Gonzalez Somoza, the discount chain's China regional general manager, as saying.

Company

Grain trader purchase to secure food supplies

COFCO Corp, one of China's largest State-owned food processing companies, is in advanced talks to buy a stake in Dutch grain trader Nidera, at least two people familiar with the matter said, in a move to give China greater access to food supplies. The precise stake and amount that China's largest State-owned grain trader was looking to pay for Nidera was not immediately clear.

Auto

BMW targets 2m sales in 2014 in China and US

Bayerische Motoren Werke AG plans to sell more than 2 million vehicles this year as demand grows in China and the United States. Two-month group deliveries rose about 6.5 percent, propelled by a 9 percent jump at the BMW nameplate, Chief Executive Officer Norbert Reithofer said on March 4 at the Geneva International Motor Show. The company will need an additional plant in North America and plans to expand its two Chinese factories to help meet demand, he said.

Geely buys Britishelectric startup

Private-sector vehicle producer Zhejiang Geely Holding Group Co has confirmed that it has bought the British electric startup company Emerald Automotive after a year of negotiations, promising investment of at least $200 million over the next five years to develop its vehicles.

"The purchase is part of our technological development of new-energy vehicles," said Li Shufu, founder and chairman. He did not disclose terms of the transaction, finalized on Feb 28.

Victor Yang, spokesman for Geely, said the purchase is aimed at expanding the British electric taxi market first.

BYD green carsgiven all clear

Chinese automaker BYD received the green light to selling its flagship new-energy models in Beijing and Shanghai, a move signaling a big breakthrough in smashing the trade barriers by local governments to protect their own green vehicle industries, experts say.

Wang Binggang, an electric-vehicle expert, said: "The approval has increased the market space for new-energy carmakers, promoting the development of the domestic electric vehicle sector, because local governments tend only to support their own car factories and discourage other non-local car makers to enter the market."

Aviation

New aircraft hasits maiden flight

A China Southern Airlines' Boeing 777-300ER has made its maiden passenger flight from Guangzhou to Shanghai. The airline, thought to be the only one in the world that operates both the Airbus A380 and Boeing 787, has bought 10 777-300ERs from Boeing. The others will be delivered by 2016. The aircraft will be used for long-haul flights. The airline's Boeing 777-300ER is China's first Boeing 777 that is divided into four independent cabins first class, business, premium economy and economy. The Boeing 777-300ER will be used on the airline's direct service from Guangzhou to New York this summer.

Industry

Plain sailing foryacht industry

Shanghai intends to launch a yacht center project along a section of the Huangpu River located at the North Bund in Hongkou district to develop its yachting industry. The project will include an R&D center, a yacht club and a sailing school, said Zhang Xiping, deputy director of the district government.

In September, the district set up a bonded warehouse to support the project. Hongkou has a 230-meter riverside section along the Huangpu River that could provide mooring for more than 100 yachts. Statistics show that the city had only about 50 registered yachts last year, a small portion of the country's more than 1,000. The city is studying ways of letting yachts cruise on the Huangpu River by setting up an approved sailing zone.

Property

Developer will leavemark in New York

China Vanke Co of Shenzhen has announced it will work with US developers RFR Holdings and Hines on a residential building in New York in an effort to expand its overseas business. This will be China Vanke's second investment in the US after it worked with Tishman Speyer Properties on a project in San Francisco.

Finance

Renminbi 'may becomea top reserve currency'

The renminbi could rival the US dollar as a leading international reserve currency despite obvious challenges, said Yves Mersch, a member of the European Central Bank's executive board.

Delivering a speech at The Luxembourg Renminbi Forum on Feb 26, Mersche said the currency's internationalization is just beginning, but is moving fast.

"Clearly, having become an important trading and payment currency, the renminbi is now taking the first steps toward establishing itself as an international investment currency. If it can do so successfully, it might one day become a leading reserve currency."

China's push to internationalize its currency started in 2008 when the global financial crisis demonstrated the danger of excessive reliance on the US dollar.

China Daily Agencies

( China Daily Africa Weekly 03/07/2014 page20)