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Finance

UnionPay's online users exceed 150m barrier

China UnionPay Co Ltd, a payment processing and electronic funds transferring company, said on July 29 that the number of its Internet and mobile payment users has exceeded 150 million. More than 255 banks have supported China UnionPay's Internet and mobile Internet-based payment service. China's online third-party payment market is worth 5.4 trillion yuan ($874.37 billion) and may more than double in the next four years, according to iResearch, an Internet market research service provider.

Sinopec to raise $16b from retail divestment

China Petroleum & Chemical Corp (Sinopec), owner of more than 30,000 service stations around the country, is seeking to raise 100 billion yuan ($16 billion) by selling about a one-third stake in its retail unit, people familiar with the matter said. The sale would pave the way for an eventual listing of the unit, they said, asking not to be identified because the information has not been made public. Sinopec said in February it was looking to sell as much as 30 percent of the business as the government encourages more private investment in state-owned industries.

Fuel stockpiles up as hybrid cars hit road

Petrol inventories in China rose to a record high for a third month in June as an expanding fleet of new-energy vehicles limited demand for conventional supplies in the world's second-largest oil consumer. Petrol stockpiles rose 2.7 percent from May, said China Oil, Gas & Petrochemicals, a newsletter published by Xinhua News Agency. Supplies expanded to an estimated 7.81 million metric tons, the highest level since January 2010, when Bloomberg started compiling the data. Kerosene inventories also climbed to a record 1.88 million tons, up about 4.3 percent from a month earlier. China will waive a 10 percent tax on purchases of new-energy motor vehicles (electric cars, plug-in hybrids and fuel cell vehicles) from Sept 1 to the end of 2017, the government said on July 9.

Shipments of gold from HK fall again

Gold shipments from Hong Kong to the Chinese mainland fell for a fourth month in June amid weaker demand from retailers and a deepening investigation into commodities being used in financing deals. Net inbound shipments totaled 36.4 metric tons, compared with 52.3 tons in May and 100.9 tons a year earlier, according to calculations by Bloomberg News based on data from the Hong Kong Census and Statistics Department. Shipments to Hong Kong from the mainland rose to 19.7 tons in June from 14.9 tons in May, the statistics department said in a separate statement.

Service trade tipped to surpass $660b in 2014

The service trade in China is expected to be worth more than $660 billion this year and exceed $1.2 trillion by 2020, the Ministry of Commerce says. In the years from 2011 to 2013, services accounted for 10.3 percent, 10.8 percent and 11.5 percent of China's foreign trade, respectively. In the first quarter of this year, the figure reached 12.4 percent, up 1.4 percentage point from a year earlier.

New policies on coal production

The government will introduce policies to regulate the production of coal soon, an official of the China National Coal Association said. Wang Xianzheng, president of the association, said that since the second half of 2012, coal use has slowed. The industry has faced the rising pressure of falling prices and surging inventories, causing losses for the sector. According to a recent survey by the association, more than 70 percent of China's coal companies are losing money.

Auto

Profit beats forecast as deliveries rise

Nissan Motor Co, Japan's second-biggest carmaker, reported second-quarter profits that beat analysts' estimates as deliveries rose in China and the US, its two biggest markets. Net income rose 37 percent to 112.1 billion yen ($1.1 billion), beating the 84.3 billion yen average of 14 analyst estimates compiled by Bloomberg News. Nissan maintained its profit forecast.

Hyundai profit falls in second quarter

Hyundai Motor Co, South Korea's largest automaker, reported a second-quarter profit drop after the strengthening won eroded overseas profits. For Hyundai, competition is getting tougher in markets such as China and the United States, where its delivery growth is lagging behind the industry-wide average. Hyundai boosted sales by 9.6 percent in China in the first six months of this year, lagging behind the 11 percent industry-wide growth rate, according to company and auto association data.

Medicine

Joint plan for making heart pacemakers

The medical device maker Medtronic Inc of the US and Hong Kong-listed Lifetech Scientific Corp have announced a plan for joint production of Lifetech pacemakers for China. Lifetech will develop a portfolio of pacemaker and cardiac products, and establish pacemaker manufacturing capabilities at its factory in Shenzhen. Medtronic will provide technology and training support as Lifetech enters the pacemaker market.

Resources

Huge gold deposit found in Xinjiang

A "giant" gold deposit was discovered in Wuqia county, Xinjiang Uygur autonomous region, Xinhuanet reported on July 28. It said the Xinjiang Bureau of Geology and Mineral Resources explored a "super-large gold deposit" that could yield 127 metric tons of gold on the basis of an analysis conducted at the end of June. The potential value of the discovery is more than 40 billion yuan ($6.4 billion), which would make it the biggest gold vein found in Xinjiang.

Aviation

Guangzhou offers customs service

Customs services were launched in the comprehensive bonded area at Guangzhou Baiyun International Airport on July 29, signifying full implementation of all the favorable policies for the area. Guangzhou Customs said in a statement it provides one-stop services to companies in the area including registration, alteration and customs declaration.

Technology

Online website to do R&D in Silicon Valley

Vipshop Holdings Ltd, a Chinese online shopping website, established its first overseas research and development center in Silicon Valley, California, on July 25. It will focus on analyzing big data and optimizing the user experience of the shopping website on mobile devices. The center will further strengthen the company's competitive edge worldwide, said Shen Ya, chairman and chief executive officer.

ZTE smartphone plant for high-tech zone

ZTE Corp says it plans to build a smartphone plant that can bring in revenue of 10 billion yuan ($1.62 billion) a year. The first phase of the plant, in a high tech zone in Xi'an, Shaanxi province, will ship 15 million smartphones each year, ZTE says. Xi'an aims to establish a complete smartphone industry chain in the city in three to five years. The government there hopes ZTE's factory will generate 100 billion yuan in annual revenue for the hardware manufacturing industry, although smartphone production has never been a core industry for the city.

China Daily-Agencies

(China Daily Africa Weekly 08/01/2014 page20)