IN BRIEF (Page 18)

Vipshop to invest $34m in French retailer

The online retailer Vipshop Holdings Ltd is investing 30 million euros ($34 million) in the French flash-sales site Showroomprive.com to further its overseas expansion, the Chinese company says.

According to Vipshop, based in Guangzhou, Guangdong province, the latest investment is a key step in its going global efforts and would add international luxury goods to the site. Flash sales are discounts offered for a limited time online.

LeTV enters car-hailing race with Yidao deal

Internet company LeTV Holdings Co Ltd took the wheel of car-hailing service provider Yidao Yongche on Oct 20, making the Beijing smartphone maker and online video provider the latest tech giant to enter the cash-burning sector.

A unit of LeTV bought a 70 percent stake in Yidao, which is losing a battle against Alibaba Group Holding Ltd and Tencent Holdings Ltd-backed Didi Kuaidi as well as the United States firm Uber Technologies Inc, backed by Baidu Inc.

LeTV did not disclose the size of the investment, but multiple sources told China Daily the amount was roughly $700 million.

Draft disaster law by year-end

The draft Insurance Act covering earthquakes and natural catastrophes is expected at year's end, two years earlier than planned. According to Dai Shuren, a deputy director of the China Insurance Regulatory Commission, it is likely to focus on earthquakes since they cause heavy losses, and could provide a practical start to the new system.

Yum Brands spins off its China business

Yum Brands Inc, the parent of KFC, Pizza Hut and Taco Bell, announced on Oct 20 that it is splitting off its China business into a separate company.

The spinoff of the $31 billion fast-food group would be named Yum China and focus on the US company's huge but struggling restaurant business in the country.

The company said Yum China will become Yum Brands Inc's franchised dealer, with ownership of the KFC, Pizza Hut and Taco Bell brands. It hopes to expand the number of its outlets in the country to more than 20,000 from current 6,900.

Sinopec may take control of Dragon Aromatics

Sinopec Corp is in advanced talks on taking a controlling stake in petrochemical firm Dragon Aromatics, which operates one of the country's biggest chemical plants.

The discussions come after Dragon Aromatics suffered a second major fire in less than two years at its $3 billion plant in Fujian province. Local authorities want Sinopec to participate before allowing the plant to reopen.

After an April fire, Dragon Aromatics, owned by Taiwan's Xianglu Group, was forced to shut the plant, which has a capacity to produce 1.6 million metric tons a year of paraxylene, a chemical used to make polyester fiber and plastics.

Mentor program for startups launched

China Angels Mentorship Program was launched in Beijing as part of Mass Entrepreneurship and Innovation Activity Week. CAMP is a virtual incubation program hosted primarily by the Administrative Committee of Zhongguancun Haidian Science Park, Ontario Centres of Excellence and China Canada Angels Alliance, promoting cooperation, culture and communication between startups with a global vision.

Property registration revamp's draft rules

An interministerial meeting has discussed the draft of provisional regulations for property registration and the progress of registration around regions.

This marks the preliminary preparation for introduction of the policy, the Ministry of Land and Resources' website said.

To facilitate property registration, local governments are required to clarify responsibilities and share registration information. An online information platform is being tested for this purpose.

Harbin Electric leads race for Dubai coal plant

The Dubai Electricity and Water Authority said a consortium led by Harbin Electric International Co Ltd and Saudi Electricity is the preferred bidder for phase 1 of the $1.8 billion Hassyan "clean coal" power plant. According to one analyst, this is the first time that a Chinese company has won a contract for a power project in the United Arab Emirates. The bid marks China's entry into the region's high-end electricity market.

Renrenle to shut 8 marts in strategic revamp

Renrenle Commercial Group Co said its January-to-September profit might shrink by up to 150 million yuan ($23.6 million; 20.8 million euros), necessitating closure of eight loss-making hypermarkets, in addition to the 18 already shut.

This would help the company centralize its resources and accelerate strategic transformation for a turnaround from the adverse impact of e-commerce, higher operating expenses and fierce competition, it said.

Saudi chemicals firm plans joint ventures

Saudi Basic Industries Corp, the world's second-biggest chemicals manufacturer, plans more than three joint venture projects in China, according to Yousef Al Benyan, its acting chief executive officer. "There are good prospects (in China), and hopefully we will be able to announce them in the first quarter of 2016." He said he had discussed the ventures during a visit to China.

Money manager adds foreign investment team

Springs Capital, a Chinese fund manager with about $5 billion in assets, has hired a four-member team to find international investments for companies and wealthy individuals in China. The team from Hermes Investment Management will be part of a new unit in Singapore, according to a source with knowledge of the matter, who asked not to be identified as it awaits a local regulatory license.

Steel firm extends bond repayment deadline

Sinosteel Co, a state-owned steel trader, is giving investors another month to decide if they want to sell back a bond, after authorities were said to have stepped in to help the company.

Sinosteel said it is extending to Nov 20 an option for investors to offload its 2 billion yuan ($315.2 million; 277.5 million euros) of 2017 notes back to the company, according to a company statement posted on Chinabond's website.

Swaps near 7-week low on pro-growth bets

China's one-year interest-rate swaps traded near the lowest level since August on speculation policymakers will continue efforts to boost growth after the economy expanded at the slowest pace since 2009. The gross domestic product rose 6.9 percent in the three months to September from a year earlier, data showed on Oct 19.

Wind turbine additions to remain strong

China, the world's biggest wind market by capacity, is expected to continue adding new turbines at close to record levels next year as the country leans on renewable energy to help cut greenhouse gases.

The country may add about 23 gigawatts of wind power next year, adding to a record 25 gigawatts expected this year, according to Zhao Feng, director of wind energy at FTI Consulting Inc, a global consulting company.

China Daily

(China Daily Africa Weekly 10/23/2015 page18)