IN BRIEF (Page 20)

UAE, China to create renminbi clearing hub

The United Arab Emirates has signed an agreement with China to set up a clearing hub for renminbi, UAE media reported. The UAE clearing hub for the Chinese currency, which will satisfy growing needs among UAE-based firms and banks, will be the second in the Middle East after Gulf state Qatar set up the region's first yuan clearing hub in April.

The UAE's central bank said that the agreement was signed while Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan was in China recently for an official visit, according to reports.

Central bank reiterates need for stable yuan

The People's Bank of China has reiterated that it will aim for stability for the yuan as it seeks to promote exchange-rate reform and maintain prudent monetary policy.

Policymakers will "earnestly strengthen and improve risk management" to ensure financial stability and prevent market risks, the central bank said after its routine quarterly monetary policy committee meeting. Monetary officials said they would keep moderate liquidity in the financial system, according to the panel's fourth-quarter statement.

Shipping companies fined for price-fixing

Eight international shipping companies, including Japan's Mitsui OSK Lines, Nippon Yusen KK, Kawasaki Kisen Kaisha, and Chile's Compania Sud Americana de Vapores, have been investigated for monopolistic practices. The National Development and Reform Commission also said that 407 million yuan ($62.7 million; 57.3 million euros) in fines have been handed out.

Collusion on price manipulation among these companies violated the anti-monopoly law, raised freight charges and hurt the interests of end users, the commission said.

Mainland gold imports fall for second month

Net gold imports to the Chinese mainland from Hong Kong dropped for a second month in November as investors were deterred by bearish prospects for prices amid rising United States interest rates. Net purchases declined to 66.8 metric tons from 68.2 tons in October and 87.2 tons a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg.

Beijing-Tianjin-Hebei integration on fast track

A new railway route linking Tianjin and Baoding in Hebei province started running on Dec 28, shortening the commute time from about two-and-a-half hours to just an hour. The railway covers a distance of 158 kilometers, with eight stations along the route. The initial operating speed will be 200 km/h. The new line, which took more than five years to build, not only links two key cities in the Beijing-Tianjin-Hebei metropolitan area, but also connects to other major railway routes across the country.

Rail freight slump eases in November

The slump in China's railway freight volume lessened slightly in November, the country's top economic planner said on Dec 28. The railways carried about 270 million metric tons of cargo last month, down 15.6 percent year-on-year, compared with a fall of 16.3 percent in October, said the National Development and Reform Commission.

Although the weak improvement showed that business is picking up, freight volume for the whole year looks set to decline to very low levels as the broader economy is under persistent downward pressure.

Forum aims to boost brand awareness

The China Brands Internationalization Forum was held at China National Convention Center in Beijing on Dec 27, aiming to improve Chinese brand awareness globally. The forum was sponsored by the International Advertising Association China branch. There are only two Chinese brands among the best 100 global brands in 2015 selected by Interbrand, a brand consultancy.

CEO: Data to become 'new energy' in future

Analysys International predicts that data will be the "new energy" in the future, said Yu Yang, founder and chief executive of the company, a big-data analysis and ratings agency. The Internet is a natural place to use virtual currency like bitcoin, Yu said. "Although bitcoin came across many challenges, it will come back in a new form soon."

The Beijing-based company, founded in 2000, proposed the concept of Internet Plus in 2012. The concept aims to integrate mobile Internet, cloud computing, big data and the Internet of Things with modern manufacturing.

UBS says Q4 growth likely flat at 6.9%

China's economic growth is expected to be unchanged in the fourth quarter of this year, but an improvement is still distant due to property weakness and excess capacity, according to a report from UBS AG.

The Swiss banking group expects Q4 growth of 6.9 percent year-on-year, level with the third quarter, bringing 2015 growth to between 6.9 percent and 7 percent. "November's data release confirms that China's real economy is stabilizing tentatively at low levels and we are far from seeing a fundamentals-driven rebound," said the report.

Public opinion sought on P2P lending rules

The Chinese government started to elicit public opinion on the first regulation for peer-to-peer lending and related services on Dec 28, to prevent financial risks and better safeguard the safety of the lenders.

The upcoming regulation forbids P2P lending companies from engaging in 12 kinds of business, including rasing funds from lenders.

P2P lending platforms are required to put their clients' money into the custody of qualified banking institutions and to manage the clients' money and the platforms' own capital in separate accounts.

Duty-free shopping limit to rise in Hainan

Hainan will raise the upper limit of offshore shopping eligible for duty exemption, provincial Party chief Luo Baoming said on Dec 28, the latest move to boost spending on the resort island. Hainan allows non-locals to make duty-free purchases twice a year before taking flights out of the island, each capped at 8,000 yuan ($1,230; 1,128 euros). That amount is expected to double. The province will also promote online duty-free shopping while allowing those who leave the island by train to enjoy duty exemptions.

Merchants Group acquires Sinotrans

The State Council has approved China Merchants Group's acquisition of Sinotrans and CSC Holdings Co, the state asset regulator said on Dec 29. No further details were provided.

Copper smelters to cut spot metal sales

Nine large copper smelters in China have agreed to cut sales of spot metal by as much as 200,000 metric tons in the first quarter of 2016 to counter low prices, an executive at one of the smelters said on Dec 28. The amount is equal to about 10 percent of China's first-quarter refined copper production in 2015.

Hanergy value drops $20b since suspension

Hanergy Thin Film Power Group Ltd, the solar equipment maker that earlier this year briefly became the world's most valuable clean energy company, is now worth almost $20 billion less than when trading was suspended in Hong Kong more than seven months ago. Hanergy is currently worth about HK$9 billion ($1.16 billion; 1.06 billion euros), compared with a market value of HK$163 billion when trading in its shares was halted on May 20 after falling by 50 percent.

(China Daily Africa Weekly 01/01/2016 page20)