IN BRIEF (Page 24)

SAP to cash in on e-commerce boom

German software company SAP SE is seeing big growth opportunities from China's e-commerce boom and its partnership with Alibaba Group Holding Ltd, said Mark Gibbs, president of the software giant's China region, on May 24. Gibbs spoke after SAP Greater China delivered strong financial performance in the first quarter. SAP has joined with Alibaba Cloud in April to help local businesses accelerate digital transformation.

Overseas insurance sales scrutiny tightened

The insurance regulator has asked all of its branches to heighten vigilance against sales of products in the Chinese mainland by overseas insurers that break rules, Shanghai Securities News said on May 24. It said the China Insurance Regulatory Commission has asked all branches to investigate cases of domestic consultancies, wealth management and insurance firms receiving payments from foreign firms, or holding summits or advertising regarding foreign insurance products.

Consortium to buy Europe's Aixtron

A group of Chinese investors has agreed to buy Aixtron SE, a German supplier of semiconductor equipment, for 670 million euros ($752 million), giving the manufacturer a chance to boost sales by expanding in Asia. The offer is being made through a unit of Fujian Grand Chip Investment Fund that is 51 percent owned by Zhendong Liu, a Chinese business executive, Aixtron said.

CIC ends negotiations with Yum Brands

A consortium that includes sovereign wealth fund China Investment Corp and US buyout firm KKR & Co has ended discussions to buy a stake in Yum Brands Inc's China unit, people familiar with the matter said. Kentucky-based Yum Brands, owner of Pizza Hut and KFC, has been looking to spin off its 7,205 China restaurants this year amid pressure from activist investor Corvex Management. One of the main sticking points was the CIC consortium's desire to have majority control in the China business, which Yum reportedly would not entertain due to negative tax implications.

Buffer granted for tax on online imports

E-commerce companies have been given a one-year buffer period to rethink their cross-border strategies, after the government released new regulations that ease controls introduced in April on certain imported goods sold online. The country's customs authority said it will continue to allow the direct importation of cosmetics, baby formula, medical equipment and healthcare-related food in 10 cities, without permission, or the filing of special applications. Companies have been told they have until May 11 next year to bring imported goods into bonded warehouses in the cities - including Shanghai, Hangzhou, Ningbo, Zhengzhou, Guangzhou and Shenzhen - without having to complete the customs clearance forms originally required.

Commodities futures market may open

China may open up its commodities futures market to overseas and financial investors, the country's securities regulator said, as the world's top consumer of many raw materials seeks to play a larger role in setting global commodities prices. China's commodities exchanges will also maintain a close eye on movements in the futures market, China Securities Regulatory Commission Vice-Chairman Fang Xinghai said.

More Chinese trains for Bangkok Skytrain

BTS Group, which runs the Skytrain mass transit system in Bangkok, has signed a contract to buy 24 trains from CRRC Changchun Railway Vehicles Ltd and another 22 trains from Siemens AG, according to media reports. The 46 four-car trains from both the Chinese producer of mass transit vehicles and German-based train maker will be used for the Thai capital's green lines and their extension in the next 10 years.

Shanda leads purchase in Lending Club

Chen Tianqiao, the founder of Shanda Group, who a decade ago was China's youngest billionaire, has led the purchase of an 11.7 percent stake in online lender Lending Club Corp, according to a filing with the US Securities and Exchange Commission. In a continued move away from the online games industry in which Chen made his early fortune, the Singapore-based investment company said it is teaming up with three other investors in acquiring the stake. They paid a combined $148.7 million for 29 million shares in Lending Club and another $11.2 million for 15.7 million options. Once the options are exercised, Shanda will be Lending Club's largest shareholder.

MP & Silva sells stake to Chinese

MP & Silva, a sports media company whose partners include the National Football League, Formula 1 racing and the English Premier League, has agreed to sell a controlling stake to a group led by Beijing Baofeng Technology Co, which went public last year. The deal values the company at $1.4 billion, said sources who requested anonymity. It is the latest Chinese bet on the global growth of professional sports.

Parts maker plans new Tianjin plant

German auto parts supplier Continental AG plans to invest $80 million in a new factory in Tianjin, authorities of the municipality said on May 20. The factory, scheduled to start operating in 2017, will be located in the Tianjin Economic-Technological Development Area, according to the area's management committee. Continental launched a business in TEDA in 2007, producing automotive electronic products for global clients. It expects to be able to produce a greater range of products in China with the new plant.

Volkswagen China recalls 486 vehicles

Volkswagen China started to recall 486 vehicles due to sunroof design defects on May 20, according to China's quality watchdog. The recall involves imported Magotan Variant produced between Oct 14 and Feb 9, according to the General Administration of Quality Supervision, Inspection and Quarantine. Due to design defects, the sunroof of these vehicles may not function properly and could pose safety risks, it said.

Report says Tencent in talks to bid for Supercell

China's internet giant Tencent Holdings Ltd is said to be in talks to buy control of one of the top-earning game developers in the world from SoftBank Group Corp, in a deal worth $5 billion. The Wall Street Journal reported that Tencent is in discussions to buy a majority stake in Finnish game maker Supercell. The discussions are at an early stage and it isn't clear if SoftBank, which owns 73 percent of Supercell, is talking to other potential bidders, said the newspaper. Supercell, founded in 2010, is valued at $5.25 billion. According to Chinese media reports, Tencent has already applied for $4 billion in bank loans to prepare for the possible deal.

( China Daily Africa Weekly 05/27/2016 page24)