China Business News

S.J.Grand offers quality research, case studies and essential updates on the latest China tax and business issues through our news feed, periodic newsletters and our online resource library.

Please feel free to browse, to search using the tags below or contact an S.J. Grand office if you would like to know more about a particular topic that interests you.

ICBC opens first branch in France

-- Both countries look to increase financial cooperation --

On Tuesday, the Industrial and Commercial Bank of China launched its inaugural branch in Paris, France, according to the People’s Daily. France’s finance minister hailed the opening as a way for France and China to continue to develop their economic cooperation. The two countries had economic exchanges of more than $40 billion dollars in 2010, and the ICBC president hopes the new subsidiary will help bring close ties in banking and investment.

Obama calls for Yuan appreciation

-- Despite recent steps, U.S. believes Chinese currency still undervalued --

China foreign investment jumps in 2010

-- Data shows FDI hit record levels --

The Chinese government released a statement yesterday saying Foreign Direct Investment increased to $105.7 billion, up over 17% from the previous year, Bloomberg reports.

Prudential pours $500 million into Chinese investment company Fosun Group

-- Financial giant says M&A prospects look promising --

On Thursday, US based Prudential Financial Inc. announced that it would invest $500 million dollars into a private equity fund that will be managed by Fosun Group, the Wall Street Journal reported . Fosun Group manages over $10 billion in assets, and covers a multitude of sectors including mining, retailers, pharmaceuticals and real estate.

National Development and Reform Commission publishes new anti-monopoly regulations

-- The PRC aims to strengthen existing anti-monopoly law --

On January 4th, Beijing announced two new sets of regulations that will help to curtail price fixing and business behavior deemed monopolistic. These new measures will be applied to both foreign and domestic businesses, and will be implemented on February 1st.

PRC approves joint ventures for J.P. Morgan and Morgan Stanley

-- U.S. Banks win approval for first new PRC securities joint ventures in six years --

On Friday, Chinese securities regulators helped J.P. Morgan and Morgan Stanley get one step closer to operating in the highly sought-after securities market in one of the world’s fastest growing economies, approving their bids to launch ventures with Chinese partners, according to the Financial Times.

Chinese imports and currency reserves rise ahead of Hu's US visit.

China's foreign exchange reserves rose 18.7 percent last year from the previous year to hit a record $2.85 trillion, above the PRC government's target for 2010 and exceeding the expectation of many economists, reports Bloomberg.

China should consider tax on currency conversions

SHANGHAI--The PRC government should consider imposing a tax on conversions of foreign currency in RMB to dampen speculative capital inflows, according to an article that appeared in the state-run Shanghai Securities News on Monday.

Dow Jones reports that the proposal, from Professor Wang Yong of the People's Bank of China (PBOC) training institute in Zhengzhou, suggests that an increase in the cost of conversion would go some way to protect the Chinese economy from excessive global liquidity.

Outbound M&A: China moves into Latin American energy sector

China's State Grid Corporation might be #8 on the Fortune 500 but the massive power grid builder and operator is little known outside China. This is set to change with a major acquisition in Latin America.

The monopoly power producer in all but five of China's provinces has spent close to $1 billion on seven power transmission plants and their transmission lines in Brazil, according to The Wall Street Journal.

China property tax to ease real estate bubble

BEIJING -- China looks set to impose a new property tax in an effort to ease its overheated property market.

The newspaper China Business News has cited an unidentified source disseminated through state-owned media who provided detailed information of the tax.

"The tax will be from 0.8 percent to 20 percent of the market value of properties and be levied on people with multiple homes or oversize houses," the source said. 

Upcoming Event - Working Capital Seminar in Vietnam

HO CHI MINH CITY -- On January 13, S.J. Grand will be conducting a training seminar on working capital optimization at the Duxton Hotel Saigon, Ho Chi Minh City, Vietnam.

Working capital is often the largest cash consumer for a company and if not kept in check can send an otherwise profitable business into bankruptcy.

8 things you need to know about audits

Audits in ChinaThe audit season in China is approaching fast. To make the experience a little less daunting, for some light holiday reading here are eight things that you need to know about Chinese audit requirements.

Counting down from the top ...

31 December - Inventory
31 March - Audits and Reporting of Individual Income Tax
30 June - Annual Evaluation

New Regulations for Representative Offices

BEIJING -- China’s State Council has issued new regulations for representative offices of foreign enterprises (ROs), with major implications for existing ROs and for new foreign investors planning their Chinese market entry.

The regulations come into effect on 1 March 2011 and outline:

Beijing - Shanghai - Shenzhen - Hong Kong - Paris

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