China Business News

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Contracting Non-Manufacturing Index Signals Weakening Chinese Economy

China’s non-manufacturing industries shrank in February for the first time in three months, suggesting lagging growth in the overall economy. The non-manufacturing Purchasing Managers' Index (PMI), a key economic indicator, fell to 48.4% from 52.9% for January, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. 

PBOC Announces Plan to Loosen Capital Controls

The People’s Bank of China (PBOC) has released a report that includes a draft timetable for loosening capital control and currency liberalization. According to the report, reform measures can be outlined in three stages:

Stage 1:  The next 3 years offer Chinese investments a strategic growth opportunity as foreign banks and companies struggle to recover from the global economic slowdown.

Joint Venture Negotiations With NBC Universal To Create Tianjin Theme Park

China’s sixth-largest city, Tianjin, has initiated joint venture negotiations with American media and entertainment company Comcast Corp’s NBC Universal to build a theme park in the port city, according to the head of a Chinese trade delegation team visiting Los Angeles. While the talks are an early stage, Tianjin officials plan to make contacts with other Hollywood studios before taking any decision on joint venture.

Google-Motorola Deal: A Shield Against “Anti-Competitive Threats”?

China is reviewing a Google-Motorola acquisition deal worth USD 12.5 billion under its anti-monopoly laws. While Google had announced its plan to acquire Motorola Mobility Holdings six months ago, in a recent development U.S. and European regulators approved Google-Motorola deal. Google still needs approval from China, Taiwan, and Israel before it can take control of Motorola Mobility Holdings.

China Set to Double Overseas Investment

--S.J. Grand Managing Director, Corporate Finance, quoted in the The Australian newspaper on the state of overseas investment in China--

By Michael Sainsbury

CHINA will double the rate of its overseas investment to over half a trillion dollars for the five years to 2015 as it continues to broaden the scope of its targets, which now include Australian farms and property as well as mining companies.

China’s FDI Plunges Amid Grim Global Economy

--The outlook for FDI in China this year does not seem very optimistic due to deepening Euro zone debt crisis and the changes in China’s overseas funding policies for some industries, said the Ministry of Commerce in Beijing--

According to the Ministry of Commerce, FDI in China fell for the third straight month as the foreign investment registered a drop of 0.3% to USD 9.997 billion in January from a year earlier and a decline in spending of 12.7% in December after a contraction the previous month that was the first since 2009.

Alibaba Yahoo Deal Fails

--Yahoo’s tax-free deal to offload assets to partners Alibaba and Japan Yahoo has failed--

CIC Wary of EU Bond investment

--China Investment Corp (CIC) remains wary of investing in European government bonds despite a plea from Germany's chancellor, but will look for opportunities in infrastructure and real industrial projects--

China Stocks Decline On Moody's Europe Rating Cut

--Chinese stocks declined after Moody’s cut the debt ratings of six European nations, including Italy, Spain and Portugal, reigniting concern the region will struggle to contain its crisis--

BoCom to Raise $7.9 Billion through Private Placement

Bank of Communications (BoCom), China's fifth-largest bank by assets, plans to raise RMB 50 billion (USD 7.9 billion) through a private share placement to meet stricter bank capital requirements, Reuters reports.

Of the five largest banks in China, BoCom has the lowest capital adequacy ratio which makes it the most likely for the bank to issue new stock, analysts said. Raising funds through a private share placement would help ease pressure on the stock price from a massive new supply of shares.

Growth Concerns as China Imports Crumble

--Chinese exports fell and imports slid more than forecast in January as a weeklong holiday disrupted trade--

China cuts dividend payouts for state banks

--China's Central Huijin Investment Co. will cut the dividend payout ratio for state owned banks to help relieve capital strains--

Central Huijin Investment Ltd., a large state-backed shareholder in China’s four biggest lenders, ICBC, China Construction Bank, the Bank of China and the Agricultural Bank of China, said the lenders will lower their dividend payouts to shore up capital.

China's central bank pledges support for homebuyers

--Vows support for first-home buyers as crackdown on speculation threatens to trigger a property slump in China--

The central bank in China will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People’s Bank of China said on its website yesterday.

A government clampdown aimed at make housing affordable is cooling market prices and driving down transactions as Europe’s sovereign-debt crisis puts a ceiling on export demand.

Google's business "Continues to Thrive" in China

China is the largest internet market by users. Amid surging demand for advertising services in China, the world’s most populous country, Google Inc.’s business is thriving in China, said Daniel Alegre, president of Google’s Asia-Pacific operations.

Google ran afoul of Chinese authorities in 2010 for refusing to abide by local censorship rules and shuttered its unfiltered search tools in China. Instead, the company began redirecting users to pages in Hong Kong.

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